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Mitsubishi Corp. H1 Profit Up On Strong Revenues; Lifts FY Earnings View

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Japanese conglomerate Mitsubishi Corp. (MBC.L,MSBHY.PK) reported Friday higher profit in its first half, with significantly higher revenues. Further, the company raised its forecast for fiscal 2019 attributable profit.

According to the company, the positive revision in full-year earnings view reflected solid progress of operating income in both the Business and Market-related sectors, despite large one-off losses in this year.

For the first half, profit attributable to Owners of the Parent grew 19.8 percent to 309.31 billion yen from 254 billion yen last year. Earnings per share were 194.55 yen, up from 159.82 yen a year ago.

Profit before tax climbed 20.1 percent from last year to 450.55 billion yen.

In the Business-related sector, net income increased due to solid operating income in the LNG-related business, the Asia automotive business, etc., despite large one-off losses.

In the Market-related sector, net income increased due to higher operating income in the Australian coal business, etc.

Revenues were 7.94 trillion yen, an increase of 117.2 percent from last year's 3.66 trillion yen. The growth was mainly due to an increase of transactions in which identified performance obligations of the company are transfer of goods as principal and therefore revenue is recognized in the gross amount of consideration with the application of IFRS 15.

Gross profit was 994.5 billion yen, an increase of 10 percent year over year, mainly due to higher trading volume in the Australian coal business. Selling, general and administrative expenses remained nearly flat at 691.8 billion yen.

Looking ahead, for the year ending March 31, 2019, the company now expects attributable profit of 640 billion yen or 403.46 yen per share, up 14.3 percent from the previous year. The company previously expected attributable profit of 600 billion yen or 378.27 yen per basic share.

Further, annual dividend per share was revised to 125 yen from 115 yen.

In Japan, Mitsubishi shares settled on Friday at 3,209 yen, up 1.84 percent.

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