Listed major companies are announcing their business performance for fiscal 2011. As a whole, they are expected to show the first decrease in recurring profits in three years, mainly due to the effects of the 3/11 disasters, floods in Thailand, the strong yen and rises in the prices of imported raw materials, including fuel, and the European sovereign debt crisis.
Although export-oriented firms suffered, some companies keyed to the domestic market enjoyed strong sales. This suggests that if companies are keen to the needs of consumers and develop appropriate goods and services, they can make healthy profits.
After the 3/11 disasters, convenience stores showed their usefulness. Four major convenience store chains achieved higher operating profits in fiscal 2011 than in the previous year. Three of them even achieved record operating profits. This exceptional performance is attributed to an increase in the number of women and senior citizens who buy fresh food and daily necessaries in convenience stores. All major mobile phone firms also enjoyed increased profits thanks to strong sales of smartphones, which boosted data communication-related profits.
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