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Mitsui revised downward FY2008 forecast

Mitsui revised downward FY2008 forecast

In terms of net income, the company has also revised its forecast of ¥195bn down by ¥65bn to ¥130bn, a drop of 33%.

Making the announcement today [30 January], company President, Akimitsu Ashida, said the main reasons behind this move includes significant drops in the dry bulker market, containership freight rate market and cargo trade, and seaborne trade of completed cars.

“These declines stem from deteriorating demand for raw materials such as iron ore, a drop in global consumer spending, and a drain of funds from the market due to tighter credit resulting from a global economic downturn after the Lehman Brothers collapse,” he says.

He also cited a rapid and progressive yen appreciation from late 2008 as a factor in a large decline in ordinary income. “Based on prospects that a recovery in the ocean shipping market will be difficult during the current 4th quarter term, the company made a downward revision in the forecast for FY2008 announced earlier,” he said.