Quarterly Results for FY2011
On May 7, 2012, Sumitomo Corporation announced its consolidated results for the fiscal year ended March 31, 2012, prepared on the basis of International Financial Reporting Standards (IFRS).
"Profit for the year attributable to owners of the parent" was 250.7 billion yen, increased by 50.4 billion yen representing 25% increase from the previous year. This was the record-high result, surpassing 238.9 billion yen we marked in the year ended March 31, 2008. Basic profit*1, which indicates after-tax actual earnings power, was 251.5 billion yen, same level as the profit.
*1 Calculation: (Gross profit-Selling, general and administrative expenses (excluding provision for doubtful receivables)-Interest expense, net of interest income +Dividends) x 59% (to take into account income taxes) + Share of profit of investments accounted for using the equity method
Gross profit was 918.8 billion yen, an increase of 54.8 billion yen from the previous year. San Cristobal silver-zinc-lead mining project in Bolivia, led by sales prices increase, contributed to the results. Also, earnings increased since expansion of Tanjung Jati B power plant project in Indonesia was completed.
Share of profit of investments accounted for using the equity method increased by 15.0 billion yen to 110.6 billion yen. Iron ore mining businesses in Brazil and South Africa contributed to the results.
In the year ended March 31, 2012, we were able to strengthen our business base as well as financial condition through asset replacement, one of our initiatives under f(x).
Furthermore, we consider our strong performance as a result of our earnings base expanding in not only Mineral Resources but non-mineral resources businesses.
Although uncertainty of world economy remains due to sovereign debt issues in Europe, the world economy is expected to grow gradually. Economy in the United States is expected to be stable since monetary easing will continue. Economy in emerging countries is expected to be stable supported by domestic consumption.
Looking at our businesses, mineral resources businesses are anticipated to decrease due to fall in commodity prices. However, businesses in emerging countries, such as Metal Products and Infrastructure, and businesses in which we have strength, such as Media, Network & Lifestyle Retail, are expected to steadily contribute to our results. Thus, we expect our profit for the year attributable to owners of the parent forecast for the fiscal year ending March 31, 2013 to be 260 billion yen, marking another new record.
We have set the policy to flexibly decide the consolidated dividend payout ratio in the range of 20% to 30%. This is based on our fundamental policy to meet shareholders' expectations by ensuring long-term stable dividends while considering both the changes in the economic environment and progress in investment plans.
The annual dividend for the year ended March 31, 2012 will be 50 yen per share, applying the consolidated dividend payout ratio of 25% to consolidated net income*2 results of 250.7 billion yen. The annual dividend will be increased by 14 yen from the annual dividend for the year ended March 31, 2011, which was 36 yen per share.
As for the annual dividend for the year ending March 31, 2013, we will apply the consolidated dividend payout ratio of 25% based on our dividend policy stated above. Therefore, based on the consolidated net income*2 forecast of 260 billion yen, the annual dividend is planned to be 51 yen per share.
*2 "consolidated net income" presented above is equivalent to "profit attributable to owners of the parent" of the IFRS.
