The Gas Review survey reveals that the total value of sales of gas distributors with sales of over JPY5 billion as they approached their financial closings for 2014 for the first time exceeded the JPY811 billion recorded after the Lehman Shock of 2008. By the autumn of this year 8 years will have passed since the Lehman Shock. The range of growth of the leading ranking distributors averaged around 5-6%, with sales slightly exceeding JPY45.1 billion. To the extent that distributors have engaged in consolidation and restructuring, as well as rebuilding of their business makes it quite plain that they are now out of the effects of Lehman Shock. Also, according to a ranking compiled by The Gas Review of 50 companies, for most of the major gas distributors in Japan, such as Tomoe Shokai and Suzuki Shokan which rank at the top level, the status surrounding the makeup of sales back then has greatly changed, and simply returning to that situation would be hard. It also does not seem in particular that they can look toward a recovery from the effects of the shifting of production overseas being undertaken at such a rapid pace by the manufacturers in Japan.

The total sales of those distributors with sales over JPY5 billion amounted to JPY856.163 billion. Compared to the previous year sales grew by 8.8%, or JPY69.041 billion. Of this, the number of distributors which had recorded sales of over JPY10 billion came to 33, the highest figure since the survey began. The total sales of the 57 distributors which had sales of JPY5 billion or more in 2008 when the Lehman Shock occurred amounted to JPY828.315 billion. This means that this marks the first time since the Lehman Shock that the tally was exceeded by around JPY27.847 billion.

The 33 distributors with sales of over 10 billion achieves record of 704.8 billion

At the time of the financial closing of 2008 which reflected business results before the Lehman Shock the number of distributors exceeding 10 billion came to 29. Sales of 2014 achieved a record amount of 704.8 billion. Back in 2008 at the time of the Lehman Shock, for the 28 distributors sales amounted to 632 billion. Since then, 2012 which had the highest figure regarding sales, showed that the sales of 28 distributors totaled 657.5 billion.

In the second group of those distributors which achieves sales of 5-10 billion there were 21 distributors with sales totaling 151.4 billion

The top of the list of gas distributors in the group with sales of 5-10 billion is crowded with powerful distributors which during the past few years have acquired the ability to compete since the Lehman Shock.

In the ranking of distributors with sales of 5-10 billion, there are 7 powerful distributors at the top with annual sales of 8 billion and there are some which have just 10 billion to go. At this time, there 33 gas distributors lined up which have sales of over 10 billion. This is the first time that this has happened since the survey started for creating a ranking in 2005.

Major industrial companies engaged in exports, including cars, in terms of operating profit appear to have secured the huge operating profits before the shock. But in the region of gas distributors which target industry in Japan, it is one step forward and one step backward so that a situation continues which has a feeling of being far indeed from that of recovery. Some slowdown was seen in the economic situation based on the increase in the consumption tax. Supported by the recovery of the economy since the latter half of 2013, the number of companies with decreased earnings has dropped sharply, and the range of decrease in earnings has also been greatly. It has been predicted that this trend will continue in 2015, and this will contribute to a recovery in the business results of the distributors.

Compared to the previous year, 2013, the fact is that in the financial reports for year 2014 a trend toward recovery in business results can be seen. Even looking at the ranking list shows that the number of distributors which had recorded drops in sales has become much smaller. Right now regarding results for 2015, the reports for the third quarter are being calculated, and the forecast calls for results to exceed those of the previous year. The effect of the increase in the sales tax last year on the business results of the distributors seems to be quite light.