Mitsui Mining & Smelting (5706) Q2 2025 earnings summary

Executive summary

• FY2023 1st half sales declined year-over-year due to lower Engineered Materials volumes and weaker metal prices, with profits also down from higher energy costs and inventory factors.

• FY2023 full-year forecast raised for sales and profits, driven by a weaker yen, improved Mobility segment sales, and inventory factor improvements.

Financial highlights

• 1H FY2023 net sales: ¥312.1B, down 8.8% year-over-year; operating income: ¥4.7B, down 80%; ordinary income: ¥16.9B, down 50.4%; net income: ¥8.1B, down 70.8%.

• FY2023 full-year forecast: net sales ¥630.0B (+4.1% vs. previous forecast), operating income ¥21.0B, ordinary income ¥33.0B, net income ¥18.0B.

• Interim dividend per share: ¥70; full-year forecast: ¥140 per share.

Outlook and guidance

• FY2023 ordinary income forecast raised by ¥13.0B to ¥33.0B compared to August, reflecting improved inventory factors, FX gains, and tax refunds.

• 2H FY2023 ordinary income forecast at ¥16.1B, slightly above previous guidance, with operating profit expected to rise sequentially.

• Sales volumes in Engineered Materials expected to decrease, but overall sales to rise due to currency effects and Mobility segment growth.