Japan's Economic Indicators and Nuclear Power Plant News

Strategic Insights -

Despite the recent Great East Japan Earthquake, Toyota Motor Corp. has reported a 95% surge in group net profit for the year through March 2011, driven by strong sales in emerging markets and cost cuts. However, other Japanese companies are facing challenges as Chubu Electric Power Co. prepares to shut down its Hamaoka nuclear power plant, citing concerns about safety and the potential impact on local manufacturers. Additionally, a decision by Chubu Electric Power Co. to suspend its Hamaoka nuclear power plant has raised alarms among regional manufacturers. Meanwhile, other companies are taking steps to improve their disaster preparedness, such as mobile phone carriers reinforcing their networks.

Key Takeaways:

  • Toyota Motor Corp. reported a 95% surge in group net profit for the year through March 2011, reaching 408.1 billion yen, driven by strong sales in emerging markets and cost cuts.
  • Chubu Electric Power Co. will shut down its Hamaoka nuclear power plant by Thursday, citing concerns about safety and the potential impact on local manufacturers.
  • The decision by Chubu Electric Power Co. to suspend the operation of its Hamaoka nuclear power plant has alarmed many manufacturers in the Chubu region.
  • Mobile phone carriers are reinforcing their networks to better deal with disruptions caused by natural disasters.
  • Chubu Electric Power Co. expressed understanding of a plan to require power companies with nuclear power stations to help Tokyo Electric Power Co. shoulder the burden of compensating victims of the Fukushima Daiichi power plant accident.
  • Japan's composite index of coincident economic indicators dropped 3.2 points on the month to 103.6 in March (2005=100), for the first fall in five months, due to the Great East Japan Earthquake.
  • Mizuho Bank officials waited almost a month before informing all branches of procedures for dealing with a glitch that crippled the bank's computer system soon after the Great East Japan Earthquake.

Statistics:

  • Japan's composite index of coincident economic indicators dropped 3.2 points on the month to 103.6 in March (2005=100).
  • Toyota Motor Corp. reported a 95% surge in group net profit for the year through March 2011, reaching 408.1 billion yen.

Sources:

  • NIKKEI DAILY, May 11, 2011
  • YOMIURI DAILY, May 11, 2011
  • ASAHI DAILY, May 11, 2011
  • Asia Pulse, May 11, 2011, 17:18 ms