Business / Corporate

Marubeni incurs record net loss

JIJI

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.

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