News No wage hikes despite solid profits

[thomas]

Why am I not surprised?

Solid profits at major Japanese companies are unlikely to translate into near-term wage hikes due to the looming global recession. Companies from automakers and components suppliers to energy companies reported increased earnings for the April-June quarter and revised upward full-year projections, driven by the yen's slide.

Toyota Motor Corp. earlier this month raised its net profit forecast for the year to March 2023 to 2.36 trillion yen ($17.7 billion) from its previous forecast of 2.26 trillion yen.

Honda Motor Co. also lifted its full-year operating profit forecast recently due in part to the yen's weakness, while Subaru Corp. and Mitsubishi Motors Corp. reported strong growth in net profit for the three months that ended in June.

Video game giant Nintendo Co. posted a record net profit of 118.98 billion yen for the three-month period, as the weaker yen raised its overseas profits, offsetting sluggish sales of Switch consoles amid a chip shortage.

The BOJ says higher salaries should help spur consumer spending and eventually raise prices in a sustainable manner. It sees the current hikes as temporary and caused by external factors.

Japan firms' earnings momentum unlikely to bring hoped-for wage hikes - The Mainichi

TOKYO (Kyodo) -- Solid profits at major Japanese companies in recent earnings reports are unlikely to translate into near-term wage hikes in broad sec

mainichi.jp