May 14, 2015 / 10:07 PM / 3 years ago

Japan's big trading houses sell assets, trim investments

(Reuters) - Japan’s big trading houses, stung by big asset writedowns in the wake of the global commodities slump, plan to step up asset sales and wind back investment spending by up to $10 billion over the next three years.

* Mitsubishi Corp (8058.T)

FY2014 Net profit, 400.6 bln yen ($3.34 bln), +10.9 pct

Company f‘cast FY2015 net profit, 360 bln yen, -10.1 pct

Net Debt-Equity Ratio (Net DER) as of March 2015: 0.8

Profit boosted in FY2014 by healthy non-resource businesses, but sees lower commodities prices weighing on profits this year.

* Mitsui & Co (8031.T)

FY2014 Net profit, 306.5 bln yen ($2.56 bln), -12.5 pct

Company f‘cast FY2015 net profit, 240 bln yen, -21.7 pct

Net DER as of March 2015: 0.82

Profit fell in FY2014 following 59 billion yen impairment on resource assets. Expects a 22 percent drop in net profit for the year started in April, weighed down by a slump in energy and metals prices.

* Itochu Corp (8001.T)

FY2014 Net profit, 300.6 bln yen ($2.51 bln), +22.5 pct

Company f‘cast FY2015 net profit, 330 bln yen, +9.8 pct

Net DER as of March 2015: 0.98

Latest profit boosted by healthy non-resources businesses. Banking on tie-up with Thailand’s Charoen Pokphand Group (CP) and China’s CITIC Ltd (0267.HK) to take larger stakes in new deals. Plans to keep investment level in line with operating cash flow.

* Marubeni Corp (8002.T)

FY2014 Net profit, 105.6 bln yen ($881 mln), -49.9 pct

    Company f‘cast FY2015 net profit, 180 bln yen, +70.4 pct

    Net DER as of March 2015: 1.72

    Profit was halved in FY2014 on hefty impairment losses on oil, coal, and copper as well as its grains unit Gavilon. Sees a rebound in profit this year, driven by its core food and machinery segment and lack of writedowns.

    * Sumitomo Corp (8053.T)

    FY2014 Net loss, 73.2 bln yen ($610 m) vs 223 bln yen profit

    Company f‘cast FY2015 net profit, 230 bln yen

    Net DER as of March 2015: 1.4

    Posted first annual loss in 16 years due to weak commodities prices. Sees return to profit in FY2015 on higher income from non-natural resources operations, such as car sales and power generation. Expects investment on resources to account for about 10 percent of its total spending over next three years.

    ($1 = 119.9200 yen)

    Reporting by Yuka Obayashi; Editing by Richard Pullin

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