Sojitz kept its full-year net profit guidance at ¥130bn after a half year in which chemicals surged, automotive almost vanished and a coal exit moved closer. Profit attributable to owners of the parent was ¥63.6bn for the six months to September, against ¥45.3bn a year earlier, and revenue rose 34.8% to ¥1.67tn. The company puts that at 49% of the full-year target.
Chemicals up, automotive flat
Chemicals earned ¥20.1bn, up from ¥10.6bn. Sojitz credits higher methanol prices, the contribution of Nippon A&L and steady domestic and overseas trading. It raised the segment's full-year forecast to ¥32bn from ¥22bn.
Automotive made ¥32mn, down from ¥772mn. Latin American car sales helped, but a weak Australian used-car business and restructuring costs weighed. Sojitz cut the segment's full-year forecast to zero from ¥5bn.
Energy and general infrastructure rose to ¥14.1bn from ¥7.9bn. The company cites the new consolidation of an Australian infrastructure development business, more US energy-solutions trading and gains on sales of some businesses. That growth owes partly to the consolidation, not only to underlying volume.
Gregory Crinum
Sojitz has signed an agreement to transfer its interest in the Gregory Crinum coking coal business in Australia. It expects the sale to complete within the current fiscal year, after approvals from the relevant authorities. Legal obligations for mine closure and rehabilitation move with the mine assets. The deal is therefore signed, not closed.
The sale of its interest in the Lake Vermont coal business is already complete. Sojitz put the two businesses' effect on first-half net profit at a ¥1.6bn loss, including a Gregory Crinum impairment. For the second half it sees a gain of at least ¥1bn, and expects about ¥40bn in cash recovered from the two.