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Itochu's Quarterly Profit Climbs as Machinery, Metals Units Lift Associate Income

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Itochu's Quarterly Profit Climbs as Machinery, Metals Units Lift Associate Income

Itochu (TYO:8001) reported higher attributable profit in the first fiscal quarter, as stronger earnings from associates and joint ventures offset lower gains from asset sales.

The attributable profit rose 3.5% to 293.8 billion yen in the three months ended June 30 from 283.9 billion yen a year earlier, according to the company's earnings release on Monday.

Basic earnings per share attributable to Itochu increased to 42.02 yen from 40.10 yen.

Revenue increased 8.9% to 3.88 trillion yen from 3.56 trillion yen.

Itochu said revenue growth was driven by its energy & chemicals, metals & minerals, ICT & financial business, machinery, and general products & realty segments.

Equity in earnings of associates and joint ventures jumped 75% to 111.6 billion yen, supported by stronger contributions from the machinery, metals & minerals, food, and general products & realty businesses.

The prior-year quarter benefited from gains on the sales of C.P. Pokphand and Provence Hulies, while the latest quarter included a gain from the sale of CIECO Azer.

Itochu said profit was partly weighed down by an "increase in personnel expenses" and the "depreciation of the yen."

It forecast a full-year profit attributable to owners of the parent of 950 billion yen, up 5.5% from the previous fiscal year, and basic earnings per share of 136.75 yen.

The company also announced a share buyback of up to 300 billion yen, saying it remains committed to returning capital to shareholders while maintaining efficient capital management.

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