Mitsubishi Corp.'s net income for its metals segment in the nine months that ended Dec. 31, 2017, jumped 37% year over year to ¥178.7 billion thanks to higher realized prices and dividend income from Australian coal and other mineral resources.
Citing higher market prices for coal and other minerals, the Japanese trading house now expects its metals segment to post an attributable profit of ¥240 billion in its fiscal 2018, up from previous expectations of ¥195 billion.
Mitsubishi CFO Kazuyuki Masu said the stronger-than-expected demand from China for high-quality coal is partially responsible for boosting coking coal prices.
"But the rally has been overdone. We expect the coking coal prices to head slightly lower through the end of March," Masu was quoted as saying by Reuters.
Masu added that the company is considering investing in copper amid the electric vehicle boom.
The company holds an 18.10% stake in the Quellaveco copper joint venture in Peru with Anglo American Plc. The Financial Times reported in January that the company was considering increasing its interest to 30%.
Mitsubishi also raised the entire group's profit forecast for the year by 8% to ¥540 billion and increased its proposed annual dividend to ¥100 from ¥95.
In the nine-month period, Mitsubishi's consolidated net income jumped 12% on a yearly basis to ¥416.2 billion.
As of Feb. 2, US$1 was equivalent to ¥110.39.
