SumitomoCorp.'s metal products unit posted a profit attributable toshareholders of ¥12 billion for the year ended March 31, down from a profit of¥32.5 billion a year ago, the company said May 9.
The metals unit realized an impairment loss of ¥5.3 billionin Edgen Group, and a decrease in earnings of tubular products business inNorth America.
For fiscal 2016, ending March 31, 2017, the company expectsprofit to remain stable year over year at ¥12 billion.
On a consolidated basis, Sumitomo swung to a profitattributable to shareholders of ¥74.55 billion, or ¥59.69 per share, from ayear-ago loss of ¥73.17 billion, or ¥58.64 per share, despite a 6%year-over-year drop in gross profit to ¥894.1 billion.
Impairment losses on the company's long-lived assetsdecreased ¥221.4 billion to ¥57.2 billion, resulting in a ¥198.1 billionimprovement in operating profit to ¥113.7 billion.
For fiscal 2016, Sumitomo expects profit attributable toshareholders of ¥130.0 billion, or ¥104.17 per share. Profit before tax isexpected at ¥170.0 billion.
The company said that it expects "the difficultbusiness climate for our mineral resources businesses and tubular productsbusiness to continue as a result of the impact of falling mineral resourcesprices."
Sumitomo anticipates needing about ¥20 billion for steadyasset replacements and improvement of its financial structure, it added.
As of May 6, US$1 wasequivalent to ¥106.70.