Mitsui lifts profit estimate on solid demand in auto and shipping

FILE PHOTO: The logo of Japanese trading company Mitsui & Co. is seen in Tokyo, Japan, January 10, 2018. REUTERS/Toru Hanai/File Photo

TOKYO (Reuters) - Japan's Mitsui & Co on Tuesday raised its full-year net profit outlook by 13% to a record high, helped by solid demand for automobiles and tight global shipping markets while surging prices of metals and energy are also expected to lend support.

The trading company lifted its profit forecast for the year to March 31 to 720 billion yen ($6.3 billion) from its August estimate of 640 billion yen. The prediction is higher than a mean 683 billion yen profit based on forecasts from 12 analysts, Refinitiv data shows.

"We were able to capture a global economic recovery in a wide range of business areas," Mitsui Chief Financial Officer (CFO) Takakazu Uchida told a news conference.

That improved outlook was the result of strong trading of chemicals, steel products and food as well as pent-up demand in automobiles and tight markets of bulk carriers and container ships, Uchida said.

The revision comes after Mitsui lifted annual profit outlook in August to 640 billion yen from its April estimate of 460 billion yen.

Net profit for the April-September period nearly quadrupled to a record 404.6 billion yen as soaring prices of iron ore, coal and copper bolstered its profit from metals segment to 271 billion yen from 71.3 billion yen a year earlier.

Reflecting robust earnings, Mitsui raised an annual dividend forecast to 95 per yen from its previous guidance of 90 yen.

The upbeat performance follows strong results of its peer Marubeni Corp.

($1 = 113.5400 yen)

(Reporting by Yuka Obayashi, Editing by Louise Heavens)

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