Major Japanese companies, excluding those in the finance and utility sectors, are expected to log a 9.6 percent fall in combined net profit for fiscal 2019 through March, affected by the prolonged U.S.-China trade conflict and the spread of a new coronavirus, SMBC Nikko Securities Inc. data showed Tuesday.
The manufacturing sector is expected to drop 16.1 percent overall, with sharp net profit decreases projected for the steel sector at 70.3 percent, transportation equipment manufacturers such as automakers at 31.5 percent, and machinery at 30 percent, according to the data compiled by the brokerage house.
Earnings across companies are likely to continue to fall, with automakers still unable to resume operations at their plants in China, and a drastic decline in demand from foreign visitors at department stores due to the spread of the new deadly virus.