28 August 2002 05:33 [Source: ICIS news]
SINGAPORE (CNI)—Japanese chemicals trading major Mitsui & Co has revised up by 6% its operating profit forecast to Yen37bn ($312m/Euro318m) for the first half of its financial year to 30 September 2002 from Yen35bn due to better than expected earnings from its chemicals, metals and consumer goods/services divisions.
The company has revised H1 sales up by 2% to Yen6.2trn from the Yen6.1trn originally forecast in May this year. It has also raised expectations of gross profit by 2% to Yen265bn from Yen260bn. The forecast increase has been attributed to expectations of improved earnings from the company’s US chemicals subsidiary and iron ore transactions.
The original H1 net profit forecast of Yen30bn has been retained due to falling crude oil prices and a rapidly strengthening yen, which is dragging down gross profit on sales in the company’s energy division.
Mitsui has increased by 150% its provision for accounts receivable to Yen5bn from Yen2bn. The increase is attributed to possible bad debts incurred by the machinery and mechanical divisions.
Falling dollar interest rates have helped the company reduce its interest payments forecast by 43% to Yen4bn from Yen7bn.
Mitsui has revised up by 44% its investment-related gains to Yen13bn from Yen9bn due to restructuring of affiliates.
The company has for the moment retained its original full-year fiscal forecast through to 31 March 2003 of a net profit of Yen80bn on sales of Yen13.2trn. This is liable to change.
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