1. Many Japanese corporations experienced a decline in profits for the first half of fiscal 2025, particularly those in auto manufacturing and steel industries due to US import tariffs.
2. The combined net profit of 503 companies decreased by 0.3%, amounting to approximately 98 billion dollars, with the automotive and transportation sectors seeing a 9.1% drop.
3. Conversely, semiconductor and electrical-device manufacturers saw a significant increase in profits (36.7%) due to increased demand related to AI, data centers, and a weak yen. The overall corporate profits are expected to decline for the first time since 2020 during the pandemic. However, things are looking brighter for the full-year performance as 30% of the companies have revised their earnings forecasts upwards, partially due to Washington's agreement to reduce tariff rates on automobiles and other imports from Japan.