The combined ordinary profits of Japanese companies have set a new record for the April-to-June period. The weaker yen and a growing number of overseas visitors helped push up the overall figure.
The Finance Ministry says quarterly profits excluding those from financial and insurance sectors, totaled 35.7 trillion yen, or almost 245 billion dollars. That’s a 13.2 percent jump in yen terms from a year earlier.
Manufacturers saw their profits rise 13 percent, with the value of carmakers’ export earnings boosted by the yen’s weakness.
Semiconductor production was another sector that performed strongly.
Orders rose due to an increase in construction of data centers driven by the rise of artificial intelligence technology.
Profits at non-manufacturers also rose by 13.3 percent.
Services businesses such as hotels and restaurants benefited from the wave of foreign visitors to Japan. Increased orders for big construction projects also helped push up the figure.
Meanwhile, the cash reserves held by Japanese firms hit a record 600.9 trillion yen, or 4.1 trillion dollars, in the fiscal year that ended in March. The figure excludes companies in the financial and insurance sectors.
That’s up 8.3 percent from a year earlier and marks the 12th consecutive annual increase.
Ministry officials say they will monitor whether profits will be distributed to workers through sustainable wage hikes and lead to economic growth through increased consumption.