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.