ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Japan-Update

Sumitomo Metal lifts net profit forecast as prices rise

Upgraded projections also cover operating earnings, sales

TOKYO -- Sumitomo Metal Mining expects to log 68 billion yen ($600 million) in group net profit for the year ending in March, rebounding from a net loss of 18.5 billion yen last year as higher prices for nonferrous metals improve profitability.

The Japanese company raised its forecast by 5 billion yen Thursday while announcing earnings for the April-September half.

Pretax profit is pegged at 97 billion yen after a loss of 1.5 billion yen last year. And rising copper, nickel and cobalt prices have pretax profit poised to beat guidance by 3 billion yen in the natural resources segment and by 6 billion yen in the smelting and refining business.

The higher metal prices will absorb an 8.9 billion yen loss booked in the first half stemming from an unsuccessful dispute over past royalties associated with an equity-method affiliate's copper mine.

Sumitomo Metal now also projects a 15% rise in annual sales to 903 billion yen, up 48 billion yen from an earlier estimate. Operating profit is seen growing 17% to 89 billion yen, or 14 billion yen more than previously forecast.

Sales for the just-ended half climbed 21% on the year to 442.1 billion yen, while net profit jumped 11-fold to 35.1 billion yen. In addition to fewer losses from the Sierra Gorda mine in Chile, where development is behind schedule, the company did not book exchange rate losses as it did last year, contributing to the improved results.

Strong earnings also prompted Sumitomo Metal to increase its annual dividend forecast by 4 yen to 40 yen. 

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more