Listed firms likely back in the black

The combined pretax profit of nonfinancial companies listed on the first section of the Tokyo Stock Exchange appears to have swung back into the black in the first half of fiscal 2009, according to data compiled by Nikko Cordial Securities Inc.

The 497 nonfinancial firms on first section that close their books in March reported as of last Friday that they had booked a combined pretax profit of ¥3.76 trillion, compared with a loss of ¥330 billion in the second half of fiscal 2008, Nikko said.

Companies are improving their earnings against the backdrop of workforce cutbacks, solid exports to China and government incentives for purchases of environmentally friendly automobiles and household appliances, analysts said.

The 497 companies account for some 37 percent of all firms listed on the TSE's first section that close their books in March. Leaders in major sectors are among them, including the electrical machinery and steel companies.