Nikkei analysis… Toyota’s net profit rises to 2.276 trillion won
Japanese companies are smiling due to the weakening yen. The Nippon Keizai Shimbun (Nikkei) reported on the 6th that the net profit of Japanese listed companies in the first half of this year jumped 30% compared to the same period last year due to the low yen and other factors.
The newspaper analyzed the 393 prime listed companies on the Tokyo Stock Exchange that completed the financial statements for the first half of the 2023 fiscal year (April to September) by the 2nd and presented the results of this analysis. The 393 companies represent approximately 40% of the companies listed on the Tokyo Stock Exchange.
Among these, the manufacturing industry was about 7 trillion yen, a 24% increase compared to the same period last year, and the non-manufacturing industry was about 6 trillion yen, a 24% increase.
The newspaper said, “Automobiles led (the increase in net profit) due to the effect of the weakening yen.” “There is also a desire for an increase in the number of visitors to Japan, so retail and leisure activities also increased (net profits),” he explained. He added, “There are risk factors such as economic fluctuations in China, but all corporate performance is trending at a high level.”
Among automobile companies, Toyota Motor Company is a representative example. Toyota’s operating profit, net profit, and sales in the first half of fiscal 2023 all hit record highs.
Net profit recorded 2.5894 trillion yen (approximately 22.68 trillion won), 2.2 times the size of the same period last year. Operating profit was also 2.2 times higher, reaching 2.5592 trillion yen (22.42 trillion won).
According to the newspaper, Toyota increased its operating profit by 260 billion yen (about 2.276 trillion won) due to the weak yen. Toyota was also affected by the easing of semiconductor shortages.
Another automobile company, Subaru, was also able to increase its operating profit by 62.5 billion yen due to the weak yen.
However, due to the Chinese economic downturn, only 50% of electronic components, facility investment, and material companies saw an increase in net profit.
Advantest, a semiconductor company, saw its net profit drop by 64% due to a decline in smartphone sales in China. Sumitomo Chemical had a deficit of 76.3 billion yen.
Among non-manufacturing companies, 65% of companies saw an increase in net profit. Oriental Land, which operates Tokyo Disney Resort, recorded a net profit of 54.5 billion yen due to a recovery in visitor numbers. It reached the highest level in the first half of the year.
The newspaper reported that the net profit of the three companies that operate the high-speed railway JR in the Honshu region also doubled compared to the same period last year.
Source: Donga
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