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Business trends

Japan Inc. profit set to sink 36% this year, but rebound on way

60% of companies expect sliding income and revenue, with cost cuts easing losses

The sidewalk in front of Mitsukoshi's flagship department store in Tokyo is nearly deserted in early May. (Photo by Rie Ishii)

TOKYO -- Japan's listed companies are headed for their worst downturn since the global financial crisis, with aggregate net profit expected to shrink by 36% for the current fiscal year, a Nikkei analysis shows.

The drop is based on projections from publicly traded corporations. With the coronavirus hurting the global economy, 60% of businesses predict lower revenue and profit for the year. Yet many companies anticipate that earnings will pick up later in the financial year and that the effects from the pandemic will wane.

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