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Sumitomo cuts profit forecast amid metal slump

Metal News - Published on Mon, 08 Feb 2016

Image Source: shortbiznews
Japanese trading house Sumitomo Corp more than halved its net profit forecast for the year ending March 31 as slumping metal prices forced it to book about JPY 170 billion (USD 1.5 billion) in write downs on resource assets.. It now predicts an annual net profit of JPY 100 billion, down from its earlier estimate of JPY 230 billion.

Last month, Sumitomo said it would take a write down of JPY 77 billion on its Ambatovy nickel mine in Madagascar as prices at 12-year lows wreak havoc among miners.

The Tokyo-based company booked impairment losses of JPY 111.6 billion for the April-December period, including losses on its stake in iron ore assets in South Africa and a copper mine in Chile.

It also said it could post more write downs in the January-March quarter, possibly on its stake in a coal mine in Australia, iron ore asset in Brazil and steel pipe business in North America.

Like international oil majors and mining companies, Japan’s trading companies have been caught flat-footed by the rout in commodities.

Source :

Posted By : Rabi Wangkhem on Mon, 08 Feb 2016
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