Japan's Mitsui & Co Q1 net profit down 43 pct on lower capital gains

Mon. August 04, 2008; Posted: 01:17 AM

TOKYO, Aug 04, 2008 (Thomson Financial via COMTEX) -- MITSY | Quote | Chart | News | PowerRating -- Japan's second-largest trading house Mitsui & Co. said on Monday its net profit tumbled 43.1 percent in the fiscal first quarter ended June, compared with a year earlier when the company booked high capital gains from the sale of some of its business interests.

But the company said it has left unchanged its full-year to March 2009 earnings guidance, citing a steady improvement in its resource-related businesses amid surging commodity prices.

First-quarter net profit fell to 103.08 billion yen ($956.9 million) from a profit of 181.03 billion yen a year ago, it said.

Combined capital gains via the sale of its stakes plunged to 6.4 billion yen from 44.0 billion a year earlier, when it registered proceeds from the sale of part of its stake in the Sakhalin-2 project.

In the corresponding period last year, it also generated capital gains of 55.2 billion yen from the sale of its stake in iron ore producer Sesa Goa.

Operating profit surged 40.3 percent to 123.3 billion yen as gross profits from its steel, metal and energy operating segments improved, the company said.

Japanese trading companies have in recent years spent heavily on energy and resource projects, which are now yielding good returns.

Revenue rose 11.0 percent to 4.29 trillion yen.

For the full year to March 2009, the trading house is expecting net profit of 460 billion yen, operating profit of 470 billion yen and revenue of 16.1 trillion yen, in line with its earlier projections.

yasuhiko.seki@thomsonreuters.com

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For full details on Mitsui and Company Ltd. ADS (MITSY) click here. Mitsui and Company Ltd. ADS (MITSY) has Short Term PowerRatings of 7. Details on Mitsui and Company Ltd. ADS (MITSY) Short Term PowerRatings is available at This Link.

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