As earnings season kicks off in Japan, forecast upgrades by two major manufacturers could be an early indication of a profit recovery among the nation’s blue chips.
Canon Inc. and Nidec Corp., two of the earliest major manufacturers to report earnings, both upgraded their full-year outlooks on Monday. Canon is now forecasting operating profit 42% higher than the figure it gave previously, while Nidec lifted its outlook by 12%.
Both companies cited the impact of improved sales and cost cuts, and the newly released predictions were each broadly in line with the average analyst estimates. The upgrades follow that of Murata Manufacturing Co., which gave preliminary first-half earnings well above its forecasts on Friday, while also suggesting it may lift its full-year outlook when it gives full earnings on Oct. 30.