Japan's Itochu posts record 9-month profit on consumer business strength
The logo of Itochu Corp is seen outside the company's headquarters in Tokyo, Japan, November 7, 2016. REUTERS/Toru Hanai
TOKYO, Feb 6 : Japan's Itochu on Friday posted a 4 per cent rise in nine-month net profit through December 31 to 705.3 billion yen ($4.5 billion), a record for the period, boosted by strong consumer businesses, including food, textile and its convenience-store chain.
Profit at the trading house's food division rose 38 per cent to 82.5 billion yen from 60 billion yen a year before, supported by higher banana production and sales, as well as growth in the packaged foods business at Dole agriculture unit.
"Core profits in non-resource sectors booked a record on the back of healthy performance in food and textile, offsetting a slowdown in resource sectors such as metals," Chief Financial Officer Tsuyoshi Hachimura told a press conference.
Core profit is operating earnings before extraordinary gains and losses, a key measure of underlying business performance.
Turnaround plans at its U.S. and Australian coking coal mines have been delayed, but they are expected to contribute positively to earnings next fiscal year, Hachimura said.
Reflecting strong financial results, Itochu announced an additional share buyback of up to 20 billion yen by the end of March, on top of the 150 billion yen share buyback program announced last November.
"The total payout ratio is expected to reach 52 per cent this year," Hachimura added.
Itochu left its net profit forecast for the fiscal year ending in March unchanged at 900 billion yen, up 2 per cent from 880.3 billion yen reported a year earlier.
($1 = 156.65 yen)
