Debt-ridden trading house Sojitz Holdings Corp. reported an 9.8 billion yen net profit for the April-June quarter, reversing a loss of 721 million yen a year earlier.
The company attributed the turnaround to improved profitability after it pulled out from unprofitable energy-related businesses. As a result, revenue fell 20 percent to 1.21 trillion yen.
The firm is lagging behind bigger rivals, including Mitsubishi Corp., which enjoy strong earnings growth from natural resources businesses.
Sojitz is also suffering from debts too heavy for its scale. Its net interest-bearing debts stand at 1.58 trillion yen as of the end of the first quarter.