Japanese electronics firms, carmakers boost April-June inventories

Japanese electronics companies and automakers increased inventories in the April-June quarter, as a result of recovering output after the March 11 tsunami. Prices of natural resources, such as oil and iron ore, soared and boosted inventory valuations. But it still remains to be seen whether the increase will help increase revenue. A recent survey conducted by the Nikkei ranked 997 listed manufacturers that closed their books on March 31. The survey did not include companies that are listed on the two stock exchanges for start-ups.
Hitachi Ltd. leads with largest inventory gain
The ranking was based on inventory increases from the end of March through the end of June. The largest inventory gain was posted by Hitachi Ltd. with 194.9 billion yen (US$2.5 million) over the three-month period. Hitachi built up its inventory of construction machinery in response to strong demand in China, as well as other emerging markets. Toshiba Corp. came in third, with increased inventory for semiconductors and small and mid-size liquid crystal displays, in response to the growing demand for smart phones. Mitsubishi Electric Corp. came fifth, while automakers Toyota Motor Corp. and Nissan Motor Co. ranked seventh and eight respectively. The two automakers were forced to drastically cut production after the March 11 tsunami, but both have recovered production to pre-disaster levels by July.
Toyota plans to produce 4.5 million units till the end of the year, a 23% increase from the same period a year earlier. In the latter half of the year, Nissan Motor Co. will produce 2.59 million units, up by 18% on the year. (September 2, 2011)