Sumitomo Corp Reports Net Profit Drop Amid Losses, Outlines Future Strategy

Japanese trading house Sumitomo Corp has reported a net profit of 386.4 billion yen (approximately $2.5 billion) for the fiscal year ending March, marking a 31.7% decline from the previous year and falling short of analysts' estimates of 504.9 billion yen. This shortfall was largely due to one-time losses totaling 150 billion yen, including a significant 89 billion yen impact from the Ambatovy nickel project in Madagascar.

Sumitomo's CEO, Shingo Ueno, who assumed office on April 1, addressed the situation, highlighting the company's priority of restoring nickel production at Ambatovy to normal levels. The project, which has faced challenges in stabilizing production, is now a subject of careful review with all future policy options, including a potential withdrawal, being considered.

Sumitomo's outlook for the fiscal year ending March 2025 is more optimistic, with a forecasted net profit of 530 billion yen, buoyed by strong performance in its chemical and mineral resources business. The company also unveiled a three-year management plan targeting a net profit of 650 billion yen by March 2027 and a total shareholder return ratio of 40% or more.