Japan Trading Houses to Deliver Record Profit, Macquarie Says

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.

To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net

To contact the editor responsible for this story: Andrew Hobbs at ahobbs4@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.