Mitsubishi Materials Corporation’s (MMC) annual net sales declined by 11.6pc through the first three quarters of its fiscal 2020.
On an annual basis, the company’s operating profit dropped by 30.1pc and its ordinary income dropped by 6.3pc, which led to a 21.6 decline in total net income.
MMC revised its consolidated earnings forecast for the fiscal due to decreased demand for copper, copper alloys, aluminium products, as well as cement, leading to declines in sales, profits and income. Its revised forecast for net sales is 0.7pc below its previous forecast for the fiscal year. The firm’s forecasts for its operating profit and ordinary income decreased by 12.9pc and 4.8pc, respectively, from the previous forecast.
In these nine months, MMC’s net sales on advanced products like copper, copper alloys and aluminium dropped by 10.5pc to ¥389.6bn ($3.5bn) from ¥435.3bn during fiscal 2019. Decreases in sales of automotive- and semi-conductor-related products led to drops in copper and copper alloy sales. Sales of Mitsubishi’s aluminium products dropped due to decreases in sales of regular and bottled cans, and extruded products for the automobile industry. The company’s operating profit and ordinary income also declined by 90.3pc and 82.9pc, respectively, while sales for its other energy-related, precious metals and cement businesses also declined in the first three quarters, leading to drop in total net sales.
An increase in inventory levels led to total assets rising by ¥53.1bn by the end the third quarter to ¥1991.4bn from the same period during the previous fiscal year. With an increase in commercial papers, total liabilities increased by ¥58.4bn to ¥1273.3bn from fiscal year 2019.
$1 = ¥110.68