Itochu’s April-June Net Profit Drops 28.9 Pct

Economy

Tokyo, Aug. 5 (Jiji Press)--Itochu Corp. <8001> said Wednesday its group net profit in April-June dropped 28.9 pct year on year to 104,759 million yen as its automobile and convenience store businesses struggled amid the coronavirus pandemic.

The pandemic pushed down the Japanese trading house’s profit by roughly 20 billion yen in the fiscal first quarter. But Itochu kept all of its business sectors profitable thanks to cost-cutting efforts.

“The impact of the coronavirus was bigger than expected, but we managed to cover it with cost cuts,” Chief Financial Officer Tsuyoshi Hachimura said at a conference call.

He said that the company will be able to achieve its net profit estimate of 400 billion yen for the full year ending in March 2021.

Referring to Itochu’s tender offer for its FamilyMart Co. <8028> convenience store arm, Hachimura said the company will abandon the campaign if it fails to win enough shareholder support.

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Jiji Press