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ITOCHU's FY'16 metals segment net profit down on lower coal, iron ore prices

ITOCHUCorp.'s fiscal 2016 net profit attributable to shareholders for itsmetals and minerals segment dropped ¥35.5 billion to ¥11.6 billion, on lowergross trading profit, it said May 6.

Gross trading profit for the metals segment was down by¥34.5 billion to ¥32.5 billion due to lower iron ore and coal prices, which waspartially offset by an increase in iron ore sales, reduction in iron ore costs,and improvement in foreign currency translation in iron ore and coal companies.

Revenue for the company's metals and minerals segmentdecreased by ¥33.4 billion to ¥220.1 billion. The energy and chemicals and ICT,general productions and realty segments also posted lower revenue, offset bythe increase in the food company.

ITOCHU announced a total dividend of ¥50 per share for theyear, compared to ¥46 per share for fiscal 2015.

The company's consolidated net profit attributable toshareholders dropped 20% year over year to ¥240.38 billion, or ¥152.14 per share,for fiscal 2016.

The net profit dropped on a 9.1% fall in revenue to ¥5.084trillion, a 33.8% decrease to ¥72.7 billion in gains on investments, and a¥150.8 billion increase in losses on property, plant, equipment and intangiblesassets to ¥155.1 billion.

The losses were partially offset by a ¥137.6 billion gain inincreased equity in earnings of associates and joint ventures, and a ¥76.5billion drop in income tax expense to ¥46.4 billion.

In fiscal 2017, ITOCHU expects net profit attributable to shareholdersto increase 45.6% year over year to ¥350.0 billion, despite a 1.6% expecteddrop in revenue to ¥5.0 trillion.

As of May 5, US$1 wasequivalent to ¥107.35.