Japanese trading houses including Marubeni Corp. are expected to report record profits during the 2012 Japanese financial year because of strong prices for natural resources, Macquarie Group Ltd. said.
“The key factor behind the rapid recovery in profits is the strong demand and pricing environment for natural resources,” Macquarie Equities Research analysts Janet Lewis and Kenjin Hotta said in a report dated Jan. 21. “The quick recovery to record profits, however, is all the more impressive as it has come despite the ongoing weakness in the Japanese economy.”
Japan’s major trading houses, Mitsubishi Corp., Mitsui & Co., Marubeni, Itochu Corp. and Sumitomo Corp., are set to report profits exceeding records reached in the 2008 financial year ending March 31, with metals and energy the key drivers.
Macquarie’s commodities team last week raised forecasts for the price of copper, iron ore, coal and oil, prompting earnings revisions for the Japanese trading houses, Lewis said.
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