Japan 5 Major Trading Houses Post Higher Profits for 1Q

Japanese 5 major trading houses almost doubled their consolidated net incomes for their metal business segments in April-June 2006 from the same period of 2005. Their profits increased significantly thanks to the higher prices of raw materials for steel making and of nonferrous metals. The sales increase of steel products also pushed up the incomes. Favorable profits are expected to continue mainly for metal resource businesses in and after the next quarter year.Total consolidated net incomes increased by 86% for the metal business segments at the 5 trading houses in April-June 2006 from the same period of 2005. The net incomes of the metal business segments accounted for 32% of total consolidated net incomes of 5 companies. The amount of the net sales increased by 13%, when the sales increased at the all companies other than Mitsui Corporation. The amount of the consolidated gross profit on sales increased by 41%, when the all firms posted the increase. Total consolidated gross assets increased by 20%.Consolidated net income increased by 2.6 times for Mitsubishi Corporation’s metal department in April-June 2006 from the same period of 2005, by 85% for Mitsui Corporation, by 32% for Itochu Corporation, by 28% for Marubeni Corporation and by 24% for Sumitomo Corporation. The growth rate was even higher at the company which holds good interests for metal resources.Metal business department accounted for 44% of Mitsui Corporation’s total net income, 37% at Mitsubishi Corporation, 32% at Marubeni Corporation, 23% at Itochu Corporation and 12% at Sumitomo Corporation.