Teikoku Databank (TDB) issued the results of the first-ever survey on corporate earnings that focuses on the three quake-ravaged prefectures.
Teikoku Databank (TDB) extracted from its corporate profile database “COSMOS2” (containing data on 1.44 million companies) and analyzed 52,002 companies that are headquartered in one of the three affected prefectures (Iwate, Miyagi and Fukushima) and have publically announced their earnings for 2008 through 2012.
Nearly three years have passed since the Great East Japan Earthquake, which hit Japan in March 2011. Cumulative recovery budgets have reached approximately 23 trillion yen, and reconstruction works are underway to build infrastructure and homes in the quake-hit regions and surrounding areas. Public-works projects and emergency economic measures aimed at the recovery and rebuilding of affected areas have boosted construction demand and driven retail, service and other industries, and the earnings of corporations in the three quake-damaged prefectures are in a generally upward trend.
Survey findings summary:
- Total sales in the three prefectures amounted to 26,644 billion yen in 2012, up 7.3% from the previous year. The figure indicates a recovery to the pre-quake level.
- Among the three prefectures, Fukushima saw corporate earnings dip below the 2008 level due to the negative impact of the nuclear disaster, and its economy is slower to pick up as compared to the other two prefectures.
- In 2012, approximately 40% of companies reported earnings growth in all three prefectures. Benefiting from the special recovery demand, Miyagi saw 46.0% of its companies report an increase in earnings.
- In 2012, more than 80% of companies were in the black in the three prefectures combined.
- An industry breakdown found that the earnings growth trend was more prominent in the construction, retail and service industries.
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Source: TDB Japan