Itochu Announced Consolidated Financial Results for First Half
OREANDA-NEWS. Itochu announced Consolidated Financial Results for the First Half of the Fiscal Year 2014 ending March 31, 2014.
Revenue for the six-month period ended September 30, 2013, increased by 19.4%, or 420.5 billion yen, compared with the same period of the previous fiscal year, to 2,592.6 billion yen. This increase was attributable to higher revenue from the Energy & Chemicals Company, due to higher transaction volume of petroleum products in the energy - related companies and organic chemicals; higher revenue from the Food Company, reflecting acquisition of the Dole business; higher revenue from the Machinery Company, due to higher transaction volume in automobile-related transactions; higher revenue from the Metals & Minerals Company, reflecting higher sales volume of iron ore; and the effect of yen depreciation.
Gross trading profit increased by 7.8%, or 35.2 billion yen, compared with the same period of the previous fiscal year, to 484.7 billion yen. This increase was attributable to higher earnings from the Food Company, mainly due to the acquisition of the Dole business; higher earnings from the Metals & Minerals Company, as a result of higher sales volume of iron ore, which more than offset falling iron ore and coal prices; higher earnings from the Machinery Company, due to increase in automobile-related, construction-machinery-related, plant-related transaction volume; and the effect of yen depreciation.
Selling, general and administrative expenses rose by 7.2%, or 24.2 billion yen, compared with the same period of the previous fiscal year, to 362.7 billion yen, due to higher expenses accompanying the inclusion of new consolidated subsidiaries, including the acquisition of the Dole business and the effect of yen depreciation.
Provision for doubtful receivables deteriorated by 3.7 billion yen, compared with the same period of the previous fiscal year, to a loss of 2.6 billion yen, due to the absence of the gain on reversal of allowance for doubtful receivables in the same period of the previous fiscal year.
Net interest expenses improved by 8.7%, or 0.6 billion yen, compared with the same period of the previous fiscal year, to expense of 6.7 billion yen, due to l ower debt cost despite increase in interest-bearing debt.
Dividends received in creased by 15.3%, or 1.2 billion yen, compared with the same period of the previous fiscal year, to 8.7 billion yen, as dividends from apparel-related and automobile-related investments increased. Consequently, Net financial income, which is the total of Net interest expenses and Dividends received, increased by 1.8 billion yen, compared with the same period of the previous fiscal year, to a gain of 2.0 billion yen.
Gain on investments – net increased by 24.1 billion yen, compared with the same period of the previous fiscal year, to a gain of 36.1 billion yen. This gain was attributable to an increase in gain on sales of investments, a decrease in impairment losses on investment securities and gain on revaluation accompanying the conversion of a mobile-phone-related equity-method associated company into a consolidated subsidiary.
Gain (loss) on property and equipment – net improved by 3.4 billion yen, compared with the same period of the previous fiscal year, to a gain of 0.8 billion yen, due to an improvement in gain on sales of property and equipment and a decrease in impairment losses on property and equipment.
Other – net increased by 1.6 billion yen, compared with the same period of the previous fiscal year, to a gain of 6.4 billion yen, mainly due to an improvement in foreign currency translation.
As a result, Income before income taxes and equity in earnings of associated companies increased by 30.1%, or 38.1 billion yen, compared with the same period of the previous fiscal year, to 164.6 billion yen.
Income taxes increased by 57.4%, or 20.9 billion yen, compared with the same period of the previous fiscal year, to expenses of 57.4 billion yen. Equity in earnings of associated companies in creased by 7.0%, or 4.4 billion yen, compared with the same period of the previous fiscal year, to a gain of 66.9 billion yen.
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