TOKYO (Kyodo) -- Pretax profits at Japanese companies in the July-September period fell 3.3 percent from a year earlier, declining for the first time in seven quarters, hit by fierce competition in overseas markets and the yen's firmness that eroded earnings abroad, government data showed Monday.

With the transportation equipment sector posting a 16.8 percent drop and the oil and coal sector incurring a loss, the pretax profits of more than 20,000 surveyed companies totaled 23.01 trillion yen ($153 billion) in the third quarter of 2024, the Finance Ministry said.

The U.S. dollar remained under pressure, weakening toward the end of the quarter when it traded at 142.38 yen, 6.39 yen weaker than a year earlier, according to the ministry.

"Coupled with the yen's strength that reduced overseas earnings, rising operating costs, including salaries and interest payments, appeared to have affected (their operating profits)," said Takeshi Minami, chief economist at the Norinchukin Research Institute.

Still, capital spending in the quarter remained solid, rising 8.1 percent from a year earlier to 13.41 trillion yen, up for the 14th consecutive quarter, due mainly to strong semiconductor demand.

Manufacturers increased investment by 9.2 percent, up for the 14th consecutive quarter, driven by the information and communications machinery, and transportation equipment sectors.

Spending by nonmanufacturers also climbed 7.4 percent, marking the ninth straight quarter of growth, led by delivery and postal services.

The figures will be used to revise the country's gross domestic product for the July-September period. The Cabinet Office next Monday will release the revision to the preliminary data that showed the economy expanded an annualized real 0.9 percent, marking the second straight quarter of growth.

The preliminary GDP data showed a 0.2 percent decline in capital investment, one of the key components of growth, in the reporting quarter.

"As capital investment remained solid, it is likely to be revised up, possibly pushing up the whole of GDP next week," Minami said.

Sales grew 2.6 percent to 377.30 trillion yen in the July-September period, a record for the quarter, buoyed by the food and service industries that succeeded in passing on higher costs to customers.

For the reporting period, the ministry surveyed 32,647 companies capitalized at 10 million yen or more, of which 23,216, or 71.1 percent, responded.