Mitsubishi Materials Corp. revised its earnings forecast for first half and full fiscal 2018 on the back of firm demand for cement in Southern California, and early payment of dividends from copper mines.
The company said Aug. 8 it expects full-year net income attributable to shareholders of ¥31.0 billion, a 10.7% increase over the previous forecast.
Net sales, however, are expected to be 1.9% lower than the previous forecast at ¥1.540 trillion, while operating profit is expected to increase 7.7% over the previous guidance to ¥70.0 billion.
For the first half of fiscal 2018, Mitsubishi Materials expects net income attributable to shareholders of ¥18.0 billion, net sales of ¥720.0 billion, and operating profit of ¥33.0 billion.
The company intends to declare a dividend of ¥30 per share in the second quarter, and ¥50 per share at year end.
In the first quarter of fiscal 2018, Mitsubishi Materials' net income attributable to shareholders increased 8% year over year to ¥11.63 billion.
Net sales for the three months jumped 11.5% to ¥333.32 billion, while operating profit surged 31.2% to ¥17.31 billion, on a yearly basis.
The company's metals segment posted operating profit of ¥3.7 billion in the quarter, a 16% year over year drop, despite a 13.6% jump in net sales to ¥158.5 billion.
For the copper business, operating profits declined due to furnace repairs at the Noshima smelter and refinery. Copper cathode production in the three months increased 6,900 tonnes over the prior-year quarter to 144,000 tonnes.
Both net sales and operating profits increased for gold and other valuable metals business due to an increase in palladium prices.
The copper and copper alloy products business also posted higher net sales and operating profits on the back of higher sales volumes.
The aluminum segment posted stable year over year operating profit at ¥2.3 billion in the quarter, while net sales slipped 1.8% to ¥39.5 billion.
Quarterly operating profit for the cement segment surged 88.1% year over year to ¥5.2 billion, and net sales jumped 18.5% to ¥47.5 billion.