Marubeni boosts investment, shareholder returns after strong earnings

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TOKYO, Aug 3 : Japanese trading house Marubeni Corp said on Monday it will increase investment allocation and shareholder returns under its three-year business plan through March 2028, citing strong earnings and cash flow.    

• Marubeni raised planned investment by 250 billion yen ($1.6 billion) to 1.35 trillion yen and increased its shareholder return target by 200 billion yen to 900 billion yen.

• "Our growth strategy initiatives are gaining momentum and beginning to yield results, which are becoming particularly evident in our cash flow," Chief Financial Officer Chijo Tajima told reporters.

• Given its robust investment pipeline, including several large-scale projects, the company decided to step up capital allocation to investments offering relatively high returns, he added.

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• New investment is likely to be relatively substantial in the United States, where geopolitical risks are lower and Marubeni has a strong presence, Tajima said.

• The trading house reported a 21 per cent increase in April-June first-quarter net profit to 186.4 billion yen, driven by stronger earnings from higher prices in copper, aluminium and coking coal, as well as improved performance in its chemical and aerospace businesses.

• The company has produced "extremely favourable" results so far, Tajima said, adding that it would closely monitor performance, including the possibility of an upward revision of its full-year profit forecast when it announces second-quarter results.

• Copper prices are expected to remain firm over the medium to long term, supported by demand from the artificial intelligence and semiconductor sectors, while aluminium prices are also expected to trend higher over the longer term, Tajima said. However, aluminium prices have retreated to pre-Middle East war levels and are likely to remain around current levels in the second half of fiscal 2026.($1 = 156.5800 yen)

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