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Companies

Marubeni expects $1.7bn annual loss due to coronavirus

Forecast marks a huge reversal for company, which had expected a sizable profit

Marubeni is just one of many Japanese companies hit by the coronavirus crisis and plunging oil prices.

TOKYO (Reuters) -- Japanese trading company Marubeni Corp said on Wednesday it now expects a net loss of 190 billion yen ($1.7 billion) for the year ending this month after the coronavirus epidemic hammered the global business environment.

The company had previously expected a 200 billion yen net profit.

Marubeni said it was booking impairment and one-time losses worth a total 390 billion yen, notably 145 billion yen for its oil and gas division and 100 billion yen for its U.S. grain business.

It is also booking a 60 billion yen impairment loss on its Chilean copper mining business, the company said.

The losses are "due to the deterioration of the global business environment, including a sharp drop in crude oil prices, following the worldwide coronavirus outbreak and other factors," Marubeni said in a statement.

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