Mitsui sees 70 billion yen annual loss on writedowns on copper, LNG assets

[TOKYO] Japanese trading firm Mitsui & Co said on Wednesday it expected a net loss of 70 billion yen (S$850.2 million) for the business year to March 31, against an earlier forecast for a profit of 190 billion yen, hit by hefty one-off losses in its copper and other resource assets.

The company will book a total of 260 billion yen in one-off losses, including a 115 billion yen impairment loss on its copper operation in Chile to reflect a revision to its long-term outlook for the price of the metal, it said in a press release.

Other losses include writedowns on its LNG project in Australia, as well as on other energy and metal assets.

Like international oil majors and mining companies, Japanese trading firms have been caught flat-footed by the rout in commodities brought about by softening demand from top consumer China where economic growth has slowed.

REUTERS