Full Year 2017 Marubeni Corp Earnings Call Transcript
Key Points
- Marubeni Corp (MARUF) reported an increase in total equity by JPY 343.9 billion, reflecting strong capital accumulation and hybrid finance operations.
- Net interest-bearing debt decreased by JPY 322 billion, improving the net debt-to-equity ratio by 0.56 points to 1.39x.
- The company experienced a positive free cash flow of JPY 119.9 billion, indicating strong cash management.
- The Transportation & Industrial Machinery segment saw a net profit increase of JPY 9.1 billion year-on-year, driven by gains from the sale of an automotive sector business and increased profits in aircraft-related businesses.
- Marubeni Corp (MARUF) raised its yearly profit forecast from JPY 130 billion to JPY 140 billion, supported by rising coal and copper prices and expected gains from a photovoltaic power generation project.
- Net profit for the period decreased by JPY 14.1 billion to JPY 107.7 billion, indicating a decline in overall profitability.
- Gross trading profit decreased by JPY 59.8 billion year-on-year, impacted by yen appreciation.
- The Energy & Metals segment faced challenges with LNG and oil and gas development operations, leading to a gross trading profit decline of JPY 8 billion year-on-year.
- The Food & Consumer Products segment saw a gross trading profit decrease of JPY 13.9 billion due to changes in subsidiary status.
- Chemical & Forest Products experienced a gross trading profit decline of JPY 23.5 billion, affected by yen appreciation and worsening margin conditions in woodchip and pulp businesses.
Yabe speaking here. Thank you very much for listening. So I would like to right away get started with an explanation on the consolidated financial results for the third quarter for fiscal year ending in March 2017.
Net profit or profit for the period. Third quarter cumulative total came down by JPY 14.1 billion at JPY 107.7 billion.
Market conditions during the period concerned. WTI crude oil price was $47 per barrel, down by $2 per barrel. The copper price was $4,924 per tonne, which is lower by $463.
Exchange rate. On a year-on-year basis, further yen appreciation by JPY 15.06 vis-a-vis the U.S. dollars.
Looking at the balance sheet. Total equity, the accumulation of the profits and also the hybrid finance operations, which was executed in August of last year, the additional capital that was there. So having increased by JPY 343.9 billion from the end of the previous fiscal period at JPY 1,759,100,000,000.
Net interest-bearing debt came down by
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