- Statistics
- Quarterly Survey of Japanese Business Activities
- Quarterly Survey of Japanese Business Activities (January-March 1998)
- 5. Status of Overseas Subsidiaries by region
Quarterly Survey of Overseas Subsidiaries
5. Status of Overseas Subsidiaries by region
Sales by Overseas subsidiaries worldwide totaled 9.0241 trillion yen, up 5.6% from the same quarter a year ago, with growth posted in all areas except ASEAN4 (- 26.7%) and NIES3 (- 7.9%).
Their exports to Japan, or so-called reverse imports to Japan, totaled 616.9 billion yen, a decline of 2.3%. Those in ASEAN4 and NIES3 posted falls in exports to Japan, 14.2% and 7.6% respectively, as did falls in total sales, while those in all other areas posted growth.
Capital investment (the amount of tangible fixed assets acquired, except land) by Overseas subsidiaries worldwide totaled 358.5 billion yen, down 10.9%, due to declines in North America, ASEAN4, China and other Asian countries.
The percentage of Overseas subsidiaries expecting sales growth in the 1998 April-June quarter increased in all areas except North America (down 14.5 points from the preceding quarter) and ASEAN4 (down 1.2 points), with the DI edging up by 0.3 points worldwide.
(1) North America
- (a) Turnover and Local Sales
- Sales increased in all industries except Iron and Steel (down 3.0%) to 4.2600 trillion yen, up 11.5% from the same quarter a year ago. Transport Machinery (up 7.6%) and Electrical Machinery (up 13.6%) contributed greatly to overall sales growth.
- Local sales also increased in all industries except Iron and Steel (down 3.0%) to 3.1277 trillion yen, up 13.9% from the same quarter a year ago. The ratio of local sales to total sales increased by 1.5 points from the preceding quarter to 73.4%.
- The percentage of Overseas subsidiaries anticipating sales growth in the 1998 April-June quarter still remains high, though the DI fell from the preceding quarter by 14.5 points (42.8 to 28.3) for overall sales and by 14.9 points for local sales (42.0 to 27.1).
- (b) Equipment Investments
- The acquisition value of tangible fixed assets other than land decreased in six industries including Chemicals (by 60.6%), totaling 177.6 billion yen, down 10.2% from the same quarter a year ago.
- The percentage of Overseas subsidiaries expecting increased capital investment in the 1998 April-June quarter fell, with the DI falling by 2.7 points (24.0 to 21.3) from the preceding quarter.
- (c) Employment
- The number of employees rose by 6.4% from the same quarter a year ago to 360,000 employees, due mainly to the increase in Electrical Machinery and Transport Machinery.
- The percentage of Overseas subsidiaries expecting increased employment in the 1998 April-June quarter fell, with the DI falling by 8.4 points (18.4 to 10.0) from the preceding quarter.
- (d) Reverse Imports
- Exports to Japan, or so-called reverse imports, increased in nine industries including Electrical Machinery to total 84.3 billion yen, up 15.7% from the same quarter a year ago. The future trend will be watched carefully.
(2) Asean 4
- (a) Turnover and Local Sales
- Sales fell sharply by 26.7% from the same quarter a year ago to 788.8 billion yen, following a 12.4% fall in the preceding quarter. Local sales fell in all the four nations, including Thailand and Indonesia, plummeting to 269.7 billion yen, down 44.0%. Sales fell in ten industries, including Transport Machinery which posted fall for the fifth consecutive quarter, and local sales fell in eleven industries.
- The percentage of Overseas subsidiaries anticipating sales growth in the 1998 April-June quarter fell in six industries, with the DI for total sales falling by 1.2 points (17.1 to 15.9) from the preceding quarter. The percentage of those expecting declined sales in the transport machinery industry decreased, though the DI was still in the negative range as in the preceding quarter.
- (b) Equipment Investments
- The acquisition value of tangible fixed assets other than land decreased in ten industries including Chemicals and Transport Machinery to total 39.5 billion yen, down 47.7% from the same quarter a year ago.
- The percentage of Overseas subsidiaries expecting increased capital investment in the 1998 April-June quarter rose, with the DI rising by 1.5 points (6.7 to 8.2) from the preceding quarter.
- (c) Employment
- The number of employees rose by 1.5% from the same quarter a year ago to 403,000 employees.
- The percentage of Overseas subsidiaries expecting increased employment in the 1998 April-June quarter remains almost unchanged, with the DI falling by 0.1 point (2.6 to 2.5).
- (d) Reverse Imports
- Exports to Japan, or so-called reverse imports, decreased to 215.8 billion yen, down 14.2% from the same quarter a year ago. Exports to Japan fell in ten industries including Electrical Machinery.
- The percentage of Overseas subsidiaries expecting increased reverse imports in the 1998 April-June quarter fell for the third consecutive quarter, with the DI falling by 3.3 points (8.0 to 4.7).
(3) Nies 3
- (a) Turnover and Local Sales
- Sales fell by 7.9% from the same quarter a year ago to 785.3 billion yen. It fell in ten industries including Electrical Machinery. Local sales fell by 6.2% to 352.7 billion yen. It fell in nine industries including Electrical Machinery.
- The percentage of Overseas subsidiaries expecting increased sales in the 1998 April-June quarter rose in seven industries, including Chemicals, with the DI for all industries rising by 12.2 points (-0.9 to 11.3). The percentage of those anticipating increased local sales also increased in all industries by 12.2 points (-4.4 to 7.8).
- (b) Equipment Investments
- The acquisition value of tangible fixed assets other than land increased by 1.8% from the same quarter a year ago to 24.8 billion yen. Electrical Machinery contributed greatly to the overall growth.
- The outlook for the 1998 April-June quarter remains unchanged, with the DI for all industries staying flat to the preceding quarter at 8.7 points.
- (c) Employment
- The number of employees fell by 4.4% from the same quarter a year ago to 119,000 employees.
- The percentage of Overseas subsidiaries expecting increased employment in the 1998 April-June quarter rose as a whole, with the DI rising by 6.1 points (-14.6 to -8.5).
- (d) Reverse Imports
- Exports to Japan, or so-called reverse imports, decreased in seven industries including Electrical Machinery to total 121.1 billion yen, down 7.6% from the same quarter a year ago.
- The percentage of Overseas subsidiaries expecting increased reverse imports in the 1998 April-June quarter fell, with the DI for all industries falling by 2.5 points (1.0 to -1.5).
(4) China and Other Asian Countries
- (a) Turnover and Local Sales
- Sales increased in all industries to total 599.2 billion yen, up 15.6% from the same quarter a year ago. Local sales grew by 12.9% to 201.8 billion yen. It increased in ten industries including Electrical Machinery.
- The percentage of Overseas subsidiaries expecting increased sales in the 1998 April-June quarter rose in eight industries, with the DI for all industries rising by 11.4 points (31.5 to 42.9). The percentage of those anticipating increased local sales also increased in all industries by 6.2 points (33.5 to 39.7).
- (b) Equipment Investments
- The acquisition value of tangible fixed assets other than land decreased sharply by 48.0% from the same quarter a year ago to 17.2 billion yen. Electrical Machinery contributed greatly to the overall decline.
- The percentage of Overseas subsidiaries expecting increased capital investment in the 1998 April-June quarter fell in six industries, with the DI for all industries falling by 0.7 points (13.6 to 12.9).
- (c) Employment
- The number of employees increased by 9.0% from the same quarter a year ago to 212,000 employees. It increased in all industries except Textiles.
- The percentage of Overseas subsidiaries expecting increased employment in the 1998 April-June quarter fell, with the DI for all industries falling by 2.3 points (19.1 to 16.8) from the preceding quarter.
- (d) Reverse Imports
- Exports to Japan, or so-called reverse imports, increased by 12.5% from the same quarter a year ago to 165.5 billion yen. The growth was recorded by eight industries, including General Machinery and Electrical Machinery which outstood in the amount of growth.
- The percentage of Overseas subsidiaries expecting increased reverse imports in the 1998 April-June quarter edged up, with the DI for all industries rising by 0.9 points (11.4 to 12.3).
(5) Europe
- (a) Turnover and Local Sales
- Sales increased in all industries to total 2.0901 trillion yen, up 14.5% from the same quarter a year ago. Sales growth was recorded by all industries except Textiles, with Electrical Machinery and Transport Machinery contributing greatly to the overall growth. Local sales expanded by 20.9% to 1.1250 trillion yen. Growth was recorded by eight industries including Electrical Machinery and Transport Machinery.
- The percentage of Overseas subsidiaries expecting increased sales in the 1998 April-June quarter rose in five industries, with the DI for all industries rising by 0.4 points (35.2 to 35.6) from the preceding quarter. The percentage of those anticipating increased local sales also increased in all industries by 1.5 points (34.8 to 36.3).
- (b) Equipment Investments
- The acquisition value of tangible fixed assets other than land increased by 14.9% from the same quarter a year ago to 66.2 billion yen. The capital investment increased in four industries including Transport Machinery.
- The percentage of Overseas subsidiaries expecting increased capital investment in the 1998 April-June quarter edged down, with the DI for all industries falling by 3.2 points (23.9 to 20.7) from the preceding quarter.
- (c) Employment
- The number of employees increased by 0.8% from the same quarter a year ago to 183,000 employees.
- The percentage of Overseas subsidiaries expecting increased employment in the 1998 April-June quarter rose, with the DI for all industries rising by 3.9 points (7.0 to 10.9) from the preceding quarter.
- (d) Reverse Imports
- Exports to Japan, or so-called reverse imports, increased by 1.9% from the same quarter a year ago to 23 billion yen. The growth was recorded by six industries, including Chemicals and Textiles which outstood in the amount of growth.
- The percentage of Overseas subsidiaries expecting increased reverse imports in the 1998 April-June quarter edged up, with the DI for all industries rising by 0.5 points (-1.1 to -0.6) from the preceding quarter.
Last Update: January 31, 2008