Japan's Listed Companies Achieve Record High for 4 Consecutive Years, But This Year "Uncertain" Due to Trump Tariffs...

【Tokyo=Kim Kyung-min Correspondent】 The net profit of Japan's listed companies for the fiscal year ending March 2025 (April 2024~March 2025) increased by 10% compared to the previous year, reaching 52.1352 trillion yen (approximately 501.25 trillion won), marking a record high for the fourth consecutive year. By industry, 26 out of 36 industries, or about 70%, saw improved profits. In particular, the non-manufacturing sector offset the sluggishness of the manufacturing sector, driving performance. However, this year, the U.S. tariff policy and the weakening yen effect are expected to negatively impact corporate performance.
On the 27th, according to Nihon Keizai Shimbun (Nikkei), 67% of the 1,072 companies listed on the Tokyo Stock Exchange's Prime Market saw improved profits.
The net profit of the non-manufacturing sector increased by 20% to 29.8267 trillion yen, offsetting the 2% decrease (22.3085 trillion yen) in the manufacturing sector. The gross profit margin was 6.4%, the highest since the fiscal year ending March 2008, before the global financial crisis.
By industry, banks saw the largest increase, with approximately 1.4 trillion yen. All three mega banks achieved record high profits. The increase in interest income due to the expansion of stock sales and rising interest rates had an impact. Insurance also showed a favorable trend, increasing by about 860 billion yen.
The shipping industry also recorded an increase in profits of about 600 billion yen. The increase in sailing days and freight rates due to instability in the Middle East, and the expansion of demand for car carriers boosted performance. Mitsui O.S.K. Lines' energy business segment performed well, and chemical tanker overseas subsidiaries contributed to the performance. In the telecommunications sector, SoftBank Group turned a profit for the first time in four quarters, driving overall performance.
In the manufacturing sector, electronic devices stood out. The semiconductor boom driven by the expansion of demand for generative AI and data centers led to strong performance. Tokyo Electron's net profit increased by 50%, and Advantest's increased by 2.6 times. Fuji Electric also achieved record high profits thanks to the strong performance of its power systems. Chemicals, machinery, and others also saw profit increases.
On the other hand, the automotive and parts, and steel industries were sluggish. The automotive sector's net profit was still the largest at about 6.345 trillion yen, but it decreased by 22% compared to the previous year, resulting in a profit reduction of about 1.76 trillion yen. The weakening yen effect diminished, and the industry struggled in overseas markets such as the U.S. and China. Nissan Motor recorded a net loss of 670.8 billion yen. Toyota Motor posted a net profit of 4.765 trillion yen, a 4% decrease.
The steel industry faced deteriorating overseas market conditions due to the influx of low-priced Chinese products resulting from sluggish domestic demand in China. Domestic construction demand also stagnated due to rising material costs and labor shortages. JFE Holdings' net profit was halved.
Nikkei reported, "Many companies are watching the potential cost increases and economic slowdown due to Trump's tariff policy," adding, "There is a move among export companies to set exchange rates in the direction of yen appreciation rather than the actual rate."

km@fnnews.com Kim Kyung-min Reporter