More than 30% of companies listed on the First Section of the Tokyo Stock Exchange posted net losses in the fiscal 2020 April-June quarter, due mainly to the fallout of the novel coronavirus pandemic.
According to SMBC Nikko Securities Inc., of the 1,313 firms that had reported first-quarter earnings by Friday, 431 were in the red, while 481 posted declines in profit.
The 1,313 companies account for 98.9% of all TSE First Section firms and exclude those in the financial sector,
The combined sales of the companies decreased by 20% year-on-year to 95.9 trillion yen, while profit fell 61.1% year-on-year to 3.1 trillion yen.
The coronavirus-related state of emergency affected a wide range of industries in April-June, amid widespread calls for people to avoid going out and international travel restrictions. Net profit fell by 83% from the same period last year in the manufacturing industry and 45.8% in the nonmanufacturing industry.
The companies' full-year earnings outlook for the fiscal year ending in March 2021 forecasts a 30.4% year-on-year decline in total net profit, with business performance expected to remain sluggish going forward.
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