Profit levels at most corporations declined for the first time in four years in the 1997 business year to March 31, with at least six of the nation's nine giant "city banks" falling into the red, according to earnings results released through Friday.
Announcements peaked Friday, with more than 200 firms releasing their business results. To date, some 1,190 companies, about 80 percent of the companies listed on the Tokyo Stock Exchange, have reported their earnings results for the year. Combined pretax profits for all but financial institutions declined 2.3 percent from year-earlier levels, according to data compiled by Kyodo News.
Many companies reported poor earnings from their core businesses as a result of the prolonged economic slump and sagging stock prices. In addition, a series of writeoffs of bad loans weighed heavily on earnings at many corporations, such as giant trading houses and construction companies.