OREANDA-NEWS. Sojitz Group Announced Results for Fiscal Year Ended March 31, 2013.

In the fiscal year 2012 (the fiscal year ended March 31, 2013), the first year of Medium-Term Management Plan 2014: Change for Challenge, the Japanese economy embarked on a recovery trend in the wake of yen depreciation and an equity market rally sparked by the inauguration of a new government in December 2012.

However, economic conditions remained adverse in Europe, China and emerging markets. Net sales, gross profit and ordinary income in the fiscal year 2012, all declined year on year largely as a result of lower prices and reduced demand for commodities in which Sojitz trades. Another contributing factor is that earnings in the fiscal year 2011 (the fiscal year ended March 31, 2012) included 15 months of major overseas subsidiaries' earnings as a result of a change in their fiscal year-end from December to March. Net income increased year on year as a result of non-recurrence of a reversal of deferred tax assets in response to tax reforms. (Figures in brackets represent year-over-year changes).

Net sales: 3,955.9 billion yen (-538.3 billion yen / -12.0%)
- Decrease in net sales in the Consumer Lifestyle Business due to lower trading volumes of cigarettes and marine products
- Decrease in net sales in the Energy & Metal due to decline in resource prices and trading volumes
- Decrease in net sales in the Chemicals due to decline in demand in Europe, China and other parts of Asia Gross profit: 192.1 billion yen (-39.5 billion yen / -17.1%)
- Decrease in gross profit in the Energy & Metal due to decline in resource prices and trading volumes
- Decrease in gross profit in the Machinery due to decrease in the number of vehicles sold by overseas automotive businesses

Ordinary income: 34.5 billion yen (-27.7 billion yen / -44.6%). Operating income decreased due to decrease in gross profit Net income: 14.3 billion yen (+17.9 billion yen / - ). In spite of a decrease in ordinary income, net income increased due to the non-recurrence of the year-earlier reversal of deferred tax assets.