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Investing.com -- Mitsubishi Corp. (TYO:8058) reported a net profit of 203.1 billion yen ($1.4 billion) for the April-June quarter, a 43% drop from the same period last year but ahead of analysts’ expectations.
The result exceeded the 180.3 billion yen consensus estimate, according to a poll by LSEG. In the first quarter a year ago, the Japanese trading giant posted a net profit of 354.4 billion yen.
The year-on-year decline was mainly due to the lack of one-off gains from asset sales and softer prices in its Australian steelmaking coal operations, the company said.
Underlying operating cash flow (OPCF) for the first quarter came in at 250.4 billion yen.
Mitsubishi’s April–June results showed strong progress against full-year guidance, with underlying OPCF and net income representing 28% and 29% of the company’s full-year OPCF and net profit targets, respectively.
However, Jefferies analysts noted the quarter was lifted by one-off gains totaling 50.3 billion yen.
These included "22.2bn yen profits on construction completion in energy infrastructure business" and a reversal of tax effects tied to dividends from Lawson for the fiscal year ending March 2025, as well as "28.1bn yen from gain on sale of real estate projects, profits from sales of TH Foods stocks etc."
"Excluding this, earnings progressed generally in-line with company guidance/our expectations," the analysts added.
Mitsubishi maintained its full-year net profit forecast at 700 billion yen for the fiscal year ending March 2026.
The company’s shares rose after the results but later gave up those gains to close down 0.8%.