Mitsui Mining & Smelting Reports Dip in Six-Month Net Profit but Raises Full-Year Outlook

Mitsui Mining & Smelting Reports Dip in Six-Month Net Profit but Raises Full-Year Outlook

Financial Performance Review

Mitsui Mining & Smelting has reported a significant downturn in its net profit for the six-month period ending September 2023, with figures reaching 8.142 billion yen (approximately $53.7 million), marking a 70.8% year-on-year decline. However, the company has revised its full-year net profit expectations upward to 18 billion yen (around $118.8 million), a 110% increase from the previous fiscal year.

Operational Challenges and Improvements

The company, which operates in the non-ferrous metal smelting sector and produces functional materials and mobility products, attributes the decline to several factors. These include tax expenses, lower sales volumes, especially in the functional materials division, and increasing energy costs, despite an improved operating profit due to the yen’s depreciation.

Mid-Year Financial Results

Mitsui Mining & Smelting’s mid-year financials saw decreases across the board with sales at 312.12 billion yen (approximately $2.06 billion), operating profit at 4.659 billion yen (around $30.7 million), and pretax profit at 16.886 billion yen (about $111.4 million). The figures represent declines of 8.8%, 80%, and 50.4% respectively, on a year-on-year basis.

Full-Year Forecast Adjustments

Looking forward, the company has set a more optimistic tone, increasing its full-year forecast for operating profit to 21 billion yen (approximately $138.6 million) and pretax profit to 33 billion yen (around $217.8 million). This adjustment signifies substantial growth from the previous fiscal year. However, sales are projected to decrease slightly by 3.4% to 630 billion yen (about $4.16 billion).

Market Analysis and Share Performance

Analysts had projected lower figures than the company’s forecasts, with average estimates falling short of Mitsui Mining & Smelting’s revised predictions. The company’s stock saw a marginal decline in response to the news, with shares closing at $5.62 in Toronto, reflecting a broader downward trend over the past 12 months.

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