NEWS - Sumitomo expects smaller FY loss for mineral resource business

print Print this document.  Post this story to Facebook.
Vivian Teovivian.teo@fastmarkets.comJoint News Editor - Asia

Singapore 09/05/2016 - Japan's Sumitomo Corp has forecast a net loss of 23 billion yen ($213 million) for its fiscal year ending March 2017 for its mineral resources, energy, chemical and electronics business, a smaller loss than the 151.6-billion-yen loss it posted in the previous fiscal year.

"Although a stable performance is expected in our non-mineral resources businesses, we expect a difficult business climate for our mineral resources business and tubular products business," it said in its annual report on Monday.

"There is growing uncertainty about the future, including a slowdown of the Chinese economy, the acceleration of capital outflows from some emerging countries, and the prolonged decline of mineral resource prices, which could also weigh on the recovery of the Japanese economy," Sumitomo added.

Sumitomo's net loss in the sector expanded to 191 billion yen in the previous fiscal year after it booked an impairment loss of 195.1 billion yen and because of the drop in mineral resource prices.

The largest write-down of 77 billion yen came from its Ambatovy nickel project in Madagascar. Other impairment losses came from its copper and molybdenum mining business, Sierra Gorda in Chile - a 14-billion-yen write-down - and iron ore projects in South Africa and Brazil.

Sumitomo's overall net profit totalled 74.5 billion yen in the last fiscal year, boosted by its non-mineral resource businesses in media and leasing.

It has forecast a higher overall profit of 130 billion yen for the fiscal year to March 2017.



Fastmarkets.com
mailto:press@fastmarkets.com
8 Bouverie Street, London, EC4Y 8AX, UK
+44 (0)845 241 9949