« 3Dプリンター 過度な規制は普及を妨げる | トップページ | これからの時代、クラウドサービスも現地化をめざします »

2014年5月12日 (月)

企業好決算 成長持続へ経営改革緩めるな

The Yomiuri Shimbun 7:01 pm, May 11, 2014
Continue pushing corporate reform to ensure nation’s economic growth
企業好決算 成長持続へ経営改革緩めるな

Buoyed by the weakening yen and a surge in demand just ahead of a hike in the consumption tax rate, corporations one after another reported record high profits in favorable settlements of account for fiscal 2013.

Companies should keep a tight rein over corporate management reform with the goal of attaining sustainable growth.

Late last week saw a peak in the number of companies listed on the First Section of the Tokyo Stock Exchange that publicized their consolidated settlement of accounts for the business year ending March 2014. Overall, the listed companies are expected to have posted a year-on-year increase in their profits for the second consecutive year.

Benefiting from the yen’s depreciation over the past year or so that resulted from Abenomics, the economic policies of the administration of Prime Minister Shinzo Abe, the earnings environment for export-oriented companies has greatly improved.

Because of the asset growth from higher stock prices and a surge in last-minute demand before the consumption tax rate hike, personal spending has been robust, greatly benefiting companies that depend on domestic demand.

Symbolic of this trend was Toyota Motor Corp., which registered a new high in its profits for the first time in six years.

Toyota’s operating profit, or the profit earned from its normal core business operations, reached ¥2.3 trillion for the business year, surpassing that in the business year ending March 2008, before the collapse of the U.S. investment bank Lehman Brothers. The Toyota group’s vehicle sales grew in North America as well as in Japan, surpassing the 10 million mark for the first time for any automaker.

Toyota should take credit for putting itself on a robust growth path again, after overcoming the adverse effects of the Lehman Brothers bankruptcy and the Great East Japan Earthquake.

Panasonic back

Panasonic, meanwhile, made a V-shaped recovery by making its first annual profit in three years after recording massive deficits for two consecutive years.

The success can be attributed to the electronics giant’s bold reform of “selection and concentration,” in which the firm withdrew from the sagging plasma TV business and focused on automobile-related and housing business.

SoftBank Corp. surpassed the ¥1 trillion mark in operating profits for the first time, while East Japan Railway Co. posted a record-high profit on the back of increased demand for travel. In addition, a conspicuous number of department stores and trading houses report good earnings in their settlements.

It is reassuring that companies in wide-ranging fields saw rapid improvement in their earnings. Realizing a virtuous economic circle is essential by allowing good business performances to result in higher wages and more jobs, which in turn will fully rehabilitate the Japanese economy.

Sony Corp., on the other hand, failed to exploit the favorable business environment. The company expanded the estimated scale of its net loss to ¥130 billion, cutting its projected earnings for the third time in fiscal 2013 and underscoring its sagging profit-making prowess.

Nintendo Co. also registered operating deficits for the third consecutive year, mainly due to the proliferation of smartphones and the shrinking game console market. The company plans to rebuild its business by game software improvement and development, but it inevitably faces a thorny path ahead.

The success of a company hinges on how well it can cultivate a new market by capturing the needs of consumers before anyone else to develop competitive products. No matter how excellent a corporation is, it is bound to hit a wall if it takes a delayed response in its business strategy. These loss-making companies should provide weighty lessons for other corporations.

New challenges are now confronting Japanese industries. There are concerns about the ramifications of drops in sales after the consumption tax rate was raised in April as well as a respite in the effect of the depreciating yen. Businesses should be on alert for any slowdown in the emerging economies, including the Chinese economy.

It is indispensable for corporations to further hone their business strategies and fight through these trials.

(From The Yomiuri Shimbun, May 11, 2014)


« 3Dプリンター 過度な規制は普及を妨げる | トップページ | これからの時代、クラウドサービスも現地化をめざします »





« 3Dプリンター 過度な規制は普及を妨げる | トップページ | これからの時代、クラウドサービスも現地化をめざします »