Economic IndicatorsTop News

Pandemic to wipe out $17 billion in Japan firms’ sales: research

imageEconomic Indicators16 hours ago (Apr 17, 2020 01:55AM ET)

(C) Reuters. FILE PHOTO: A police officer wearing a protective face mask patrols on the street following the coronavirus disease outbreak in Tokyo

TOKYO (Reuters) – Japan’s listed firms expect nearly $17 billion in sales to be wiped out from the coronavirus pandemic that has led to supply chain disruptions, travel bans and government requests to shut down some operations, a private think tank said on Friday.

Of Japan’s 3,778 listed firms, 36.7% disclosed information on the impact the outbreak has had on their operations as of Thursday, Tokyo Shoko Research said in a report.

Of those that disclosed information, 240 firms revised down their sales estimates by a combined 1.8 trillion yen ($16.71 billion), and net profit forecasts by 1.48 trillion yen, it said.

Nearly 40% were manufacturers hit by supply chain disruptions and slumping sales, while about 35% were from the service and retail sectors suffering from soft consumption, the report said.

“The spread of the coronavirus is having a huge impact not just on people’s livelihood but on companies,” it said.

Among those that revised down estimates is major Japanese slot machine maker Universal Entertainment Corp (T:6425), which was forced to suspend its casino operation in the Philippines due to the pandemic, Tokyo Shoko Research said.

Another 510 firms said they could not produce estimates on how much the pandemic could affect their earnings.

An increasing number of firms have postponed their earnings announcement due to the pandemic with the total so far having reached 54, it said.

With more than 9,000 infections and nearly 200 deaths nationally, Prime Minister Shinzo Abe on Thursday expanded a state of emergency to include the entire country, urging people to stay home and businesses to close.

Pandemic to wipe out $17 billion in Japan firms’ sales: research

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!