Singapore 06/05/2016 - Japan's Itochu Corp expects its metals and minerals business to return to profit in the current fiscal year ending March 2017 after posting a net loss of 16.7 billion yen ($156 million) in fiscal 2016.
Itochu has projected net profit of 13 billion yen for its metals segment for this fiscal year, according to its full-year management plan released on Friday, thanks to the absence of recognition of impairment losses.
In its last fiscal year, its metals and minerals business swung to a 16.7-billion-yen loss from a net profit of 11.2 billion yen net in fiscal 2015 due to a decline in iron ore and coal prices as well as impairment losses.
Other than iron ore and coal, Itochu's metals and minerals business also includes operating in the aluminium chain and the development of base metals and minor metals mineral resources, as well as nonferrous metals trading.
Together with BHP Billiton, it manages Worsley Alumina in Australia, which has integrated operations from bauxite to refined aluminium. It is also involved in exploration activities for platinum and nickel in South Africa and copper, zinc and lead in the US.
(Editing by Mark Shaw)