Nearly 70% of Japanese companies see their profits hit by the Ukraine crisis: Reuters poll

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  • Almost all Japanese companies are worried about the impact of the Ukrainian crisis
  • Two-thirds fear Ukraine crisis could hurt profits
  • The vast majority are most worried about oil price spikes

TOKYO, March 17 (Reuters) – Nearly 70% of Japanese companies expect the fallout from the crisis in Ukraine to hurt their profits, according to a Reuters poll, with the majority citing soaring oil prices. oil as their main concern.

The latest Reuters Corporate survey highlighted the likelihood of more difficulties for companies in resource-poor Japan, where a weaker yen is further raising the cost of raw materials and increasing pressure on households.

A total of 69% of companies surveyed said they expected the crisis to hit their profits, with 9% of companies saying they expected a big impact.

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“As the price of goods rises, consumers tend to favor cheaper goods and services as they become more frugal,” a retailer executive wrote in the survey, which polled 500 unnamed businesses. financial between March 2 and March 11.

Some 240 companies responded on condition of anonymity.

“We are concerned about the cost of raw materials as well as currency fluctuations,” said a manager at a machinery manufacturer.

Global concerns over Russian oil supplies have pushed oil prices above $100 a barrel to levels not seen in nearly a decade and the prices of many other commodities, from metals to grains , also increased.

Meanwhile, the yen fell to its lowest level in five years at 118 to the dollar, further pushing up the price of oil and other imports for Japanese buyers.

Among companies that cited concerns about the impact of the Ukraine crisis, 63% chose oil price spikes as their top concern, while 15% cited supply chain disruptions as their top concern .

Asked which areas they want the government to focus on most, 63% of companies chose efforts to counter energy and broader price hikes, 50% chose the economic growth strategy and 43% selected COVID-19 measures.

The government plans to compile a new economic stimulus package to help ease the pain of high energy costs, the Kyodo news agency reported on Wednesday. Read more

Separately, the government has also said it will increase its gasoline subsidy for petroleum distributors to the upper limit to help ease cost pressure.

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Reporting by Tetsushi Kajimoto; Editing by David Dolan and Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

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