TOKYO - Japanese companies delivered a wave of strong earnings on August 7, with Fujikura, Recruit Holdings, INPEX and several other major groups raising forecasts as artificial intelligence investment, higher resource prices and resilient consumer demand lifted profits.
Fujikura reported one of the day's strongest results, with first-quarter ordinary profit surging 2.7-fold from a year earlier to 111.4 billion yen as demand for optical fiber and other products used in AI data centers continued to accelerate.
The cable and electronics manufacturer raised its full-year ordinary profit forecast for the year ending March 2027 by 43.4%, from 316 billion yen to 453 billion yen. The revised projection is more than double the previous year's 199.4 billion yen and would mark a fifth consecutive record. Its operating margin for the April-June quarter jumped to 26.1% from 15.3% a year earlier.
Recruit Holdings also sharply raised its outlook after quarterly profit jumped on strong growth in its HR technology business, which includes Indeed and Glassdoor.
Revenue for the April-June quarter rose 18.9% to 1.045 trillion yen, while operating profit increased 66.1% to 255.4 billion yen. Net profit attributable to shareholders climbed 67.5% to 202.6 billion yen.
Recruit raised its full-year net profit forecast by 21.2%, from 623 billion yen to 755 billion yen, which would represent a 51.9% increase from the previous year and another record result. The company benefited from higher revenue and sharply improved profitability in its HR technology operations.
INPEX raised its full-year net profit forecast to a record 510 billion yen after higher oil prices and stronger-than-expected production from the Ichthys liquefied natural gas project in Australia boosted earnings.
Japan's largest oil and gas exploration company reported first-half net profit of about 263 billion yen, up 17.7% from the previous year. Its earlier full-year forecast had called for profit of between 350 billion yen and 450 billion yen.
INPEX also increased its annual dividend forecast to 112 yen per share from 108 yen and announced plans to buy back as much as 140 billion yen of its own shares. The company said production at Ichthys had been stronger than previously expected, although crude oil sales from Abu Dhabi declined because of disruption linked to the Iran conflict.
Japan Post Bank reported a 64.8% increase in ordinary profit for the April-June quarter to 253.5 billion yen as higher interest rates and changes in its investment portfolio improved earnings.
Net profit rose 69.3% to 177.6 billion yen, while ordinary revenue increased 27.1% to 848.2 billion yen.
The bank's total assets stood at 221.4 trillion yen at the end of June, while deposits totaled 186.2 trillion yen. Its investment portfolio amounted to 218.1 trillion yen, including 42.4 trillion yen of Japanese government bonds.
ENEOS Holdings returned to a large quarterly profit as higher crude oil prices and a weaker yen boosted Japan's largest oil refiner.
Revenue in the April-June quarter rose 18.7% to 3.408 trillion yen, while operating profit surged to 482.6 billion yen, nearly 10 times the level a year earlier. Net profit attributable to shareholders reached about 415 billion yen, compared with a loss in the corresponding period a year earlier.
ENEOS also announced on August 7 that it had agreed to acquire U.S.-based TPC Holdings through an American subsidiary. The acquisition adds a corporate expansion story to the company's strong quarterly results and forms part of its effort to broaden operations beyond traditional domestic refining.
FOOD & LIFE COMPANIES, operator of the Sushiro conveyor-belt sushi chain, raised its annual earnings forecast after rapid expansion overseas drove another strong quarter.
Revenue for the nine months through June increased 24.7% to about 390.4 billion yen, while operating profit climbed 43.9% to approximately 42 billion yen. Net profit attributable to shareholders rose 47.1% to 26.5 billion yen.
The company raised its full-year net profit forecast from 30 billion yen to 31.5 billion yen, putting it on course for a third consecutive record. Overseas Sushiro operations were a major contributor, with revenue growth substantially exceeding that of the domestic business.
Kawasaki Heavy Industries raised its full-year profit forecast after first-quarter net profit nearly quadrupled.
Revenue in the April-June period rose 11.3% to 543.6 billion yen, while pretax profit more than doubled to 34.8 billion yen. Net profit climbed 3.7-fold to 15.7 billion yen.
The heavy machinery and defense group raised its full-year net profit forecast from 110 billion yen to 115 billion yen, which would represent a 6.3% increase from the previous year and another record. Kawasaki Heavy has been benefiting from higher defense-related demand as well as growth in aerospace, energy and marine businesses.
Obayashi reported a 98.2% increase in first-quarter ordinary profit to 36.4 billion yen, supported by stronger profitability in construction projects.
Its operating margin rose to 5.2% from 3.0% in the same quarter a year earlier. The result represented about 20% of the major contractor's full-year ordinary profit target of 183 billion yen.
Open House Group reported higher sales and earnings as a recovery in its condominium business strengthened results.
Revenue for the nine months through June increased 8.9% to more than 1 trillion yen, while operating profit rose 18.3% to 121 billion yen. Ordinary profit increased 18.1% to 116.1 billion yen.
The property developer set its full-year ordinary profit forecast at 170 billion yen and raised its annual dividend forecast by 5 yen to 205 yen per share. Profitability in the April-June quarter also improved, with its operating margin rising to 10.9% from 9.6%.
McDonald's Holdings Japan raised its full-year outlook after posting stronger first-half profits despite only modest sales growth.
Sales for the January-June period increased 0.4% to about 204.1 billion yen, but operating profit jumped 15.2% to approximately 30.2 billion yen as cost controls and improved gross margins supported earnings. Net profit rose 17% to about 19.7 billion yen.
The company raised its full-year ordinary profit forecast by about 2%. Same-store sales also continued to rise, extending a long-running period of year-on-year growth at its Japanese restaurants.
