Most Japanese firms set for sales, profit growth

TOKYO, Feb 1(AFP): Nearly 70 per cent of listed Japanese companies are likely to post sales and profit growth this business year, a sign they are gaining traction after years of deflation, a report said Saturday.

More than 1,000 companies out of about 1,500 firms listed on stock markets are on track to log annual rises in both sales and recurring profits for the business year ending in March, the Nikkei business daily said.

The 1,500 companies are expected to post a combined 10 per cent rise in sales and a 28 per cent increase in recurring profit, the daily said, citing its tally of the companies' forecasts.

The robust earnings are thanks to stronger exports business benefiting from a weaker yen, while domestic consumer spending is also picking up, it said.

Companies are making a steady shift to making profits out of higher sales from the past practice of eking out gains by restructuring businesses, it said. The tally excluded firms in the financial sector and the report did not mention net profit.

The Nikkei said manufacturers were driving the overall improvement in corporate earnings, with sales expected to jump 16 per cent for steelmakers, 14 per cent for automakers, and 13 per cent for machinery makers.