Latest Financial Results (IFRS)

Consolidated Financial Results for the First Quarter Ended June 30, 2017

In the three-month period ended June 30, 2017, conditions in the global economy held firm as emerging economies recovered following the stabilization of resource prices.
The Company’s net sales (JGAAP) for the three-month period ended June 30, 2017, rose year on year due to increased sales in the Metals & Coal Division, a result of higher coal and precious metal transactions, as well as increased sales in the Chemicals Division, a result of the new acquisition of a European chemical distributor and marketing company and higher plastic resin transactions. Gross profit rose following higher selling prices in overseas coal businesses, increased profit in the Chemicals Division, and a rise in automobile sales volumes in overseas automobile wholesale businesses. As a result of the higher gross profit as well as an increase in share of profit of investments accounted for using the equity method associated with steel operating companies, profit for the period (attributable to owners of the Company) was up.

moreFinancial Results Materials

(Billions of Yen)

FY2016
1QResults
FY2017
1QResults
Difference
Net Sales (JGAAP) 896.3 1,000.7 +104.4
Gross Profit 46.8 51.6 +4.8
Profit for the period attributable to owners of the Company 8.4 14.6 +6.2

Changes of Yearly Financial Results (Cumulative)

Gross Profit

Profit attributable to owners of the Company

Segment Performance [Profit for the period attributable to owners of the Company]

Segment Performance [Profit for the Period (Attributable to owners of the Company)]

(Billions of Yen)

FY2016 1Q FY2017 1Q Difference
Automotive 0.8 2.8 +2.0
Aerospace & IT Business (0.3) 0.3 +0.6
Infrastructure & Environment Business 0.9 0.7 (0.2)
Energy (1.5) (0.4) +1.1
Metals & Coal (0.4) 4.2 +4.6
Chemicals 1.9 2.3 +0.4
Foods & Agriculture Business 1.4 2.1 +0.7
Retail & Lifestyle Business 3.9 1.6 (2.3)
Industrial Infrastructure & Urban Development 0.8 (0.4) (1.2)
Other 0.9 1.4 +0.5

Factor behind year on year change in earnings

Automotive \ 2.8 billion (up \ 2.0 billion YoY)
Increased due to higher automobile sales volumes in overseas automobile assembly and wholesale businesses
Aerospace & IT business \ 0.3 billion (up \ 0.6 billion YoY)
Impoved due to absence of impairment losses on Company-owned ships recorded during the previous equivalent period
Infrastructure & Environment Business \ 0.7 billion (down \ (0.2) billion YoY)
Relatively unchanged year on year
Energy \ (0.4) billion (up \ 1.1 billion YoY)
Loss decreased due to higher crude oil and gas prices as well as sales of certain upstream interests conducted in conjunction with restructuring of asset portfolio
Metals & Coal \ 4.2 billion (up \ 4.6 billion YoY)
Increased due to higher prices of coal and other resources and recovery of steel market conditions
Chemicals \ 2.3 billion (up \ 0.4 billion YoY)
Increased due to new acquisition of a European chemical distributor and marketing company and higher plastic resin transactions
Foods & Agriculture Business \ 2.1 billion (up \ 0.7 billion YoY)
Increased due to firm performance of overseas fertilizer businesses
Retail & Lifestyle Business \ 1.6 billion (down \ (2.3) billion YoY)
Decreased due to absence of gain on sales of commercial facilities in Japan recorded in the previous equivalent period
Industrial Infrastructure & Urban Development \ (0.4) billion (down \ (1.2) billion YoY)
Decreased due to lower real estate transactions

Commodity Prices and Exchange Rates

FY2016 Results
(Apr.-Jun. '16 Avg.)
FY2017 Assumption
(Annual Avg.)
FY2017 Results
(Apr.-Jun. '17 Avg.)
Crude oil (Brent)*1 US$47.0/bbl US$50.0/bbl US$50.8/bbl
Thermal Coal *2 US$51.5/t US$77.5/t US$79.8/t
Exchange rate *3 ¥107.9/US$ ¥110.0/US$ ¥111.4/US$
*1
Impact of fluctuations in the crude oil price on earnings: A US$1/bbl change alters profit for the year (attributable to owners of the Company) by approx. ¥20 million annually.
*2
The results in the above table are cited from the GlobalCOAL NEWC Index and differ from our sales prices.
*3
Impact of fluctuations in the exchange rate on earnings: ¥1/US$ change alters gross profit by approx. ¥0.4 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.1 billion annually, and total equity by approx. ¥1.7 billion annually.

Search