Tourism and Investment in Japan

COVID-19 affected Honda’s financial results for FY 2019   Honda Motor Co., Ltd. is one of the world leading manufacturers of motorcycles and automobiles. Honda boasts the world's top market share for motorcycles and has created a number of well-known automobiles such as "CIVIC" and "Accord" brands.  Utilizing its advanced motor technology, Honda also provides general-purpose products including tillers, generators, snow throwers, outboard engines, and lawnmowers to customers worldwide.  Honda has been recognized by Japanese investors as one of the most excellent investment destinations with its high technology, profitability and stable financial base. It is also well known to locals in the Chubu region because it started the first full-fledged international racing course in Japan in Suzuka, Mie prefecture.  In the fiscal year ending March 2020, consolidated revenues were down 6.0% year on year to 14,931.0 billion yen, and operating income was down 12.8% to 63

Japan restarts economic activities cautiously under “ New normal” lifestyle On May 25, the Japanese government finally has lifted the state of emergency for the entire country including Tokyo. Daily new infections have been trending down and the government decided to lift about 50 days long emergency.  The first step for “new normal” aiming to contain the virus while revitalize economic and social activities has been started. However, it will take long time until the economy returns to pre-outbreak level. Japan’s economy needs long period of time to come back to life The national statistics showed that Japanese economy has already been dented to unprecedented degree. The Cabinet Office announced on May 18 that the preliminary GDP forecast for January to March 2020 was minus 0.9% from the previous quarter, and minus 3.4% on an annualized basis at seasonally adjusted value in real terms excluding the effect of price changes. It was the second consecutive quarter of negative gr

At-home consumption increased but market contraction dragged down profits Geo Holdings Corporation, located in Aichi prefecture, provides DVD rental service and second hand merchandises including used smartphones. The company has recently been expanding used smartphone business taking advantage of a related law revision in October 2019 which is expected to expand used smart phone market.  On May 11, Geo Holdings Corporation announced its consolidated financial results for the fiscal year ending March 2020. Although sales increased 4.3% year on year to 305 billion yen, operating income fell by 36% to 10 billion yen, ordinary income decreased 38.9% to 10.7 billion yen and net income was down 62.7% to 3.8 billion yen.  Demand from at-home consumption grew due to the spread of new coronavirus infections, but the contraction of the rental market for DVDs and videos gave negative impacts on its profits. In addition, as sales of downloaded game software expanded, Geo Holdings’ sal

Asahi-Seiki Manufacturing contributes the Chubu aerospace industry Asahi-Seiki Manufacturing , Co., Ltd. founded in 1953 is headquartered in Owariasahi City, Aichi Prefecture. It manufactures precision metal products, press machines, spring forming machines, aircraft parts, etc.  In particular, the company demonstrates its fabulous processing and quality control technology in manufacturing products for the aerospace-related industry whose development is extremely remarkable in the Chubu region.  Asahi-Seiki Manufacturing has been providing products for passenger aircrafts, helicopters, space rockets, etc. which require extreme high accuracy and durability for parts used in. The company is also known for producing the wing parts of the first domestic jet passenger aircraft, the Mitsubishi Space Jet. Asahi-Seiki Manufacturing is promoting automation in highly skilled labor thought to be difficult to automate so far. Asahi-Seiki Manufacturing announced financial results for

KOA's growth possibilities in EV market as the world’s leading manufacturer of resisters KOA is an electronic parts manufacturer headquartered in Nagano Prefecture. More than 80% of its sales are made up of resistors, which are indispensable for electronic circuits.  KOA has the world's leading share in the production of resistors and its products are mainly used in automobile related. Previously, it manufactured products for audio equipment and personal computers, but in recent years it has taken a strategy to strengthen the production of automobile-related products. Nowadays, about 40% of the company's sales are related to automobiles.  Demand for KOA’s resistors for automobiles will further increase as electric vehicles and autonomous driving prevail. Although the company currently faces harsh business environment due to the global car sales stagnation against the backdrop of the spread of new coronavirus infection and the US-China trade friction, KOA will regain i

TOYOTA's sales declined due to the COVID-19 On May 12, Toyota announced its financial results for the year ending March 31, 2020. Sales decreased by 1% from the previous year to 29,929.9 billion yen, and operating income decreased by 1% to 2,442.8 billion yen.  Due to the spread of new coronavirus infections, the car sales decreased by 127,000 pushing down operating income by 160 billion yen.  At the online financial conference held on May 12, President Akio Toyoda revealed a serious recognition that the impact of the COVID-19 is far greater than that of Lehman crises. Dented badly but remain in the black With regard to the business results for the fiscal year ending March 2021, global sales of   TOYOTA group as a whole will be 8.9 million units, down 14.9% from the previous year, and the operating income will decline by around 80% to 500 billion yen, due to the impact of the new coronavirus on global economy.  Although Toyota is gradually restarting production in

COVID-19 pushed down Japan’s industrial production in March The Ministry of Economy, Trade and Industry announced on April 30 that the industrial production index for March was 95.8, down 3.7% from the previous month. It was the lowest level since January 2013. Corporate activities stagnated due to the spread of new coronavirus infections.  The production for March was pushed down because some factories stopped operations to adjust production volume. Production fell in a wide range of industries including the automobile industry and chemical industry. Production index fell in 13 industries out of 15.  The shipment index fell 5.0% to 94.0, the first drop in four months. It is the lowest level since 2013, when comparable data is available. Shipments for export were influenced by the infections and declined in 14 industries such as the automobile industry and the manufacturing machinery industry including semiconductor manufacturing equipment.  The inventory index increased by 1.

COVID-19 has left tourist spots deserted Although Japan is in the middle of the Golden Week, a stretch of Japanese holidays, popular tourist destinations around the country are eerily quiet with people refraining from going out to contain COVID-19, the new coronavirus.  Restaurants in tourist areas are heavily hit because they can't continue operating as they were. Even at the very popular tourist spots usually so crowded that the shoulders would be touched each other during the Golden Week, there are few tourists now visiting.  Although there are locals who enjoy jogging and walking, most restaurants and souvenir shops have closed with shutters down. The lodging industry is also at stake. Last month, a hotel management company went into a large scale bankruptcy with a total debt of about 16 billion yen.  Due to such a sharp drop in travel demand, travel companies are forced to halt their businesses. Major travel companies such as JTB and HIS are temporarily closed at

AISIN SEIKI, the world largest manufacturer of automatic transmissions AISIN SEIKI Co., Ltd. headquartered in Kariya, Aichi Prefecture, is a leading auto parts manufacturer with the world's top market share in automatic transmissions.  The company develops car parts such as transmissions and brakes, as well as car navigation systems and parking assist systems. The company also develops a cogeneration system for residential use. Although it is mainly affiliated with Toyota Mortar, its advanced products and technological development enable the company to expand its business with automakers around the world. On April 30, Aisin Seiki announced its consolidated financial results for the fiscal year ending March 2020. Net income was 24 billion yen, a 78% decrease from the previous fiscal year. Spreading new coronavirus infections amid weak demand for new cars in China and other countries caused plummeting demand for auto parts.  As for the January-March period of 2020, net i

Denso affected by COVID-19 and recall costs On April 30, Denso Corp, a key supplier to Toyota Motor, announced its consolidated financial results for the year ending March 2020.  According to the announcement, net income was 68 billion yen, a 73% decrease from the previous year. Recall costs of automobile parts increased amid falling production and operating efficiency due to the spread of new coronavirus infections.  Revenue decreased 4% to 5,153.4 billion yen. Plummeting production by automobile makers dragged down Denso’s sales.  Operating profit fell 81% to 61 billion yen. In spite of efforts to streamline production and reduce costs, operating costs decreased approximately 43 billion yen caused by declining operating rate.  Furthermore, large scale recall costs of fuel pump parts used in Toyota automobiles damaged the results by about hefty 222 billion yen, more than five times of impact given by COVID-19.  The full-year consolidated financial forecast for the f