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Economy

Japan Inc. overcomes falling revenue to log record profit

Non-manufacturing sector flourishes despite strong yen

Japan Inc.'s record profit came despite falling revenue from a stronger yen.

TOKYO -- Corporate Japan delivered a record profit for fiscal 2016 despite headwinds from a strong yen that pushed down sales, as trading houses rebounded from a resources plunge and communications companies rode the smartphone boom.

Listed companies' net profit climbed 18%, the first increase in two years, as 461 of these businesses logged records, according to a Nikkei survey of 1,555 companies that close their books in March. Sales dipped 3% as the rapid appreciation of the home currency ate into overseas revenues. This marks the first time that Japan Inc. has reported a record profit despite lower sales since consolidated reporting began in earnest in the 2000s.

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