I'm pleased to report on Mitsubishi Corporation's (MC) operating results for the six months ended September 30, 2009 and our full-year forecasts for the fiscal year ending March 31, 2010.
The global economy had been mired in a serious recession in the wake of the financial crisis that began in the U.S. last fall, but the worst of the recession is now past thanks to pump-priming measures and quantitative easing by countries around the world. However, the pace of economic recovery remained very modest. While the Japanese economy saw some signs of a pickup in economic activity, it still lacks strength because of lackluster U.S., European and certain other overseas economies and stagnant domestic demand.

In this challenging business environment, we reported consolidated net income attributable to Mitsubishi Corporation of 137.4 billon yen, a 52% year-on-year decrease from consolidated net income of ¥289.2 billion recorded in the same period of the previous fiscal year. This decrease was largely attributable to the drastic deterioration in real economies underway since the previous fiscal year. Another key factor was the pull-back from soaring resource prices in the previous fiscal year.
On the other hand, the achievement rate for net income was a solid 62% relative to the full-year forecast of 220.0 billion yen that we announced at the beginning of the fiscal year. In addition, commodity prices are rising, and concerns about possible share write-downs are diminishing in line with improving stock prices. Based on these factors, we have raised our full-year consolidated net income forecast by 20.0 billion yen from the initially forecast 220.0 billion yen to 240.0 billion yen.

We have linked our dividend to consolidated net income in each fiscal year, so that earnings are directly returned to shareholders and set a consolidated payout ratio in the range of 20% to 25%.
Based on this policy, we plan to pay an annual dividend of 34 yen per share for the fiscal year ending March 31, 2010, as initially announced, providing we achieve our recently revised full-year consolidated net income forecast of 240.0 billion yen, which would equate to a consolidated payout ratio of 23%. MC has decided to pay an interim dividend of 17 yen per share, half the projected annual dividend, as originally forecast.

The global economic outlook still remains extremely uncertain, and the recent upturn cannot be taken for granted. However, I believe these times provide prime opportunities for a general trading company like Mitsubishi Corporation. We intend to continue bracing ourselves for new challenges in a changing business environment. At the same time, we will continue to invest in the future, with the aim of delivering sustained growth. Your understanding and continued support will be vital to this endeavor.

November 2009

• Annual Report 2009 "To Our Stakeholders" (1.7MB)