Sumitomo Corporation raised its guidance for profit attributable to owners of the parent for the year to March 2027 by ¥40bn, to ¥670bn from ¥630bn, a rise of 6.3%. The prior year's result was ¥600.3bn. The company said first-half profit of ¥347.9bn showed a high rate of progress against the earlier ¥630bn guide, and that it expects its businesses to stay solid in the second half.
What sits behind the number
In the bridge in its interim results summary, base earnings rise ¥50bn to ¥670bn from ¥620bn. Asset-replacement and special items fall ¥10bn to ¥30bn from ¥40bn, and the buffer is unchanged at minus ¥30bn. The guidance notice names no segment or commodity as the reason for its second-half confidence.
First-half quality
First-half profit attributable to owners of the parent rose 15.5% from ¥301.2bn, but profit before tax fell 7.4% to ¥345.0bn. Income tax was a ¥15.7bn credit, against a ¥41.1bn charge a year earlier; the company ties the swing to the tax effect of the sale of its Madagascar nickel business.
Dividend
The annual dividend forecast rises ¥4 to ¥44 a share, and the interim dividend is ¥22, against ¥20 in the earlier forecast. The company said it had split its shares four for one on 1 July 2026, so the prior year's ¥150 total is a pre-split figure and not directly comparable. The payout follows a policy of a total return ratio of at least 40% and a progressive dividend.
Sumitomo lists a prolonged or renewed Middle East and Strait of Hormuz disruption, and persistently high energy and raw material prices, among the risks to its outlook.