Japanese trading houses — a darling of Warren Buffett’s — posted strong earnings last quarter, despite a drop in commodity prices over the period and China’s disappointing economic rebound.

The five major trading firms — Mitsubishi, Mitsui, Sumitomo, Marubeni and Itochu — all beat net-income estimates for the first quarter of the fiscal year in reports issued this week. Mitsubishi and Mitsui said they will consider additional shareholder returns depending on future results. Itochu said it will buy back up to 0.4% of shares for ¥25 billion.

"We think the strong start in the first quarter will raise expectations for a guidance hike and additional shareholder returns at first-half results,” SMBC Nikko Securities senior analyst Akira Morimoto said in a note released Tuesday after Mitsui reported.

The results should please Buffett, whose Berkshire Hathaway in June raised its stake in the five firms to an average of more than 8.5%. He first invested in the companies in 2020 and traveled to Japan earlier this year to strengthen his ties with the trading houses, known as sōgō shōsha.

The Japanese results are in contrast to energy majors like Exxon Mobil and Shell, which missed estimates on falling gas prices and weak oil-refining margins. While the trading houses are heavily involved in oil, gas and coal, they have wider portfolios ranging from convenience stores to salmon farming.

Mitsubishi’s consumer industry segment, which includes the Lawson convenience store chain and other businesses, booked record profits in the quarter. The company has been able to build a "strong portfolio,” Chief Financial Officer Yuzo Nouchi said at a news conference on Thursday.

Still, the firms said they weren’t immune to the downturn in commodity prices and a stagnating recovery in consumption in China.

Mitsubishi and Mitsui said a drop in metallurgical coal prices had impacted their natural resource segments. Sumitomo’s earnings were affected by a decline in thermal coal, while Itochu was affected by falling paper pulp prices, both of which they blamed on weak Chinese demand.