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Japan's Mitsubishi Q1 profits down 43% but still beat expectations

Japanese trading house Mitsubishi posted a net loss of 203.1 billion Japanese yen (about $1.4 billion) for the three-month period ending June 30. This was down 43% compared to a year earlier, but still beat analysts' expectations.

A LSEG survey of analysts predicted that the company would post a net profit of 180.3 billion yen for its first quarter. Mitsubishi's net profit for the same period in last year was 354.4 billion yen.

The company reported that this year's profit was down mainly due to the lack of gains from asset sale and the lower prices of the Australian steelmaking coke business.

Mitsubishi's forecast for fiscal year ending March next year remains unchanged at 700 billion yen.

When asked about the impact of U.S. Tariffs on the first-quarter earnings, Chief Financial officer Yuzo Nobuchi said that there was no noticeable direct impact, but some indirect effects felt through affiliates.

He said at a press conference that "uncertainty about the economic impact" of U.S. Tariffs on the U.S. economy, the Chinese economy, and the broader Asian economy could affect our business in the future.

Nouchi stated that Mitsubishi has not yet completed its feasibility assessment of the domestic offshore wind projects.

He said, "At this time, we're not in a position where we can estimate with certainty the additional losses that we might incur as a result of these projects."

Mitsubishi recorded a profit of 52.2 billion yen (US$353 million) in February.

impairment charge

On its domestic offshore projects for the nine months ended in December, the company said that it was reviewing the project's progress due to rising costs and interest rates.

Berkshire Hathaway, the investment company of Warren Buffett, has acquired minority stakes in Japan’s five largest trading houses including Mitsubishi.

(source: Reuters)