More than 100 listed companies on the First Section of the Tokyo Stock Exchange revised down their earnings forecast for fiscal 2007 ending March this year, due to U.S. economic slowdown, the yen's appreciation and other factors, local press reported Friday.
A total of 117 out of the 769 companies surveyed have lowered their profit outlook, compared with 53 firms which upgraded it, the Asahi Shimbun newspaper reported, citing a survey result by Shinko Research Institute Co.
Exporters were generally pessimistic as they now face lower profits because of the slowing U.S. economy and a stronger yen against the dollar. Among them, Sony Corp. shed its initial forecast for its full-year operating profit by around 9 percent due to the stronger yen.
Victor Co. of Japan expects its operating profit in this fiscal year through March to drop by around 63 percent from its initial projection, largely due to weak sales of audio-visual products in the United States and other overseas market.
Utilities were also largely affected, mainly due to surging crude oil prices. Six of the 10 major electric power companies and all four major gas suppliers in Japan downgraded their operating profit forecasts in fiscal 2007.
Those firms relying on domestic demands also shed their earnings forecasts as consumer spending in Japan has been sluggish.
As recovery is likely to be slow in the January-March period, the last quarter of fiscal 2007, many companies will suffer a downturn in the full-year profits, the paper quoted economists as saying.
Source: Xinhua
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