Japanese companies are lowering earnings forecasts for the fiscal year as they factor in the cost of additional import tariffs imposed by the US.
Construction machinery maker Komatsu says operating profit for the year through March 2026 is expected to fall by more than 94 billion yen, or 662 million dollars. It says sales may decline about 52 billion yen, which is the equivalent of 365 million dollars.
Komatsu says the tariffs introduced by President Donald Trump will push up the cost of imported machinery at its US subsidiary. About 50 percent of the company’s products sold in the US are imported.
Hitachi Construction Machinery repeats the theme, saying the tariffs could lower operating profit by 30 billion yen, or 210 million dollars.
The company’s North America business accounted for 23 percent of total sales in fiscal 2024. Officials say they will need to raise prices and reduce costs.
Electronics giant Hitachi says its cutting its net profit forecast for the year ahead by about 35 billion yen, or 245 million dollars.
However, despite lowering its forecast Hitachi still expects to book a record net profit of 710 billion yen, or 5 billion dollars. That’s thanks to a strong outlook for its infrastructure operations and others.
Hitachi says it will dilute the effects of the US import tariffs by focusing on buying materials and manufacturing products within the areas where they will be sold.
AloJapan.com