Over 30 percent of the nation’s companies listed on the first section of the Tokyo Stock Exchange suffered net losses in April to June due to the coronavirus outbreak, according to a tally by SMBC Nikko Securities Inc.
Of the 1,313 nonfinancial companies closing books in March that had reported their results, 429 firms posted net losses for the fiscal first quarter.
Combined sales plunged 20.0 percent from a year before to ¥95.9 trillion as companies at various industries were hit hard by economic shutdowns caused by the pandemic. Net profit dived 61.1 percent to ¥3.1 trillion.
Airlines, railway operators and automakers suffered particularly badly due to restrictions on movements of people and a slump in exports.
For the full year to March 2021, combined sales are projected to decline 10.1 percent from the previous year. Net profit is estimated to plummet 30.4 percent.
The tally suggests that an earnings recovery is likely to take time.
“As the coronavirus has hit both manufacturers and nonmanufacturers, it’s difficult to imagine how they will recover,” said Keiichi Ito, chief quant analyst at SMBC Nikko.
While some firms reported strong earnings thanks to demand from people staying at home amid the pandemic, “the situation is extremely severe as a whole,” he said.
The tally covered 98.9 percent of overall nonfinancial companies that are listed on the TSE’s first section and close books in March.