The combined pretax profits of major firms in the April-June quarter have almost recovered to the level before the worldwide financial crisis that started in September 2008, a brokerage tally showed Monday.
The big movers were exporting companies riding on the back of strong demand in emerging economies, according to Nikko Cordial Securities Inc.
However, many exporting firms have left their earnings projections unchanged for the business year through next March 31 due to uncertain currency movements. If the yen's appreciation continues, such firms' earnings may turn down.
According to Nikko's tally of 1,300 firms that had released their earnings reports for the April-June quarter by last Friday, their combined pretax profits totaled ¥8.12 trillion, or 97.5 percent of the April-June 2008 level. Their combined sales came to ¥125 trillion, or 85.4 percent.
Of 1,252 firms that have released their earnings projections for the rest of the year, only 12.8 percent, or 160 firms, have revised their sales projections upward and only 13.7 percent, or 171 firms, have revised their pretax profit forecasts upward.