TOKYO: Carmakers, electronics manufacturers and other export-oriented firms have posted record profits through September due to the recent depreciation of the yen and an an increase in personal consumption.
Midterm account settlements for the six-month period that began in April reached a peak on Thursday. The weak yen especially affected export-oriented companies, such as vehicle and electronics makers, while growth in consumer spending backed by higher stock prices positively affected leisure and transportation-related companies.
The yen’s depreciation was the main factor in robust profits. The currency has been hovering in the high 90 range to the US dollar since April, having depreciated about 20 yen from the same period of the previous year. A weakened yen tends to push down prices of products exported to foreign countries, resulting in an increase in sales.
Fuji Heavy Industries Ltd’s sales rose by 25.3 percent to 1.12 trillion yen ($11.4bn) from the previous year, and its after-tax profit increased about 2.5 times year-on-year to 99.8bn yen, both record highs. Honda Motor Co’s operating profit also saw a significant gain, rising by 29 percent to 356.4bn yen.
Panasonic Corp posted record net profit of 169.3bn yen for the six-month period to September, recovering sharply from a massive deficit for two years straight amid a sluggish sales of auto parts overseas. Sharp Corp also reported an operating profit of 33.8bn yen.
The news was not all positive, however. Sony Corp reported a net loss for the third consecutive interim result due to a contraction of the domestic market for digital products and an economic slump in emerging nations. However, the operating profit of its mainstay electronics business moved into the black at 10.3bn yen, compared to a 17.7bn yen loss in same period last year.
The market turned lower against the yen than Sony expected, which increased sales of its products overseas. It also compensated for the sales slump by downsizing. However, Sony has a long way to go before it attains a full-scale recovery, after it downwardly revised its fiscal 2013 sales target for liquid-crystal TV screens, personal computers and digital cameras.
Toshiba Corp saw profits from its smartphone business, though its television business remains in a slump. Sales of its semiconductor memory, or flash memory, for smartphones was a major factor in the company’s solid business performance.
WP-Bloomberg
