Reuters (April 25)
Profitability is expected to suffer at firms listed on the Tokyo Stock Exchange’s first section. According to Barclays Capital, average net profit “will fall 12 percent this financial year, with the slide led by export-related industries such as auto and electronics firms.” Markets may already have factored this into share prices. There may even be some upside. “Some investors are encouraged by the speed at which power generation capacity has recovered since the quake, and initial plans to force large users to cut back by a quarter may be eased.” In addition, there are hopes that later in the year supply chains will stabilize and consumption will benefit from rebuilding and relief efforts.Profitability is expected to suffer at firms listed on the Tokyo Stock Exchange’s first section. According to Barclays Capital, average net profit “will fall 12 percent this financial year, with the slide led by export-related industries such as auto and electronics firms.” Markets may already have factored this into share prices. There may even be some upside. “Some investors are encouraged by the speed at which power generation capacity has recovered since the quake, and initial plans to force large users to cut back by a quarter may be eased.” In addition, there are hopes that later in the year supply chains will stabilize and consumption will benefit from rebuilding and relief efforts.
Tags: Electricity, Forecast, Japan, Profit, Share prices, Supply chains, TSE
