Sumitomo Corp Cptl. 55XW Half Yearly Report

  Sumitomo Corp Cptl. (55XW) - Half Yearly Report

RNS Number : 9467P
Sumitomo Corp Capital Europe PLC
31 October 2012




    For Immediate Release





Sumitomo Corporation Announces Quarterly Financial Results for the

Fiscal Year 2012 (Six-month period ended September 30, 2012)



On October 31, 2012, Sumitomo  Corporation announced its consolidated  results 
for the six-month period  ended September 30, 2012,  prepared on the basis  of 
International Financial Reporting Standards (IFRS).



"Profit for the period attributable to owners of the parent" for the six-month
period ended  September 30,  2012 was  129.4 billion  yen, decreased  by  22.1 
billion yen from the same period of the previous year.



In the  six months  under review,  although non-mineral  resources  businesses 
supported the results,  mineral resources  businesses, which  led the  company 
results in the same  period of the previous  year, were affected by  commodity 
prices decline.



When reviewing the quarterly results of  profit attributable to owners of  the 
parent, while first quarter (April-June) was 48.7 billion yen, second  quarter 
(July-September) was  80.7 billion  yen. In  the second  quarter,  non-mineral 
resources businesses, including  extraordinary profit  resulted from  business 
reorganization, covered the decline in mineral resources businesses.



Basic profit*, which indicates after-tax actual earnings power, of non-mineral
resources businesses  in the  second quarter  was 42.4  billion yen,  steadily 
contributing to the results as in the first quarter. 



* Calculation:  (Gross  profit-Selling, general  and  administrative  expenses 
(excluding  provision  for  doubtful  receivables)-Interest  expense,  net  of 
interest income +Dividends)  ×(1-tax rate)  + Share of  profit of  investments 
accounted for using the equity method

Tax rate used in calculating basic profit: FY2012 38%





1. Consolidated Income



○Gross profit was 396.5 billion yen, a decrease of 73.7 billion yen from  the 
same period of the previous year. The decrease includes the impact of Sumitomo
Mitsui Auto Service becoming an associated company.

○Share of  profit  of  investments  accounted for  using  the  equity  method 
decreased by 9.0  billion yen  to 50.4  billion yen.  This was  mainly due  to 
mineral resources businesses. 



○Gain (loss)  on securities  and other  investments, net  includes gain  from 
selling partial share of Jupiter Shop Channel Co., Ltd.





2. Segment Information



○ Profit of  "Mineral Resources,  Energy, Chemical  & Electronics"  decreased 
from the same period  of the previous  year due to  fall in commodity  prices. 
Also, "General  Products &  Real Estate"  decreased since  condo delivery  was 
concentrated in the same period of the previous year.



○  However,  core  businesses  in  other  segments  generally  showed  stable 
performances. 



- Metal Products

Tubular products business in North America, capturing demand of shale gas  and 
shale oil, contributed to the results.



- Transportation & Construction Systems

Automobiles/motorcycles finance  businesses in  Asia showed  recovery in  this 
period. 



- New Industry Development & Cross-function

Aircraft leasing business, which we acquired in this fiscal year with Sumitomo
Mitsui Financial Group, newly contributed to the results.





3. Financial position



○Total assets  as of  September 30,  2012 amounted  to 7,080.0  billion  yen, 
decreased by 146.8 billion yen from March 31, 2012.



○Equity attributable to  owners of the  parent was 1,696.0  billion yen,  the 
same level as  March 31, 2012.  While retained earnings  increased, there  was 
impact of yen appreciation and listed stocks price decline.

 Interest-bearing liabilities (net) were 2,747.6 billion yen, the same level
as March 31, 2012.



○ As a  result, Debt-equity  ratio, net  (Interest-bearing liabilities,  net/ 
Equity attributable to owners of the parent) was 1.6 times.





4. Cash flows



○During the six-month period ended September  30, 2012, net cash provided  by 
operating activities  was  90.7  billion yen.  Our  core  businesses  steadily 
generated cash.



○Net cash  used in  investing activities  was 55.4  billion yen.In  the  six 
months under  review,  we collected  cash  through selling  partial  share  of 
Jupiter Shop  Channel  and  other assets.  On  the  other hand,  we  made  new 
investments of 170 billion yen,  which includes tight oil development  project 
in the U.S. and renewable energy businesses such as wind power and solar power
projects.



○As a result, free cash flow was 35.3 billion yen inflow.



○Through collecting cash and  investing in new growth  areas, we are  further 
expanding our earnings base.





5. Progress for the full fiscal year ending March 31, 2012



○ "Profit for the period attributable to owners of the parent" progressed 50%
of 260 billion yen  annual forecast. In the  six-month period ended  September 
30, 2012, although mineral  resources business was  affected by the  commodity 
prices decline,  extraordinary profit  regarding business  reorganization  and 
stable core businesses in non-mineral resources area contributed to the  whole 
company results.



○The world economy seems to be  more stagnant than expected due to  prolonged 
European sovereign debt issues and  Chinese economy deceleration. Our  initial 
scenario made in  May, 2012, that  the world economy  would gradually  recover 
from the second half of the fiscal year, has begun to decline.



○Looking at  our businesses,  businesses  in "Transportation  &  Construction 
Systems"and "Media, Network & Lifestyle Retail", which led first half results,
are expected to  show stable  performances. On  the other  hand, the  business 
environment of mineral resources businesses  is expected to remain severe.  In 
addition, if  the negative  impact of  the  further down  side risk  of  macro 
economy spread to  the non-mineral  resources businesses,  the annual  results 
could decrease by  approximately 10%  of the  initial annual  forecast of  260 
billion yen. However, taking the progress rate of 50% into account, we  remain 
our annual forecast of 260 billion yen unchanged.





6. Dividend



○We have set the policy to  flexibly decide the consolidated dividend  payout 
ratio in the range of 20% to 30%.  This is based on our fundamental policy  to 
meet shareholders' expectations by  ensuring long-term stable dividends  while 
considering both  the changes  in  the economic  environment and  progress  in 
investment plans.



○The annual dividend for fiscal 2012 is  planned to be 51 yen per share  (the 
annual dividend  for fiscal  year 2011  was 50  yen per  share), applying  the 
consolidated dividend payout ratio of 25%, which was announced on May 7, 2012,
to our annual forecast  of profit of 260  billion yen. Therefore, the  interim 
dividend for fiscal  2012 is  25 yen  per share,  half the  amount of  planned 
annual dividend (the  interim dividend  for fiscal year  2011 was  24 yen  per 
share).



Click on, or paste the following link into your web browser, to view the
associated PDF documents.

http://www.rns-pdf.londonstockexchange.com/rns/9467P_-2012-10-31.pdf

http://www.rns-pdf.londonstockexchange.com/rns/9467P_1-2012-10-31.pdf







For further information contact:

Sumitomo Corporation

Investor Relations Dept.

Phone: +81-3-5166-3469

Fax : +81-3-5166-6292

e-mail: ir@sumitomocorp.co.jp







Cautionary Statement Concerning Forward-Looking Statements

This report includes forward-looking statements relating to our future  plans, 
forecasts,  objectives,  expectations  and  intentions.  The   forward-looking 
statements reflect management's current assumptions and expectations of future
events, and accordingly, they are inherently susceptible to uncertainties  and 
changes in circumstances and are not guarantees of future performance.  Actual 
results may differ materially, for a wide range of possible reasons, including
general industry  and market  conditions  and general  international  economic 
conditions. In light of the many risks and uncertainties, you are advised  not 
to put undue reliance on  these statements. The management forecasts  included 
in this report are not projections, and do not represent management's  current 
estimates  of  future  performance.  Rather,  they  represent  forecasts  that 
management strives to  achieve through  the successful  implementation of  the 
Company's business strategies. The company may be unsuccessful in implementing
its business strategies, and management may fail to achieve its forecasts.

The Company  is  under no  obligation  --  and expressly  disclaims  any  such 
obligation -- to update or alter its forward-looking statements.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


IR MMMFGGMGGZZM -0- Oct/31/2012 10:20 GMT
 
Press spacebar to pause and continue. Press esc to stop.