Marubeni Corp. on Thursday reported a record net loss for the year that ended in March as it booked impairment losses in a wide range of businesses due to the coronavirus pandemic that sent commodities prices tumbling.
The Japanese trading house swung to a consolidated net loss of ¥197.4 billion from a profit of ¥230.8 billion the previous year.
The impairment losses included ¥131.3 billion on oil and gas development, ¥98.2 billion on grain business in the United States and ¥60.3 billion on a copper mining project in Chile.
The company also incurred an impairment loss of ¥39.2 billion from a U.S. aircraft leasing company it purchased recently.
Due to the pandemic, “We’re entering the worst economic crisis since World War II,” Marubeni President and Chief Executive Officer Masumi Kakinoki told a news conference.
The impact of the virus crisis will peak in the first half ending in September, and only a modest recovery will be seen in the second, Kakinoki said.
Marubeni said it expects to swing back to a net profit of ¥100 billion in the year through March 2021.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.
Your news needs your support
Since the early stages of the COVID-19 crisis, The Japan Times has been providing free access to crucial news on the impact of the novel coronavirus as well as practical information about how to cope with the pandemic. Please consider subscribing today so we can continue offering you up-to-date, in-depth news about Japan.