70% of the financial results of listed companies are undecided for the current fiscal year
As a listed company, the financial results for the fiscal year ending March were in full swing, and almost half of the companies that finished the announcement were in a severe situation with a decline in profits due to the spread of the new coronavirus infection. Moreover, 70% of the companies do not know when the spread of infection will end, so the business outlook for this fiscal year is uncertain.
At this time, the press club on the Tokyo Stock Exchange is crowded with people in charge of financial reporting materials, but most of the time it is quiet because most companies wait to avoid the so-called "three denseness". I will.
Summing up the financial results of 123 companies that SMBC Nikko Securities had announced by the 29th, recurring profit of 58 companies, which is close to half, decreased from a year ago. Recurring profit decreased by 10.8% compared to the previous year as a result of the number of companies whose sales fell due to the spread of new coronavirus infections and companies which lost their value due to a sharp decline in stock prices and posted a loss. Above all, the reduction rate is increasing in aviation, land transportation, and electrical equipment.
In addition, although the earnings forecast for this fiscal year is usually announced in the financial statements, 88%, or 70% of the total, is in an unprecedented situation because it is unclear when the spread of infection will stop.
At SMBC Nikko Securities, many companies have postponed the settlement of accounts due to the spread of infections, and we believe that if all companies complete their settlements, the overall performance will worsen.