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Major Japan firms expect FY2023 net profit to rise 4% to record high

Major Japanese companies are expected to see a 4% rise in combined net profit to ¥42.9 trillion ($307 billion) this fiscal year, on course to log a record profit for the third consecutive year led by the auto sector, according to the latest tally by a securities house.

The projected profit for the current fiscal year through March 2024 will eclipse an aggregated net profit of ¥41.3 trillion in the last fiscal year, according to SMBC Nikko Securities’ data on earnings forecasts at about 1,400 listed companies on the Tokyo stock market.

Among the market’s 33 sectors, net profit in the transportation equipment sector, which includes automakers, is forecast to grow 11.4% in fiscal 2023 as a chip supply crunch eases and pent-up demand in the post-pandemic period revs up vehicle production.