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Resource business impairments push Mitsubishi to FY loss

In line with expectations,Mitsubishi Corp. swungto a net loss attributable to owners of the parent of ¥149.40 billion for the yearended March 31, compared to a year-ago profit of ¥400.57 billion, the company saidMay 10.

It booked a ¥380.2 billion loss on the resource business, comparedto a ¥76.5 billion profit a year ago. This comprised a ¥271 billion loss on itsChilean copper business, a ¥29.0 billion loss related to Australian iron ore operationsand a ¥17.0 billion loss on its South African ferrochrome holdings.

The Japanese trading house booked an impairment charge of ¥426billion including ¥41 billion from the nonresources business.

Revenues fell 9.7% to ¥6.926 trillion, resulting in pretax lossof ¥92.82 billion. Loss per share was ¥93.68, compared to EPS of ¥245.83 a yearago.

Suffering from low product prices, the company's metals segmentbooked a net loss of ¥360.73 billion, swinging from a year-ago profit of ¥13.86billion.

Net cash spent on investing activities during the year amountedto ¥503.9 billion, compared to ¥154.85 billion the company spent a year earlier.

Mitsubishi will pay an annual cash dividend of ¥50 per share,compared to ¥70 per share paid in the previous year.

The Japanese firm expects net income attributable to owners ofthe parent for the year ending March 31, 2017 to total some ¥250.00 billion, or¥157.77 per share, and forecast an annual dividend of ¥60 per share for the period.

Separately, the company said it would focus investments on metallurgicalcoal, copper and natural gas in the next three years "optimizing the qualityof its portfolios while maintaining their overall sizes." It is targeting double-digitreturns on equity around fiscal year 2020, along with a "flexible and progressivedividend policy."

As of May 9, US$1 was equivalentto ¥108.36.