JAPAN: Company rehabilitation will widen gap between winners and losers

The earnings results season for Q3 2009 (October-December 2009) has almost finished.

Despite a further decline in sales, recurring profits appear to have recovered strongly during the quarter. According to Nomura Securities’ earnings forecast, the recurring profit growth of 352 representative companies in FY2009 (April 2009-March 2010) is likely to be revised upwards to 7.6% from previous expectations of -1.6%. Nomura also expects recurring profits to increase 58.7% in FY2010 (ie the year ending 31 March 2011) and 23% in FY2011 (ie the year ending 31st March 2012). Export-orientated manufacturers such as electric appliances and automobiles are likely to be the main drivers ...