ESTIMATED DROP IN JAPAN CORPORATE PROFITS TRIMMED

  The combined profits of Japan's major
  corporations, excluding financial institutions, are forecast to
  fall 19.2 pct in the 1986/87 year ending March 31, compared to
  the 19.9 pct decline projected in late November, Wako Research
  Institute of Economics said.
      The private research body also said in a statement that 437
  of the 1,084 firms listed on the first section of the Tokyo
  Stock Exchange foresee an 11.6 pct fall in sales in the year
  against an 11.4 pct fall estimated last November.
      Current profits are projected to fall 4.4 pct in 1987/88 on
  sales seen increasing by 4.2 pct, it said.
      Rationalisation measures taken by manufacturing industries
  to cope with the yen's sharp rise are beginning to brighten
  their business outlook, the institute said.
      It said lower interest rates, which are expected to reduce
  corporate borrowing costs, are also behind the improved
  performance outlook.
      Earnings performance in the non-manufacturing sector will
  be supported by firm demand in the real estate and construction
  businesses, it said.
      The forecast was based on average exchange rate estimates
  of 160 yen to the dollar in 1986/87 and 155 yen in 1987/88.
  

