Sumitomo Corporation Reports Q3 FY2024 Results, Revises Full-Year Forecast Upward

Sumitomo Corporation announced its Q3 FY2024 financial results, reporting a consolidated profit of JPY416.5 billion ($3.48 billion), an increase of JPY12.4 billion from the same period last year. Driven by strong performance in non-mineral resources and higher aluminum prices, the company has revised its full-year forecast upward from JPY530 billion to JPY560 billion ($4.68 billion).

CFO Reiji Morooka attributed the profit increase to robust leasing, real estate, and overseas IPP/IWPP businesses, with non-mineral resources reaching a record high of JPY302 billion. Mineral resources contributed JPY86 billion, bolstered by rising aluminum prices. However, restructuring costs and one-off items, such as a JPY6 billion net loss from the nickel business in Madagascar, impacted overall results.

Despite canceling its ordinary dividend for 2024 to offset costs from acquisitions, including the Neves-Corvo and Zinkgruvan mines from Lundin Mining, Sumitomo remains committed to its shareholder return policy, targeting a total return ratio of 40% or more.

Cash flow from operations totaled JPY492.4 billion, supported by asset sales and steady core business performance. Investments led to an outflow of JPY600 billion, including the acquisition of Net One Systems in the digital sector. Shareholder returns resulted in an outflow of JPY205 billion, leading to a free cash flow deficit of JPY150 billion.

Looking ahead, Sumitomo expects continued strong performance in non-mineral resources and anticipates equity-method earnings from its South African iron ore business in Q4. The company maintains a positive outlook for FY2025, aiming for JPY600 billion in profit, driven by growth in core businesses, new investments, and improved performance in sectors like steel, construction systems, and agribusiness.