In the nine months ended December 2011, industrialized nations continued their moderate economic recoveries. However, the impact of the European debt problems has gradually deepened and the economies of some European countries have taken a turn for the worse. Emerging economies, meanwhile, continued to grow, although at a slower pace.
In Japan, although the production supply system, which had been damaged by the earthquake, has recovered quicker than expected, the pace of the economic recovery has remained moderate due to a slowdown in the global economy.
Against this backdrop, consolidated operating transactions in the nine months ended December 2011 rose 785.3 billion yen, or 5.5%, year on year to 15,169.7 billion yen. This increase in consolidated operating transactions was mainly attributable to higher crude oil prices and higher transaction volumes in the Energy Business Group.
Gross profit declined 24.8 billion yen, or 2.8%, to 869.3 billion yen, due to lower sales volumes at an Australian resource-related subsidiary, as well as lower transaction volumes at a steel products-related subsidiary.
Selling, general and administrative expenses increased 16.3 billion yen, or 2.7%, year on year to 632.0 billion yen, due to higher expenses in line with increased transactions at consolidated subsidiaries.
In other P/L items, other income - net increased due to improvements in exchange rate-related earnings. However, there was a decrease in gain on marketable securities and investments-net, reflecting the absence of one-time factors. One of these was gains on a share transfer at a Chilean iron ore-related subsidiary recorded in the nine months ended December 2010.
As a result, income before income taxes and equity in earnings of affiliated companies declined 52.2 billion yen, or 12.4%, to 369.3 billion yen.
Net equity in earnings of affiliated companies rose 19.7 billion yen, or 15.2%, to 149.5 billion yen. This increase reflected the impact of higher crude oil and other commodity prices.
Accordingly, net income attributable to Mitsubishi Corporation for the nine months ended December 31, 2011 rose 8.0 billion yen, or 2.2%, to 370.2 billion yen.
