Japan Exports Plunge; Advantest Cuts Staff

123jump.com Staff
25 Feb, 2009
New York City

Japan exports plunged in January by 45.7% to 3.5 trillion yen and recorded its highest monthly trade deficit in twenty eight years. Advertising spending falls 4.7% in 2008. Advantest Corp, the maker of chip assembly and testing equipment forecasted 60% decline in sales and plans to cut 1,200 jobs.

[R]5:00AM New York, 7:00PM – January exports plunged in Japan by 45.7% to 3.5 trillion yen and recorded its highest monthly trade deficit in twenty eight years. Advertising spending falls 4.7% in 2008. Advantest Corp, the maker of chip assembly and testing equipment plans forecasted 60% decline in sales and cut 1,200 jobs.[/R]


In Tokyo trading, the benchmark stock index rose 2.7% despite exports plunged record 45.7% in January.

Investor sentiment was boosted by a weakening yen, which fell to 97.33 against the dollar from 95.32 yesterday.

In Tokyo trading Nikkei 225 index rose 2.7% or 192.66 to 7,461.22, and the broader Topix Index increased 2.1% or 15.34 to 745.62.

In the first section of the Tokyo Stock Exchange 10.3 billion shares worth 628 billion yen were traded and in the second section 131million shares valued at 1.5 billion yen changed hands.

Of the Nikkei 225 index stocks, 159 rose, 54 declined, and 12 were unchanged. Fuji Heavy Industries led advancers in the index shares with a rise of 13.1% followed by Hitachi Construction Machinery of 10.1%.

Exports Decline 45.7%]

Japan’s Ministry of Finance reported today that the country’s exports fell 45.7% to 3.5 trillion yen in January from a year earlier as shipments of automobiles and consumer electronic goods slumped.

Imports however fell 31.7% to 4.4 trillion yen, yielding a trade deficit of 952.6 billion yen, the largest since 1980.

Exports to the U.S., the largest export market dropped 53% and to the European Union slipped 47.4%.

In addition, exports to China and Asia dipped 45.1% and 46.7% respectively.

Advertising Spending Falls 4.7% in 2008

Asahi News reported today that estimates from Dentsu showed that the country’s advertising spending dropped 4.7% in 2008 from the comparable year ago period.

Newspapers showed the biggest drop, falling 12.5% to 827.6 billion yen, magazine advertising spending shed 11.1% to 407.8 billion yen, radio dipped 7.3% to 154.9 billion yen and TV declined 4.4% to 1.9 trillion yen.

Internet advertising had 10.4% of the market share.

Gainers & Losers

Fuji Heavy Industries led advancers in the Nikkei 225 index shares with a rise of 13.1% followed by increases in Hitachi Construction Machinery of 10.1%, in Credit Saison of 9.5%, in Resona Holdings of 9.4%, and Kawasaki Heavy Industries of 9.3%.

Exporters rose after the yen weakened to 97.33 against the dollar from 95.32 yesterday. Sony advanced 8.1% and Sharp increased 8%.

Hokuetsu Paper led decliners in the Nikkei 225 index shares with a drop of 4.9% followed by losses in Mitsui Mining & Smelting 4.9%, in CSK Holdings Corp. of 4.2%, in Sumitomo Metal Mining of 4%, and Toho Zinc of 3.8%.

Advantest Corp Forecasts a Net Loss

Advantest Corp. reported today that it forecasts a net loss of 78 billion yen from a profit projection of 16.5 billion yen for the year ending March 31 as net sales are expected to fall 59% to 75 billion yen previously projected.

The company also projects operating loss of 50 billion yen from 22.7 billion yen in 2007.

Advantest Corp, the maker of electronic chip equipment said it expects the business environment in the semiconductor business will worsen precipitously and will be taking pro-active measure to reduce costs and restrain capital expenditure.

The company plans to cut the number of employees by 1,200 to 3,400 by March 31 through non-renewal of contracts of part-time employees and voluntary retirement of full time employees. The company also aims at reducing directors’ and officers remuneration by 50% to 60% and cease payment of bonuses.

Advantest Corp intends to lower fixed costs by 25 billion yen every year after the current fiscal period.