Mitsubishi Corporation reported consolidated net income of ¥355.8 billion ($2.44 billion) for the six months through September, down 42% from a year earlier, as declining steelmaking coal prices and the absence of major asset sale gains weighed on Japan’s largest trading house.
The Tokyo-based conglomerate’s mineral resources division saw profits plunge 79% to ¥41.6 billion as Australian steelmaking coal prices fell, according to the company’s November 4 earnings presentation. Market prices for premium hard coking coal have remained subdued around $190 per tonne, down from higher levels earlier in the year.
The smart-life creation segment declined 69% following the absence of last year’s ¥122.5 billion revaluation gain from reclassifying convenience store chain Lawson as an equity method affiliate. Operating cash flow decreased 15% to ¥446.3 billion.
Despite the declines, Mitsubishi maintained its full-year forecasts of ¥700 billion in net income and ¥900 billion in operating cash flow, with first-half results representing roughly 51% and 50% of annual targets respectively. The company attributed segment revisions to macroeconomic trends while keeping overall projections unchanged.
The firm completed ¥578.2 billion of its ¥1 trillion share buyback program announced in April and increased its dividend to ¥110 per share.
