Sojitz Corporation

CLOSE

Latest Financial Results and Full Year Forecast

Consolidated Financial Results for the First Half Ended September 30, 2022

In the six-month period ended September 30, 2022, increasingly strong downward pressure was placed on the global economy by factors including Russia’s military invasion of Ukraine, the economic sanctions placed on Russia in response to this act, high inflation, and the opaque outlook for the Chinese economy.

Despite the dissipation of the impacts of the COVID-19 pandemic, there is a need to carefully monitor factors with the potential to trigger future economic recession, such as high inflation and possible reductions to demand due to the monetary tightening measures of central banks around the world.

Revenue in the six-month period ended September 30, 2022, was up year on year following increases in revenue in the Metals, Mineral Resources & Recycling Division, a result of higher prices for coal; in the Chemicals Division, a result of growth in plastic resin transactions and higher methanol prices; and in the Consumer Industry & Agriculture Business Division, a result of higher lumber and fertilizer prices. Profit for the period (attributable to owners of the Company) was up year on year, despite a rise in SG&A expenses associated with the acquisition of new consolidated subsidiaries, following higher gross profit.

moreFinancial Results Materials

(BN JPY)

FY2021 H1 FY2022 H1 Difference
Revenue 1,000.7 1,273.3 +272.6
Gross profit 117.7 182.2 +64.5
Profit for the period attributable to owners of the Company 39.4 78.9 +39.5

Changes of Yearly Financial Results (Cumulative)

Gross Profit

Profit attributable to owners of the Company

Trends in Financial Data(EXCEL)

Segment Performance (Profit for the Period attributable to owners of the Company) (Cumulative)

Segment Performance

(BN JPY)

FY21 H1 FY22 H1 Difference
Automotive 3.4 4.5 +1.1
Aerospace & Transportation Project 1.4 2.0 +0.6
Infrastructure & Healthcare 1.2 9.0 +7.8
Metals, Mineral Resources & Recycling 16.2 41.8 +25.6
Chemicals 6.8 11.3 +4.5
Consumer Industry & Agriculture Business 4.7 5.9 +1.2
Retail & Consumer Service 1.9 1.4 (0.5)
Others 3.8 3.0 (0.8)

Main factors behind the difference

Automotive ¥4.5 billion (up ¥1.1 bn YoY)
Increased due to yen depreciation in overseas automobile businesses
Aerospace & Transportation Project ¥2.0 billion (up ¥0.6 bn YoY)
Increased due to earnings from aircraft-related businesses
Infrastructure & Healthcare ¥9.0 billion (up ¥7.8 bn YoY)
Increased due to gain on partial sale of equity in overseas telecommunications tower operating business as well as earnings contributions projected from domestic and overseas power generation and LNG businesses
Metals, Mineral Resources & Recycling ¥41.8 billion (up ¥25.6 bn YoY)
Increased due to higher selling prices in coal businesses
Chemicals ¥11.3 billion (up ¥4.5 bn YoY)
Increased due to higher prices of various chemical products and improved profitability
Consumer Industry & Agriculture Business ¥5.9 billion (up ¥1.2 bn YoY)
Increased due to improved profitability in fertilizer businesses and higher selling prices in lumber-related businesses
Retail & Consumer Service ¥1.4 billion (down ¥(0.5) bn YoY)
Decreased due to reduced profitability for imported food products as a result of yen depreciation
Others ¥3.0 billion (down ¥(0.8) bn YoY)

Segment Information(PDF)

Commodity Prices and Exchange Rates

FY21 Results
(Apr.-Sep. avg.)
FY22 Assumption
⇒FY22 H2 Assumption
(Nov 1. 2022)
FY22 Results
(Apr.-Sep.avg.)
Latest Data
(As of Oct. 26, 2022)
Coking coal
*1
US$ 199.5 / t US$ 280.0 / t
[1H:US$ 340.0 / t]
[2H:US$ 220.0 / t]
US$ 345.3 / t US$ 306.8 / t
Thermal coal
*1
US$ 138.3 / t US$ 160.0 / t
⇒US$ 330.0/t (H2)
US$ 401.3 / t US$ 379.3 / t
Crude oil (Brent) US$ 71.2 /bbl ⇒US$ 90.0 / t US$ 104.8 / bbl US$ 95.7 / bbl
Exchange
rate *2
¥110.1 / US$ ¥115.0 / US$
⇒¥140.0 / US$ (H2)
¥135.3 / US$ ¥148.2 / US$
*1 :
Coal prices are based on standard market prices and therefore differ from the Company’s selling prices.
*2 :
Impact of fluctuations in the exchange rate on earnings: \1/US$ change alters gross profit by approx. ¥0.75 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.3 bn annually,
and total equity by approx. ¥1.5 bn annually.

Full Year Forecast of Fiscal Year Ending March 31, 2023

(BN JPY)

FY2021
Results
FY2022
Revised Forecast
(Nov. 1, 2022)
Difference
Gross profit 271.3  340.0  +68.7 
Profit for the Year (attributable to owners of the Company)
82.3  110.0  +27.7 

FY2022 Profit for the Year Forecast by Segment

Caution regarding Forward-looking Statements
This document contains forward-looking statements based on information available to the Company at the time of disclosure and certain assumptions that management believes to be reasonable. Actual results may differ materially based on various factors including the timing at which the changes in economic conditions in key markets, both in and outside of Japan, and exchange rate movements. The Company will provide timely disclosure of any material changes, events, or other relevant issues.

*Dividends per share is the annual dividend forecast for the year ending March 31, 2023.

*The historical Sojitz stock prices provided on this graph are as of previous day.

This Website was created for the purpose of providing information relating to Sojitz corporation. It was not created to solicit investors to buy or sell Sojitz Corporation's stock. The final decision and responsibility for investments rests solely with the user of this Website and its content.

This website contains forward-looking statements about future performance, events or management plans of the Company based on the available information, certain assumptions and expectation at the point of disclosure, of which many are beyond the Company’s control. These are subject to a number of risks, uncertainties and factors, including but not limited to, economic and financial conditions, factors that may affect the level of demand and financial performance of the major industries and customers we serve, interest rate and currency fluctuations, availability and cost of funding, fluctuations in commodity and materials prices, political turmoil in certain countries and regions, litigations claims, change in laws, regulations and tax rules, and other factors. Actual results, performances and achievements may differ materially from those described explicitly or implicitly in the relevant forward-looking statements. The Company has no responsibility for any possible damages arising from the use of information on this website.

Although the information on this website is prepared with the greatest care, the Company does not guarantee the accuracy, continuity or quality of any information provided on this website or that it is up-to-date, nor does it accept responsibility for any damage or loss arising from the falsification of data by third parties, data downloads, etc., irrespective of the reasons therefore.

Please also be aware that information on this Website may be changed, modified, added or removed at any time without prior notice.

Page top