Itochu Becomes Top-Earning Japan Trader for 1st Time in 5 Yrs
Tokyo, May 10 (Jiji Press)--Itochu Corp. <8001> reaped the largest group net profit among seven major Japanese traders for the first time in five years in fiscal 2020, which ended in March, according to their earnings reports for the year released by Monday.
Many of the companies suffered drops in their net profits or incurred a net loss due in part to falling resources prices amid the novel coronavirus pandemic and sluggish earnings from convenience store operations.
Itochu posted a net profit of 401.4 billion yen in the latest reporting year although the figure was down 19.9 pct from the preceding year. The company managed to minimize the coronavirus impact on its nonresources and other businesses. FamilyMart Co., Itochu's convenience store arm, fared poorly while the group's chemical, information and financial operations were robust.
Net profit at Mitsubishi Corp. <8058>, which topped the list in fiscal 2019, declined 67.8 pct to 172.5 billion yen, mainly due to an impairment loss of 83.6 billion yen linked to its convenience store unit, Lawson Inc. <2651> and a coronavirus blow to its automotive and metal businesses.
Sumitomo Corp. <8053> suffered its largest-ever net loss of 153 billion yen, with the pandemic forcing its nickel mine operations in Madagascar to shut. Sojitz Corp.'s <2768> net profit plunged 55.6 pct to 27 billion yen reflecting sluggish automobile, and metal and resources operations,
[Copyright The Jiji Press, Ltd.]