Mitsui & Co., Ltd. (PNK:MITSY) Q3 2024 Earnings Call Transcript
Mitsui & Co., Ltd. (PNK:MITSY) Q3 2024 Earnings Call Transcript February 2, 2024
Mitsui & Co., Ltd. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Tetsuya Shigeta : Good afternoon, I'm Tetsuya Shigeta, CFO. Thank you for joining us today. I will begin with an overview of operating results for the First Nine Months and the Full Year Forecast. I will then hand over to Masao Kurihara, General Manager of the Global Controller Division, who will speak on results in more detail. I will provide a summary of operating results for the first nine months. During the first nine months, we were able to take advantage of earnings opportunities by improving the quality of our business portfolio, which globally spans a wide range of industries. As a result, cooperating cash flow or COCF was JPY769.1 billion and profit was JPY726.4 billion generating earnings outpacing the previous forecast announced at the first half of financial results, which were revised up from the forecast announced at the start of the fiscal year.
In light of the strong progress, we have revised up our full year forecast again. compared to the previous forecast, we have revised up our forecast for COCF. That forms a basis for shareholder returns by JPY40 billion to JPY1 trillion. Furthermore, although the timing of a large-scale asset sale is expected to be shifted to next fiscal year, we have revised up the forecast for profit by JPY10 billion to JPY950 billion due to the good performance of the mineral and metal resources, energy and mobility businesses. I will now explain a progress against the previous forecast. COCF progressed at the high rate due to the upside of the iron ore process in the mineral and metal resources segment, and an increase in dividends from associated companies in the machinery and infrastructure structure segment.
Furthermore, in the energy segment, our assessment is that progress is now steady due to LNG related business contributing to earnings in the second half. Meanwhile, segments impacted by demand decrease lower commodity prices and other factors associated with the slowing of the global economy had a relatively slower rate of progress against the previous forecast. We have revised up our full year forecast for COCF in FY March, 2024 to JPY1 trillion. In the minimum metal resources segment, we made an upward revision of JPY50 billion, mainly due to the rising iron ore prices and an increase in dividend income from [Indiscernible]. In the energy segment, we made an upward revision of JPY10 billion, mainly due to LNG trading and one-time profit.
In the machinery infrastructure segment, we made an upward revision of JPY20 billion, mainly due to an increase in dividend income from associated companies and a decrease in tax payments due to an anticipated shifting timing for the sale of the [Indiscernible] power generation business to next fiscal year. We have also revised up a full year profit forecast to JPY950 billion. In the minimum resources segment, we made an upward revision of JPY35 billion, mainly due to the rise in the iron ore prices and an increase in dividend income from [Valley]. In the energy segment, we made an upward revision of JPY20 billion, mainly due to LNG trading and one-time profit in the machinery and infrastructure segment. We anticipate the sale of the [Python] power generation business being shifted to next fiscal year, and we recorded impairment losses in the power generation and railway businesses.
However, automotive, industrial and construction machinery and the ships businesses drove performance linking the download revision to JPY15 billion. In this section, I will discuss cashflow allocation for the first nine months. Cashing for the period was JPY1,211 billion comprising COCF of JPY769 billion and asset recycling of JPY442 billion. There were numerous asset sales made in Q3, including the sale of shares of International Power Australia Holdings, which operates a power generation business and a power and gas retail business in Australia. The sale of shares in Thorne HealthTech, which operates a high functionality supplement and testing kit business, and the sale of our interest in the U.S. Kaikias Oil Field. Cash Act was JPY1,003 billion comprising investments and loans of JPY769 billion and returns to shareholders of JPY234 billion.
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