News On Japan

From trains to baths, Japan's companies slash earnings outlook

Feb 23 (Nikkei) - The novel coronavirus outbreak has forced as much as 56 Japanese companies to disclose that they will downgrade earnings forecasts or expect a significant slow down of sales, according to credit research specialist Tokyo Shoko Research.

The scale is only expected to get worse, as 186 companies who have not changed their forecasts for now are worried about future effects, according to research as of Friday.

Some companies struggled to conduct auditing and postponed the announcement of earnings or business plans.

Consumption was hit hard by a massive decrease of inbound tourists as China canceled group tours.

"Bookings have started to decline at our hotels," said railway and retail conglomerate Keio Corp. The company downgraded the sales forecast for the current fiscal year by 4 billion yen, or $35 million. On top of foreign tourists, Japanese consumers also now travel less for business and leisure.

Cosmetics maker Kao set its sales forecast as 1.51 trillion to 1.53 trillion yen, avoiding a specific figure for the first time. "There are many uncertain factors such as demand from inbound tourists," said its President and CEO Michitaka Sawada.

Bathers relax at a bath operated by Japan's Gokurakuyu Holdings in Changchun, in northeastern China. The company has halted operations at all its facilities in China.

Uncertainties also loom for companies who have operate consumer businesses in China. Japan's largest spa operator Gokurakuyu Holdings, which operates Japanese-style hot springs or onsen, halted operations for all of its facilities in China by Thursday. The company was expecting year-on-year increase of 6% in its sales for this fiscal year, but has scrapped the forecast without setting a new figure.

Manufacturing companies are suffering from production delays in China. Sourcenext's production of its translation device Pocketalk has been crippled. The device accounts for half Sourcenext's revenue. The company had to downgrade its sales forecast.

The virus has also affected companies' disclosed earnings and midterm management plans.

News On Japan
POPULAR NEWS

Speculation about Trump's new administration, set to take office in January, has already begun. Among the potential appointees is Senator Bill Hagerty, a former U.S. ambassador to Japan, who is being considered for Secretary of State.

A monkey has been spotted within the premises of Tokyo Disney Resort after it had moved south along the coast from Urayasu City, where it was seen on November 4th.

A whale shark that mysteriously appeared in a river has been identified as one previously kept at an aquarium in Osaka Prefecture.

Keio Railway launched a pilot program on Wednesday for touch payment ride services using credit cards and similar methods across all its stations.

A new trend has emerged in Thailand, known for its friendly ties with Japan, where Japanese-style townscapes are being faithfully recreated.

MEDIA CHANNELS
         

MORE Society NEWS

A relaxation spa owner in Tokyo’s Setagaya Ward has been arrested on suspicion of committing indecent acts against female clients, with authorities estimating over 400 potential victims.

In Japan, the 'Suzuki' surname ranks as the country's second most common, following 'Sato.' The origins of this widespread name can be traced back to Kumano faith and its spread across the nation, with roots at the Fujishiro Shrine in Wakayama Prefecture's Kainan City.

Japan’s traditional sake brewing has taken a step closer to being recognized as an Intangible Cultural Heritage. UNESCO's Evaluation Body, the United Nations Educational, Scientific and Cultural Organization, has recommended that Japan’s “traditional sake brewing” practices, including sake, shochu, and awamori production, be registered as an Intangible Cultural Heritage, according to Japan's Agency for Cultural Affairs.

In a residential neighborhood in Hiroshima Prefecture, a suspicious man was recently spotted leaning close to other people's laundry, carefully examining each item. His target: the clothing of a junior high school girl.

A series of robberies and thefts in the Kanto region, believed to be linked to 'dark part-time jobs,' have reached a total of 23 cases, according to police officials. Some of these incidents may involve the same suspects.

On Culture Day, November 3rd, manga artist Tetsuya Chiba, 85, expressed his joy at receiving the Order of Culture from the Emperor, saying, 'I believe Osamu Tezuka would be the happiest for me right now.'

A 42-year-old man has been arrested for allegedly stealing a business bag containing cash and credit cards from an overhead rack inside a Yamanote Line train at JR Ikebukuro Station in early August.

A man found to be cycling under the influence of alcohol has been charged in Osaka City, western Japan, becoming the first to be penalized in Osaka Prefecture under newly tightened traffic regulations. (NHK)