Mitsubishi Corp. plunges most in 4 years as profit falls on oil
By Bloomberg
Mitsubishi Corp., Japan’s largest trading house, fell the most in four years in Tokyo after reporting that quarterly profit plunged 33 percent due to a collapse in crude oil prices.
Net income declined to 75 billion yen ($605 million) in the three months ended June, the first fiscal quarter, from 110 billion yen a year earlier, Tokyo-based Mitsubishi said in a statement. That was below the 93 billion yen mean estimate from three analysts compiled by Bloomberg.
Mitsubishi fell 6.2 percent to 2,483.5 yen at 1:24 p.m. in Tokyo, the biggest fall since September 2011.
The drop in commodity prices, especially natural gas, oil and metals, was behind the slide in profits, said Shuma Uchino, the chief financial officer, at a briefing in Tokyo today. The company can “catch-up” over the next nine months of this fiscal year and meet the annual net income goal of 360 billion yen, he said.
Slowing economic growth in China has put commodity prices in a tailspin, with crude oil halving in price last year and coking coal and iron ore continuing their declines this year from a 2011 peak. The recovery in China’s economy is taking longer than expected, Uchino said.
Mitsubishi is Japan’s biggest importer of liquefied natural gas and co-owns the world’s largest exporter of coking coal with BHP Billiton Ltd.
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