Mitsubishi Corp. Shares Surge After It Boosts Net Profit Forecast

Mitsubishi Corp. Shares Surge After It Boosts Net Profit Forecast

Mitsubishi Corp. shares rose sharply Monday morning after the company raised its fiscal-year net profit forecast due to strong coal, natural gas and car businesses and announced a share buyback.

The shares were recently 7.2% higher at 4,609 yen after rising as much as 7.7% earlier.

Mitsubishi said Friday after market close that net profit climbed 48% to Y955.76 billion ($7.29 billion) for the nine-month period ended Dec. 31. Nine-month revenue increased 32% to Y16.285 trillion.

The company attributed the profit increase to higher market prices in the Australian metallurgical coal business, stronger earnings in the car business in Southeast Asia and the liquefied natural gas-related business, as well as gains on the sale of a real-estate management company.

The Japanese trading company raised its net profit forecast to Y1.150 trillion for the fiscal year ending March, from its previous view of Y1.030 trillion.

Mitsubishi also boosted its fiscal-year dividend forecast to Y180 per share, up from Y155 previously projected and the Y150 it paid the previous fiscal year.

Mitsubishi also said it would buy back up to Y100.0 billion of its own shares from Feb. 16 to April 30.

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