News On Japan

Panasonic joins ailing Japan giants

Sydney Morning Herald — 2012-02-03 23:41:47

Japan's Panasonic Corp warned of a record annual $US10.2 billion net loss, joining beleaguered rivals Sony and Sharp in a sea of red ink as they struggle to fix their broken TV businesses and show they have not lost their way. Panasonic's forecast loss of 780 billion yen ($US10.2 billion) for the year to March dwarfed expectations, and is almost all due to restructuring charges and writedowns for its Sanyo Electric unit. Sony on Thursday pressed its reset button after warning of a bigger-than-expected annual loss, announcing that Kazuo Hirai will take over from Stringer as CEO in April, triggering an 8 per cent jump in its share price on Friday, its biggest one-day per centage gain in almost a year. (Sydney Morning Herald)

NHK to sell relay stations to Softbank

Japan Times — 2012-02-03 23:18:40

NHK is in talks to sell some 1,050 analog broadcasting relay stations it no longer uses to Softbank Mobile Corp., sources said. The mobile phone service provider will use the stations - rendered obsolete by the nationwide switch to digital broadcasting last July - mostly as cell towers in mountainous areas because of complaints about reception in rural areas, the sources said Thursday. By improving its network, the carrier hopes to gain an advantage in the competition for radio bands for next-generation, high-speed data communications that might be allocated by the Internal Affairs and Communications Ministry later this month, they added. (Japan Times)

Hitachi to reorganize business structure

Reuters — 2012-02-03 11:48:13

Hitachi Ltd said on Friday it would reorganize its operational structure in April by setting up five new groups as the Japanese conglomerate continues to overhaul its sprawling operations to boost profitability. The nation's biggest industrial electronics company has been revamping its empire of some 900 firms after it reported one of the biggest losses in Japanese corporate history only three years ago under the weight of a high-cost structure and lack of operational focus. Hitachi bounced back from those losses and has been a rare bright spot among its peers during the current earnings season, with its shares jumping more than 7 percent on Friday after it maintained its full-year profit outlook, in contrast to other electronics makers that have forecast massive annual losses. (Reuters)

Court rules on using stars' images

Yomiuri — 2012-02-02 21:03:45

The Supreme Court on Thursday handed down the nation's first ruling on publicity rights, saying celebrities' names and photos are protected under publicity rights, but rejecting a compensation demand by the plaintiffs in the case, singing duo Pink Lady. Presiding Justice Ryuko Sakurai said in the ruling: "Celebrities' names and images can help sales by attracting potential customers. They are protected under publicity rights." By clarifying the status of publicity rights and providing a guideline on what constitutes a violation, the ruling will likely be seen as a wake-up call on using celebrities' names or images in publications and on the Internet without permission. Pink Lady had demanded that Kobunsha Co. pay them compensation of 3.72 million yen, saying the use of their photos without their agreement in a magazine published by the company infringed on their publicity rights. (Yomiuri)

Sony more than doubles net loss forecast

AFP — 2012-02-02 12:28:44

Japanese entertainment giant Sony more than doubled its full-year net loss forecast to $2.9 billion, a day after announcing that its president and CEO Howard Stringer would step aside. The firm on Thursday said it was expecting a net loss of 220 billion yen ($2.9 billion) for the year to March, up from 90 billion yen previously, in what will be its fourth consecutive year of losses. Last year the Tokyo-based maker of PlayStation consoles and Bravia televisions lost 259.6 billion yen. Sony also announced a net loss of 201.45 billion yen for the nine months to December, having made a profit of 129.22 billion yen in the corresponding period in 2010. (AFP)

Sharp forecasts $3.8 billion loss

AFP — 2012-02-01 11:58:08

Japanese electronics maker Sharp said Wednesday it expected a full-year net loss of $3.8 billion, blaming falling prices, a high yen and the global economic slowdown. The firm expects to lose 290 billion yen for the year to March, reversing an earlier projection of a six billion yen net profit. For the nine months to December it made a net loss of 213.5 billion yen, compared with a 21.83 billion yen profit in the corresponding period in the previous year, it said. During the same period, operating losses came to 9.1 billion yen, reversing operating profit of 66.5 billion yen in the previous year, while sales fell 18.3 percent to 1.9 trillion yen, Sharp said. (AFP)

Japan's biggest bank reports surge in net income

Wall Street Journal — 2012-02-01 11:58:08

Japan's major banks reported a mixed bag of earnings results for the April-December period, as valuation losses from equity holdings and an incoming corporate tax shake-up prompted a number of firms to book charges. Mitsubishi UFJ Financial Group Inc. was the only one of Japan's megabanks to report net profit gain in the period from the year before. Japan's biggest bank by assets logged a 48% surge in net income largely due to a one-time gain from conversion of its holdings of preferred shares in Morgan Stanley into common shares at the end of June. [MUFG] MUFG said its net profit came to ¥815.80 billion in the nine-month period, compared with a ¥551.83 billion profit in the same period a year earlier. (Wall Street Journal)

Sony's Hirai to replace Stringer as CEO

AP — 2012-02-01 11:52:46

Sony Corp. announced Wednesday that Kazuo Hirai, who leads the company's core consumer products business, will replace Howard Stringer as CEO and president as the electronics and entertainment company tries to turn around its fortunes. The 51-year-old Hirai, currently executive deputy president, was widely expected to succeed Stringer, who will become chairman of the board of directors in June, Sony said in a statement. Hirai had also led the company's gaming business in the past. In 2009, Hirai was named as part of a new management team to lead Sony, and Stringer had told the board he recommended Hirai replace him. Battered by the strong yen and poor sales in its flat panel TV business, Sony has forecast its fourth year of net loss for the fiscal year through March. It will announce fiscal third quarter earnings on Thursday. (AP)

Despite first loss in 30 years, Nintendo is still a contender

Japan Times — 2012-01-31 23:49:00

Late last month, Nintendo signaled that for the first time in more than 30 years it was posting an annual loss - of $845 million - something that until recently had seemed virtually impossible. For three decades, Nintendo has been the company people associate with video games. And during the last few years, Nintendo expanded that notion to a wider audience than ever before with risky and innovative game machines, such as the Nintendo DS and the Wii. So, what has changed? Why are things suddenly difficult for the iconic game company? During these past 30 years Nintendo has basically held a winning lottery ticket, which paid off year by year. (Japan Times)

Fujifilm seeks tie-up with Olympus

AFP — 2012-01-30 23:42:26

Japanese film and camera maker Fujifilm has offered scandal-hit Olympus a capital and business tie-up, it said Monday as it announced a slump in third-quarter profits. Fujifilm said it has formally proposed a link-up to Olympus' advisors, seeing synergies in the pair's medical operations, although it did not reveal details. "Olympus has a very strong business in endoscopes while Fujifilm is a leading firm in the areas of X-ray image diagnosis and ultrasonic systems," said a Fujifilm spokesman. Olympus is reportedly seeking a corporate alliance to shore up its finances after admitting covering up $1.7 billion in losses, and several Japanese and foreign firms including Sony have been mentioned as possible partners. (AFP)

Canon posts 0.8% full-year profit gain

AFP — 2012-01-30 23:36:30

Japanese high-tech giant Canon said its full-year net profit was up 0.8 percent as cost-cutting offset the impact of last year's tsunami and Thai floods, as well as the strong yen. Group net profit rose to 248.6 billion yen ($3.2 billion) for the year to December from 246.6 billion yen, said the PowerShot digital camera and office equipment maker, even though sales slipped 4.0 percent to 3.56 trillion yen. The firm said Japan's strong currency, which set several post-World War II highs against the US dollar in 2011, had cost it 83.3 billion yen at the operating profit level. (AFP)

Japan firms in deal to create big new shipbuilder

AFP — 2012-01-30 23:32:50

Two major Japanese conglomerates announced a deal to create one of the country's biggest shipbuilders Monday as the industry faces increasingly tough competition. Heavy machinery giant IHI and steelmaker JFE Holdings will merge their shipbuilding units IHI Marine United Inc. and Universal Shipbuilding Corporation, they said in a joint statement. Universal will become the surviving entity. Shipbuilding was once one of the drivers of Japan's post-War economic miracle, but in recent years the industry has been overtaken by those of other Asian countries. (AFP)

Japanese auto suppliers to pay price-fixing fine

AP — 2012-01-30 23:14:35

Two Japanese auto suppliers have agreed to pay more than half a billion dollars in criminal fines for a price-fixing conspiracy in the sale of parts to U.S. automakers, the Justice Department announced Monday. Yazaki Corp. agreed to pay a $470 million fine, the second-largest criminal fine obtained for an antitrust violation. The second company, DENSO Corp., agreed to pay a $78 million fine. Four Yazaki executives, all Japanese citizens, will serve up to two years in U.S. prison as part of the deal to plead guilty to one felony count. The pleas are part of an ongoing investigation that is the largest ever in the Justice Department antitrust division. (AP)

TV makers see shakeout approaching

Japan Times — 2012-01-30 23:14:35

The halcyon days of Japan's TV makers are long over. Now the business has become a drag on the earnings of the nation's electronics giants. TV demand shrank fast after consumers rushed out to buy digital TVs before broadcasts turned digital last year, making older analog models unusable without satellite or cable TV services. "The prices of flat-screen TVs are falling rapidly," an official with a major home electronics store in Tokyo said. "Customers have become choosy because they are comparison shopping." Hitachi Ltd., which has made TVs since 1956, said this month that it will cease production and outsource the work to foreign manufacturers instead. (Japan Times)

Exxon selling Japan unit for $3.9B to cut refining

AP — 2012-01-30 06:33:49

Exxon Mobil Corp. is selling its Japanese refining and marketing business to partner TonenGeneral Sekiyu K.K. in a $3.9 billion deal that reflects a long-term decline in Japan's demand for fuel and a global strategy to refocus on exploration. TonenGeneral Sekiyu will buy 99 percent of the shares of Exxon Mobil Yugen Kaisha, which refines and sells fuel and lubricants, the Japanese refiner said about the deal, announced Sunday. Exxon Mobil's stake in TonenGeneral will drop to 22 percent from 50 percent. Large oil and gas companies have been shedding refining operations in recent years and turning to oil exploration and production in the hope of bigger profits. Tighter rules for car and truck fuel efficiency are expected to weigh on growth in demand for fuel in developed countries for years to come. (AP)

Chinese tourists return to Japan

Wall Street Journal — 2012-01-29 16:55:03

After being scared off by the Fukushima Daiichi nuclear accident, Chinese tourists are visiting Japan in record numbers again, generating much-needed business and optimism for the nation's struggling retail and tourism sectors. During the Lunar New Year holiday that sent millions of people traveling across Asia and beyond, tourists from mainland China thronged popular destinations in Japan, from ski slopes in the northern island of Hokkaido, to electronics stores in Tokyo, to ancient temples in Kyoto. That's quite a change from last spring, when tourism in Japan ground to a virtual halt amid radiation fears following the March 11 nuclear accident. In December, the number of Chinese visitors rose 32% from a year earlier to a record 80,000, following a similar increase in November. Anecdotal evidence suggests another surge in January. (Wall Street Journal)

Okinawan, Mongolian groups ink deal on rare earths

Japan Times — 2012-01-29 16:43:43

A Japan-China friendship group in Okinawa Prefecture has agreed to cooperate on procuring rare earth metals with a local goodwill group in China's Inner Mongolia Autonomous Region, sources familiar with the matter said Sunday. The region is a major production base for rare earth minerals, which are crucial to making high-tech gadgets and appliances. The two groups signed a mutual exchange agreement on Jan. 19 in Huhhot, the capital of the special region, that confirms they will cooperate on business involving rare earth metals, the sources said. (Japan Times)

Glitches to cost DoCoMo execs

Japan Times — 2012-01-27 22:56:36

NTT DoCoMo Inc. President Ryuji Yamada and five other executives will face a pay cut over a series of communications service disruptions since last year, the company said Friday, while announcing a ¥164 billion system improvement plan. Yamada was expected to unveil to reporters the company's plan to beef up its data transmission facilities by spending several billion yen, the carrier said. The disruptions were caused by DoCoMo's failure to cope with increased data traffic following the rapid spread of data-hungry smartphones. (Japan Times)

Japan movie box-office revenues plunge 17.9% in 2011

Mainichi — 2012-01-27 12:11:38

Movie box-office revenues in Japan last year plunged 17.9 percent from an all-time high in the previous year to 181.2 billion yen due to the March 2011 earthquake and tsunami that devastated northeastern Japan, a film industry body said Thursday. The number of movies released in Japan came to 799, up 80 from the previous year, but there was no blockbuster, the association said, adding that the number of viewers also dropped by 30 million to 145 million, the Motion Picture Producers Association of Japan said. "Harry Potter and the Deathly Hallows - Part 2" achieved top revenues at 9.67 billion yen. (Mainichi)

KDDI net profit falls 17%

AFP — 2012-01-26 23:33:36

Japanese telecom operator KDDI said Thursday net profit for the December quarter fell 17 percent on falling income from voice calls but raised its full-year revenue outlook thanks to iPhone 4S sales. The country's number two telecom firm said its net profit for the fiscal third quarter dropped to 54.2 billion yen ($698 million) from 65.7 billion yen in the same period a year earlier. Operating profit for the quarter fell 5.4 percent to 117 billion yen from 124 billion yen a year earlier, it said. But it did say revenue for the three months increased 5.7 percent to 902 billion yen on the back of increased data traffic due to solid demand for smartphones. (AFP)

Uniqlo scores in bet Sony, Adidas missed on tennis ace Nishikori

Bloomberg — 2012-01-26 23:33:36

Japan's No. 1 tennis player Kei Nishikori's historic run at the Australian Open won a torrent of publicity for sponsor Fast Retailing Co., attention Sony Corp. and Adidas AG missed by not renewing endorsement deals. Japan's public broadcaster NHK purchased the rights to air Nishikori's Australian Open match yesterday, boosting the estimated TV audience to 55 million viewers in Japan, after the 22-year-old defeated No. 6 seed Jo-Wilfried Tsonga to win a berth in the quarterfinals. Nishikori lost the match to No. 4 seed Andy Murray, after becoming the first Japanese man in 80 years to reach the $12 million tournament's final eight. (Bloomberg)

China 0vertakes Japan as world's top coal importer

china-briefing.com — 2012-01-26 23:33:36

While China has long been the world's top producer and overall consumer of coal, the country also became the largest importer of the resource last year, overtaking a position held by Japan since at least 1975. Customs data compiled by the International Energy Agency show that strong domestic demand boosted China's coal imports by 10.8 percent in 2011 to 182.4 million tons. Japan's imports of the fossil fuel dropped by 5.1 percent to 175.2 million tons over the same period due, at least in part, to the devastating earthquake and tsunami that hit the country's northeast coast last March. However, a Reuters poll conducted last month showed that China's coal imports are expected to slow during 2012 as domestic production rises and overall consumption of the fossil fuel begins to plateau, leaving it unclear whether or not China will retain its position in 2012. (china-briefing.com)

Tepco set for $13 billion bailout

Reuters — 2012-01-26 07:44:40

The owner of Japan's stricken nuclear reactor, Tokyo Electric Power Co, will agree to be taken over by the government in a near-$13 billion bailout, sources said on Thursday, even as the country debates the future of nuclear power. The injection of 1 trillion yen ($12.8 billion) in public funds would effectively nationalize Tepco (9501.T), supplier of power to almost 45 million people including Tokyo residents, in one of the world's biggest bailouts outside the banking sector. Tepco has been dragging its feet over a proposal for the state-backed Nuclear Damage Liability Facilitation Fund to take at least a two-thirds stake in the company, which has been swamped by liabilities associated with the earthquake and tsunami which ruined its Fukushima nuclear power plant in March. (Reuters)

NEC to slash 10,000 jobs

Reuters — 2012-01-26 07:44:40

NEC Corp said Thursday it will slash 10,000 jobs, almost one in 10 of its workers, to trim costs after the electronics maker announced a loss of 87 billion yen ($1.11 billion) for the three months to December 31. The company, which employs 115,840 people worldwide, said it will book a 40 billion yen charge in the business year ending on March 31 to pay for the restructuring. It blamed its poor performance on tougher competition in the telecoms infrastructure business in Japan from foreign rivals, weak demand for its smartphones and difficulty in expanding operations overseas. The company, which also cut its forecast for mobile phone sales for the business year to 5 million from 6.5 million, said 7,000 of the job losses would be in Japan. (Reuters)

Japan's KDDI debut's forced Android advertising

totaltele.com — 2012-01-26 00:18:15

For many of us around the world advertising in an unfortunate, but unavoidable fact of life. But Japan's au by KDDI network has taken obtrusive marketing one step further, by pushing advertising directly to its Android subscribers. Android users across Japan have complained about messages popping up in their in their notifications bar, complete with the usual vibration buzzing and noises that would normally indicate an otherwise innocent message. Sources in Japan believe the AU one market, a preloaded alternative to the Google official Android market is responsible for the promotional alerts. Japanese users on Twitter have been up in arms as KDDI have made it very difficult to remove the AU one market from their devices, doing so would invalidate their warranties. (totaltele.com)

Yahoo Japan in talks with parent over stake sale

totaltele.com — 2012-01-26 00:18:15

Yahoo Japan in talks with parent over stake sale By Juro Osawa, Dow Jones Newswires Wednesday 25 January 2012 Japanese Internet firm reported 2.7% increase in quarterly net profit on back of higher advertising revenue. Yahoo Japan Corp. said Wednesday it is in talks with Yahoo Inc. on how the latter can sell its stake in the Japanese company, worth over $6 billion by market value, without paying hefty taxes, in one of the most public comments yet about potential share dealings at the struggling U.S. Internet giant. "Yahoo Inc. is still trying to finalize the mechanism (for offloading its stake) and we are cooperating with them," said Yahoo Japan's Chief Financial Officer Akira Kajikawa at a press conference. Yahoo Inc. owns a nearly 35% stake in Yahoo Japan, while Japanese mobile and Internet service firm Softbank Corp. owns a 42% stake. (totaltele.com)

Toyota global sales forecast rises on green demand

AP — 2012-01-26 00:09:54

Toyota raised its global sales target for this year to 8.58 million vehicles, up 21 percent from the previous year, as incentives for ecological cars lift demand in Japan. Toyota Motor Corp., which struggled from production interruptions last year caused by Japan's tsunami and flooding in Thailand, raised its forecast for Japan sales Wednesday to 1.63 million vehicles from an earlier 1.53 million. The latest forecast marks a 36 jump from the previous year. Toyota has been aiming for a comeback and had said in December that it plans to sell 8.48 million vehicles in 2012. The Japanese automaker behind the Lexus luxury car and the Camry sedan sold 7.95 million vehicles in 2011, down 6 percent from 2010. (AP)

Elpida merger talks in final stage / Combined firm could have 2nd-largest share of DRAM chip market

Yomiuri — 2012-01-24 23:26:47

Elpida Memory Inc., the world's third-largest dynamic random-access memory (DRAM) manufacturer, has entered the final stage of negotiations on a merger with U.S. firm Micron Technology Inc. and Taiwan's Nanya Technology Corp, sources said. By merging with the world's fourth- and fifth-largest DRAM makers, Elpida is apparently aiming at regaining lost ground in the global semiconductor memory market, of which South Korean firms control over 60 percent. Elpida is expected to ask the Innovation Network Corporation of Japan for investment as it needs a huge amount of funding for production facilities to enhance the performance of its semiconductors. The amount offered by the fund, which is jointly operated by the government and the private sector, could be as much as 100 billion yen. (Yomiuri)

Battle over no-alcohol beer heats up in Japan

themalaysianinsider.com — 2012-01-22 22:17:23

The head of Japanese beer giant Kirin Brewery Co. has fired a warning shot over the bows of the company's biggest rival in the increasingly fierce battle for the growing market for alcohol-free beer. Kirin president Koichi Matsuzawa has complained publicly that the design for the label of a new alcohol-free beer produced by Asahi Breweries is too similar to the company's mainstay Super Dry product. "Its outward appearance resembles Super Dry so much that it could lead people to buy it by mistake," Matsuzawa said at a press conference on January 11. Asahi announced the previous day that it would release the new beer - called Dry Zero (picture) - in February. The cans for the new beer will be silver with back writing, while the bottled version will have a similar, square label and another around the neck. The Japanese word for "non-alcohol" appears on the labels, but Kirin believes the Asahi logo across the centre of the design will make people associate the new drink with Super Dry. (themalaysianinsider.com)

Japanese stores go extra mile to attract Chinese during New Year holidays

Yomiuri — 2012-01-22 22:06:42

A visitor to the VenusFort shopping mall in Tokyo's Odaiba district over the weekend could be forgiven for thinking they had stumbled into Chinatown. Posters in Chinese celebrating the Lunar New Year have been prominently displayed around the mall since Friday. Red--a color Chinese consider auspicious at this time of year--dominates window displays, and seven Chinese-speaking staffers will be stationed at the mall until Sunday to help customers shop. VenusFort is not the only commercial entity that has launched an intensive sales campaign targeting Chinese tourists during the Chinese New Year holidays, which run from Jan. 22 to 28 this year. The number of Chinese tourists to Japan has rebounded following a sharp drop after the Great East Japan Earthquake and the accident at Fukushima No. 1 nuclear power plant, and department stores and retailers in Japan are eager to cash in. (Yomiuri)

TSE Olympus decision rapped

Yomiuri — 2012-01-21 23:13:15

The Tokyo Stock Exchange's decision not to delist scandal-ridden Olympus Corp. was lambasted by critics who said the company's concealment of huge losses for many years constituted breach of trust. The TSE's rules stipulate that companies should be delisted when the effects of false reporting are judged to be serious from a "comprehensive" viewpoint. Makoto Minoguchi, standing governor of Tokyo Stock Exchange Regulation, the TSE's self-regulatory body, said at a press conference Friday, "The effects of the false reporting were not serious enough to delist the company's shares." (Yomiuri)

Not all gloom for dept stores in 2011

Yomiuri — 2012-01-20 23:44:53

Sluggish consumer spending caused by the Great East Japan Earthquake exacerbated declining department store sales last year, but sales at some stores in quake-hit areas showed signs of growth after the disaster. The Japan Department Stores Association announced Thursday that in 2011, sales fell 2 percent from the previous year to 6.15 trillion yen on a same-store basis. The figure was the lowest since 1981, when sales slipped to 6.55 trillion yen, and marked the 15th consecutive annual decline. The decline was mainly attributed to sluggish consumer spending following the massive March 11 earthquake. That same month, sales fell 14.7 percent compared to the previous year, marking the second-biggest year-on-year fall. (Yomiuri)

Tepco may be run by outside directors

Japan Times — 2012-01-20 23:30:37

Tokyo Electric Power Co. may have to let outside directors oversee its management if the beleaguered utility is effectively nationalized, sources said. Discussions are also under way to set the size of the public bailout for the operator of the crippled Fukushima No. 1 nuclear plant at around ¥1 trillion, the sources said Thursday. The public fund injection for Tepco is likely to result in the resignation of its top officials. President Toshio Nishizawa is likely to be replaced by an insider, while Chairman Tsunehisa Katsumata may be replaced by someone from outside Tepco, the sources said. (Japan Times)

Moody's lowers rating on Japan's Sony, Panasonic

Daily Star — 2012-01-20 11:36:17

Ratings agency Moody's on Friday downgraded Japanese electronics titans Sony and Panasonic, giving both companies a negative outlook. The agency lowered its assessment on debt issued by Sony to Baa1 from A3, citing "weak and volatile" earnings. It downgraded Panasonic to A2 from A1, saying its analysts were concerned "that the weakness in Panasonic's profile will continue". Moody's said around $5 billion worth of long-term debt issued by Sony was affected by its announcement, which it said was due in large part to "its loss-making TV business, which is grappling with severe competition, sharp price declines, and a strong yen". (Daily Star)

General Motors ousts Toyota, retakes title of world's top-selling automaker

Washington Post — 2012-01-19 23:17:54

General Motors Co. has retaken the title of world's top-selling automaker, selling just over 9 million cars and trucks across the globe. The company said Thursday that it sold 9.03 million vehicles worldwide last year, up 7.6 percent from 2010. That's more than 1 million better than Japan's Toyota Motor Corp., which took the title away from GM in 2008. GM had held the global sales crown for more than seven decades before losing it to Toyota, as GM's sales tanked while it headed toward financial ruin. In 2009, GM filed for bankruptcy protection, needing a U.S. government bailout to survive. (Washington Post)

FamilyMart to add 600 Southeast Asia stores

Japan Times — 2012-01-19 23:05:55

FamilyMart Co. plans to open 600 stores in Indonesia and the Philippines, tapping demand from young people as an aging population saps growth at home. FamilyMart, Japan's largest convenience store chain in Southeast Asia, intends to have 300 stores in each country by 2015, Masaaki Kosaka, director of overseas operations, said in a Jan. 13 interview in Tokyo. He declined to say how much the expansion would cost. FamilyMart joins larger Japanese competitors Lawson Inc. and Seven & I Holdings Co. in planning to open more stores in faster-growing Asian markets. The International Monetary Fund has forecast 5.6 percent economic growth this year in Southeast Asia, double its projection of 2.3 percent in Japan, as relatively young populations drive consumption. (Japan Times)

Toshiba wins U.S. turbine order

Japan Times — 2012-01-19 23:05:55

Toshiba Corp. said Thursday it has won an order to supply a steam turbine and generator for a thermal power plant in the United States for $80 million. Under the contract with Colorado-based utility Tri-State Generation and Transmission Association Inc. and Kansas-based utility Sunflower Electric Power Corp., Toshiba will install the equipment at the Holcomb Thermal Power Plant in Kansas. (Japan Times)

Japan pharma firm to sack 3,000 after Swiss deal

Channel NewsAsia — 2012-01-18 22:40:37

Japanese pharmaceutical firm Takeda, which took over its Swiss rival Nycomed last year for $14 billion, on Wednesday announced almost 3,000 job losses across the combined group. In a statement issued by Takeda headquarters in Osaka, the company said the moves were intended to "better align its global workforce and consolidate site operations". Around 2,100 positions would go in Europe, and 700 in the United States, it said. The job losses will be across research and development, operations, commercial and administrative functions, it added. (Channel NewsAsia)

Disgraced Olympus president to resign in April

Wall Street Journal — 2012-01-18 22:40:37

The president of Japan's scandal-hit Olympus, who has been sued by his own company and disgraced over a cover-up of US$1.7 billion in losses, said Wednesday he would resign -- but only in April. Shuichi Takayama bowed in apology at a news conference in Tokyo and said he would step down after an extraordinary general meeting (EGM). The firm had earlier said he would be leaving, but had not given specific details. In a case that has rocked global confidence in Japanese corporate governance, Olympus has admitted that it used over-priced acquisitions and consultancy fees to hide losses it had made on earlier investments. In one element of the scheme, Olympus paid US$687 million to a little-known financial adviser based in the Cayman Islands when it bought British medical instruments company Gyrus for US$2 billion in 2008. (Wall Street Journal)

The way to save Olympus

Wall Street Journal — 2012-01-18 22:40:37

If asked to cite examples of best practice in corporate governance or respect for the rights of minority investors, it is unlikely Japan would be the first place that springs to the mind of most global investors. The recent accounting scandal at Olympus and possibility of a proxy fight for control in the wake of that scandal once again brought these issues to the front pages of the world's newspapers, thanks in no small part to the tireless work of Olympus's erstwhile chief executive, Michael Woodford. But the Olympus scandal and its aftermath open the door to a more inclusive approach to the resolution of such large shocks. After years of bad press and stalled attempts at reform in Japan Inc, this is a golden chance for reconciliation and progress. Tensions between investors and Japanese listed companies have simmered for too long. (Wall Street Journal)

Credit card firms see profit in overseas push

Japan Times — 2012-01-18 22:10:33

Credit card companies are enhancing their services for overseas travelers to draw in new members and encourage card use amid a boom in foreign trips due to the rising yen. Among such services, customers of Mitsubishi UFJ Nicos Co.'s Platinum American Express Card now don't have to take their heavy winter coats when they travel to a warm destination between Dec. 1 and the end of March. Instead, customers who pay an annual membership fee of ¥21,000, can leave their coats at Narita, Haneda, Chubu, or Kansai airports for up to 30 days and pick them up when they return. (Japan Times)

James Bond getaway car gets new lease on life

Reuters — 2012-01-18 12:25:35

For a former James Bond car, it's a chance to live twice. Japanese engineers put a new spin on an old classic car for a recent auto show, remodeling a Toyota 2000GT with solar panels and high-tech gadgets to make it 100 percent electric and solar-powered. Heralded as Japan's first sports car when it came out in 1967, the vehicle was used in the James Bond movie "You Only Live Twice," released that same year, as a getaway car for the intrepid Bond, played by Sean Connery. But the new eco-friendly version comes with a catch -- it takes nearly two weeks for the vehicle to power up completely. (Reuters)

JAL to appoint first ex-pilot president to steer new team, fall TSE relisting

Japan Times — 2012-01-17 22:24:24

Japan Airlines Corp. will appoint Senior Managing Executive Officer Yoshiharu Ueki as its new president following a shareholders' meeting in February, a move intended to strengthen its new management team ahead of its relisting later this year. Current President Masaru Onishi will become JAL chairman, while current Chairman Kazuo Inamori will serve as honorary chairman, the carrier said Tuesday. Inamori, however, said he will leave the airline next January in line with his promise at the time he joined JAL in Feburary 2010 to help rehabilitate the company. (Japan Times)

Olympus probe finds 5 auditors responsible

AP — 2012-01-17 08:19:13

An internal investigation at Olympus Corp. found that five current and former auditors are responsible for a combined 8.38 billion yen ($109 million) in losses linked to the Japanese company's accounting scandal, and plans to sue them. The panel's report released Tuesday said it found two accounting firms hired by Olympus as external auditors, KPMG Azsa LLC and Ernst & Young ShinNihon LLC, had not violated their fiduciary duties. Olympus has admitted a cover-up of investment losses of 117.7 billion yen ($1.5 billion) dating back to the 1990s and is suing 19 former and current executives for damages. (AP)

Corporate Japan: woeful lack of outside directors

Japan Times — 2012-01-16 23:00:22

Japan Inc. is often criticized for its poor corporate governance, especially when it comes to monitoring how top management makes decisions. The Olympus Corp. scandal, based at the very least on the camera maker being caught covering up massive investment losses over almost two decades, has done nothing to dispel this impression. It has drawn tremendous foreign media attention and raised questions about whether other Japanese blue-chip companies are also engaged in shady practices stemming from their bubble days. The general complaint is that Japanese firms lack independent, outside directors. Most board members for a given company come from inside. This creates a cozy internal relationship and closes the doors to outside scrutiny. (Japan Times)

Honda to build NSX 'supercar' in Ohio

Channel NewsAsia — 2012-01-15 22:56:37

With one announcement last week at the 2012 North American International Auto Show in Detroit, Honda surprised auto industry observers in at least two ways. First, the automaker is resurrecting the rare-but-beloved Acura NSX "supercar." And second, the new NSX will be designed and built in Ohio, not Japan, where the model's previous iteration was built from 1990 to 2005. Already, preliminary development work for the NSX has been handed off from Japan to Honda's Center of Research and Development in Raymond, Ohio, about 140 miles northeast of Dayton, a Honda spokesman said. (Channel NewsAsia)

Electronics giants turn to smart cities

Yomiuri — 2012-01-15 22:28:07

Hitachi, Ltd., Toshiba Corp. and other major electronics makers are increasingly turning their sights toward "smart city" projects designed to create eco-friendly, energy-efficient communities. In the wake of the March 11 Great East Japan Earthquake, smart cities are considered to be a crucial part of the government's energy-saving policy. Such projects are already under way overseas, particularly in urban developments in newly emerging economies. Foreign electronics companies, including General Electric Co. of the United States, are also gearing up to enter the smart city market, intensifying competition for orders. (Yomiuri)

Firms look to hire foreign students

Japan Times — 2012-01-15 01:24:21

Hundreds of foreign students from Japan's top universities turned up at a career forum Saturday in Tokyo, hoping to secure a job before their graduation in 2013. Clad in dark suits, the students flocked to Tokyo Dome City in Bunkyo Ward to attend briefings by 47 firms - including First Retailing Co., Sony Corp. and Mitsubishi Electric Corp. A total of 1,560 students, mostly Asian, registered to attend the Tokyo event and a job fair in Osaka on Sunday, both organized by recruitment consultancy Fourth Valley Concierge Corp. (Japan Times)

Uniqlo operator cuts outlook as Japan sales drag

CNBC — 2012-01-13 23:20:08

Fast Retailing, Asia's top apparel retailer, trimmed its full-year operating profit forecast by about 4 percent after sluggish sales at its Uniqlo casual-clothing chain in Japan weighed on quarterly profit. In a sign of progress in its global expansion, Fast Retailing enjoyed a nearly 60 percent jump in profit at its Uniqlo outlets overseas, but the segment remains a small contributor to its overall earnings. The outlook cut may take some of the luster off a Japanese stock that has been a favorite among overseas investors due to its limited exposure to the yen's strength and its perceived high-growth potential. (CNBC)

Energy-hungry Japan in $34 bln Australia gas deal

AFP — 2012-01-13 23:15:26

Japanese energy firm Inpex and French giant Total on Friday announced a huge $34 billion gas project in Australia, as Tokyo looks for alternatives to nuclear power in the wake of the Fukushima disaster. Japan has virtually no hydrocarbon resources of its own and is the world's biggest importer of liquefied natural gas (LNG) to drive its energy-hungry economy, the third largest on the planet. The project will see gas from the Ichthys field, in the Browse Basin off Western Australia, piped to Darwin, where it will be converted into liquid at a vast processing plant producing 8.4 million tonnes of LNG a year. The figure represents more than 10 percent of Japan's current gas consumption, Inpex said, and most of it will be shipped to Japan, with about 20 percent being bought by a Taiwanese firm. (AFP)