Japanese Companies Surpass Profit Forecasts Amid Weak Yen and Strong Demand

TOKYO — In the April-June quarter, 70% of surveyed Japanese companies exceeded their profit forecasts. The weak yen and robust foreign demand were the main drivers.

Toyota's net profit increased by 2% to 1.33 trillion yen, contrary to a forecasted 7% decline. The yen's depreciation against the dollar enhanced Toyota's profit by 370 billion yen.

Honda and Suzuki also profited from the weak yen, with net profits exceeding expectations.

Hitachi's net profit surged 150% to 175.3 billion yen, fueled by strong demand in the AI and IT sectors.

Tokyo Electron's net profit leaped 96% to 126.1 billion yen, due to robust sales of semiconductor equipment.

Nissan and JFE Holdings performed poorly, affected by fierce competition in the U.S. and weak demand in China.

Overall, 60% of companies on the Tokyo Stock Exchange's Prime market experienced a year-on-year profit increase.

The impact of the weak yen on Japanese companies is evident: those with significant overseas exposure flourished, while those heavily dependent on domestic or specific foreign markets faced challenges. The gap between the winners and losers is pronounced, underscoring the significance of global market dynamics and currency fluctuations in today's business environment.