Major nonfinancial companies are expecting their combined pretax profit for the 2008 business year to plummet 60.8 percent, the steepest fall since relevant data became available in 1976, the Shinko Research Institute said Tuesday.
The profit plunge of around ¥21 trillion is expected to deal a severe blow to central and local government tax revenues.
The estimate covers 1,228 nonfinancial firms listed on the first section of the Tokyo Stock Exchange that have released earnings forecasts for the year to next month.
Combined pretax profits are expected to decline in all 30 sectors in which the companies operate, including four that are anticipating red ink.