Mitsubishi Q1 profit down 43 per cent, beats forecasts despite offshore wind hit

Japanese trading house Mitsubishi on Monday posted a net profit of JPY203.1 billion ($1.4 billion) in the three months to June 30, down 43 per cent from a year ago but beating analysts' forecasts.

An LSEG poll of analysts had expected the company to post JPY180.3 billion in first-quarter net profit. In the same period last year, Mitsubishi saw a net profit of JPY354.4 billion.

This year, profit was mainly down due to the absence of gains from asset sales and because of lower prices in the Australian steelmaking coal business, the company said.

Mitsubishi left its forecast for the fiscal year ending next March unchanged at JPY700 billion.

Asked about the impact of US tariffs, Chief Financial Officer Yuzo Nouchi said there was no notable direct impact on first-quarter earnings, although some indirect effects were felt through affiliates.

"Uncertainty over the economic impact of US tariffs on the US, Chinese, and broader Asian economies could indirectly affect our businesses going forward," he told a news conference.

Regarding its domestic offshore wind power projects, Mitsubishi is still reviewing their feasibility and aims to complete the assessment around this summer, Nouchi said.

"At this point, we are not in a position to definitively estimate the additional losses we may incur from these projects," he said.

In February, Mitsubishi booked a JPY52.2 billion ($353 million) impairment charge on its domestic offshore wind projects for the nine-month period ended December, and said it was reviewing how to proceed with the projects given rising costs and interest rates among other factors.

Billionaire investor Warren Buffett's Berkshire Hathaway has taken minority stakes in Japan's top five trading houses, including Mitsubishi.

(Reporting by Katya Golubkova and Yuka Obayashi; Editing by Kim Coghill)