(Adds details, Itochu results)
TOKYO, Feb 3 (Reuters) - Japanese trading houses
Marubeni Corp and Itochu Corp raised their
dividend forecast for the year to March 31 on Friday thanks to
record quarterly profits, and announced share buybacks to reward
investors.
Japanese trading houses are beneficiaries of rising
commodity prices from coal to liquefied natural gas (LNG), in
contrast with domestic utilities peers facing cost inflation and
financial losses.
Marubeni shares rose 3.4% after it boosted its full-year
earnings outlook, while Itochu shares traded 1.2% lower after it
maintained its annual guidance.
Marubeni's net profit in the nine months ended Dec. 31 grew
41.5% to a record 463.5 billion yen. The firm lifted its
full-year profit forecast by 4% to a record 530 billion yen.
"Earnings of our U.K. wholesale and retail power unit called
SmartestEnergy have been robust, while our coking coal and iron
ore businesses in Australia have continued to generate healthy
profits," Marubeni Chief Financial Officer Takayuki Furuya told
a news conference.
"We have also decided to enhance shareholder returns as
we have reinforced our earnings base and financial position,"
Furuya said.
The new policy include progressive dividend scheme to
reflect medium- and long-term profit growth, with an initial
annual dividend being set at 78 yen per share, up from 75 yen
forecast previously.
Marubeni will also conduct a flexible share buyback with the
aim of improving capital efficiency. The amount and timing of
the buyback will be determined based on its new target of a
total payout ratio of around 30% to 35%, it said.
Itochu posted a 3% increase in its April-December net
profit to reach a record high of 682.2 billion yen, achieving
85% of its full-year profit target of 800 billion yen, it said.
The company also increased its full-year dividend forecast
by 10 yen per share to minimum 140 yen per share and said it
would spend 25 billion yen to buy back around 0.5% of its shares
by March 31.
($1 = 128.4800 yen)
(Reporting by Yuka Obayashi and Katya Golubkova; Editing by Tom
Hogue and Jamie Freed)
Messaging: yuka.obayashi.thomsonreuters.com@reuters.net))
