Mitsubishi Corporation has forecasted earnings of JPY200bn (1.87bn) for FY 2021 because of the COVID-19 pandemic’s negative impact on the company’s business. 

 

Consolidated net income in the first three months of FY2021, which ended June 2020, totaled JPY36.7bn compared to JPY161.2bn during the same period in FY2020. 

 

The company’s net income for industrial material, like steel, dropped to JPY0.6bn in Q1 FY2021 from JPY11.4bn in Q1 FY2020, mainly because of lower demand from the automotive and construction sectors, which caused steel prices to decline.

 

The Japanese company’s mineral resource net income also declined to JPY20bn in Q1 FY2021 from JPY59bn in the first quarter of FY2020. Again, this occurred because coal prices decreased on low demand from the steel industries in Europe, India, and Japan. 

 

The company’s total revenue in the first three months of FY2021 dropped by 32.2pc to JPY2.6mn from JPY3.9mn in Q1 FY2020. 

 

JPY1 = $0.0094

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