Toyota Recalls Hybrids; SMFG Net Doubles

Darlington Musarurwa
09 Feb, 2010
New York City

Debts by failed companies in Japan rose 838 billion yen in January as Japan Airline filed bankruptcy. Toyota Motor Corp agreed to recall 223,068 hybrid cars in Japan. Sumitomo Mitsui Financial quarterly profit doubles but leaves annual outlook unchanged.

[R]5:00 AM New York, 7:00 PM Tokyo - Debts by failed companies in Japan rose 838 billion yen in January as Japan Airline filed bankruptcy. Toyota Motor Corp agreed to recall 223,068 hybrid cars in Japan. Sumitomo Mitsui Financial quarterly profit doubles but leaves annual outlook unchanged.[/R]

The benchmark stock indexes in Tokyo decreased 0.2% on worries the rising budget deficits in Europe will compound Europe financial woes and impact on global economic recovery.

The yen climbed to 89.47 against the dollar from 98.26 yesterday.

In Tokyo trading Nikkei 225 Stock Average fell 0.2% or 18.92 to 9,932.90, and the broader Topix Index decreased 0.2% to 881.57.

In the first section of the Tokyo Stock Exchange 10.2 billion shares worth 642 billion yen were traded and in the second section 371 million shares valued at 2 billion yen changed hands.

Of the Nikkei 225 index stocks, 74 advanced, 138 dropped, and 13 were unchanged. Furukawa Electric led gainers in the index shares with a rise of 4.6% followed by Hitachi Construction Machinery jumping 4.1%.

Debts Failures Soar to 838 billion yen in Jan

Tokyo Shoko Research reported today that debts left by failed companies tripled to 838 billion yen in January from a year ago weighed by the collapse of the largest carrier Japan Airlines.

However, corporate bankruptcies decreased 21.8% to 1,063 in Japan, falling for the sixth month in a row on government stimulus interventions.

According to the report, JAL contributed 89.2% of the total liabilities.

Of the 10 survey industries, eight saw increases in bankruptcies, while the information and telecommunications services and agriculture, forestry, fishing and mining industry dropped.

In addition, major corporate failures involving debts of at least 1 billion yen decreased 37.3%, while companies employing only four or fewer workers accounted for 66.3% of the total bankruptcies.

Toyota to Recall 223,068 Prius

Toyota Motor Corp. today notified the transport ministry that it intends to recall 223,068 Priuses and other hybrids in Japan over a brake problem.

The recall will cover 199,666 Priuse models produced through the end of January, 10,820 Sai hybrids and 12,423 Lexus HS250h hybrids and 159 plug-in Prius models.

Sumitomo Mitsui Net Profit Rises 197% in Dec

Sumitomo Mitsui Financial Group reported today that profit in the nine months ended December 31 soared 197% to 247.8 billion yen from the comparable year ago period.

The lender projects that full year profit in the fiscal year through March 31 will remain at 220 billion yen from a loss of 373 billion yen a year earlier.

Nikkei Movers

Pioneer Corp led the decliners in the Nikkei 225 Stock Average with a loss of 8.6% followed by losses in Mitsubishi Materials Corporation of 5.8%, in Marui Group Co Ltd of 5.0%, in Dowa Holdings Co Ltd 4.2% and in The Japan Steel Works Ltd 3.9%.

The Furukawa Electric Co., Ltd led gainers in the Nikkei 225 Stock Average with a rise of 4.6% followed by gains in Hitachi Construction Machinery Co., Ltd 4.0%, in Ebara Corp of 3.4% and in Toyota Motor Corporation of 3.0%.

Other Movers

Hoya Corp the lens maker decreased 1.8% to ¥2,274.00.

Koito Industries Ltd plunged 33.4% to ¥159.00 after the supplier of seats used in Airbus SAS and Boeing Co. planes, The Japanese Transport Ministry on Monday issued a business improvement order to Koito Industries Ltd. for falsifying fire-and shock-resistance data and making unauthorized specification changes for its aircraft seats over more than a decade.

Mazda Motor Corporation decreased 2.2% to ¥222.00 after the company and Suzuki Motor Corp raised their annual profit forecasts.

Sumitomo Mitsui Financial Group, Inc rose 2.0% to ¥2,831.00 after the company reiterated its forecast for a fiscal 2010 net profit of ¥220 billion.

Toyota Motor Corporation climbed 2.9% to ¥3,375.00 after the company told Ministry of Transportation that it will recall 223,068 hybrid vehicles in Japan, including its latest Prius model and three other models, the Sai, Lexus HS250h and Prius Plug-In Hybrid to repair brakes.