Marubeni Cuts Gavilon’s Profit Outlook Due to U.S. Drought
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Marubeni Corp., a Japanese trading company that closed its biggest takeover of Gavilon Group LLC in July, cut its profit estimate for the U.S. grain collector by almost two-thirds this year.
Due to the continuing impact of last year’s U.S. drought, Gavilon may post net income of 5.4 billion yen ($55 million) to 5.5 billion yen in the fiscal year ending March 31, Marubeni Chief Financial Officer Yokihiko Matsumura said at a briefing in Tokyo today. Matsumura in August forecast more than 15 billion yen in profit from Gavilon this year, including gains expected from a revaluation of the asset.