Marubeni’s Energy, Metals & Resources Unit to Post Record Profit for F2008

Marubeni Corporation’s energy, metals and mineral resources group revised the net profit target upward to 70-75 billion yen for the year ending March 2009 while the group expected 67 billion yen before, which is 10% higher than previous year. The group tries to keep resource investment with expectation for long term demand. The group focuses on iron ore interests for the metals portfolio. With the better assets, the group eyes more than 100 billion yen profit in 3-4 years.

The group expects the full year profit is 51 billion yen for energy and metals and 25-27 billion yen for mineral resources while the group expected 40 billion yen and 27 billion yen each before, which is 31% and 22% higher than previous year. The group gains much from higher metals and resources price.

Under adjustment for the commodity price, the group expects the profit could decrease next year. The group tries to select investment items severer than before under uncertainty. However, managing executive officer Fumiya Kokubu, who is advisor of the group, said the group doesn’t change the long term investment plan. He said the group tries to secure iron ore resources to improve the portfolio of metals and mineral resources.