Major Japanese Traders' FY 2019 Earnings Battered by Coronavirus
Tokyo, May 8 (Jiji Press)--Five of seven major Japanese trading companies faced severe earnings setbacks in fiscal 2019 due to commodity price falls and a slump in demand for durable goods amid the global novel coronavirus pandemic, according to their latest financial statements released by Friday.
In the year that ended in March, Marubeni Corp. <8002> suffered a record group net loss of 197.4 billion yen, while Sumitomo Corp. <8053> saw its net profit fall by 46.5 pct year on year, Sojitz Corp. <2768> by 13.6 pct, Mitsubishi Corp. <8058> by 9.4 pct and Mitsui & Co. <8031> by 5.5 pct.
Only Itochu Corp. <8001> and Toyota Tsusho Corp. <8015> managed to book net profit growth, of 0.2 pct and 2.2 pct, respectively.
Meanwhile, six traders, excluding Marubeni, are bracing for substantial worsening of their earnings in fiscal 2020, with no end in sight to the pandemic.
Mitsubishi, Sumitomo and Toyota Tsusho have put off showing earnings projections for the current business year due to the murky business environment. Mitsui, Sojitz and Itochu expect their net profits to plunge 54.0 pct, 34.2 pct and 20.2 pct, respectively, while Marubeni projects a turnaround to log a 100-billion-yen profit.
[Copyright The Jiji Press, Ltd.]