Mitsubishi aims to double profit in 3 yrs

Mitsubishi aims to double profit in 3 yrs

Tokyo: Mitsubishi Corp, Japan’s biggest trading house, said it aims to nearly double its profit in three years by expanding investment in resources and growth projects in emerging economies such as Brazil, China and India.

Mitsubishi targets a record net profit of 500 billion yen ($5.7 billion) for the year to March 2013, up from 273.1 billion yen it booked last financial year.

The company expects about 70% of its profit to come from its stakes in coal, oil, copper and other mining and energy projects in the current financial year.

Its investments in the sector will rise to 1 trillion to 1.2 trillion yen over the next three years as it needs to funnel funds for planned expansion of projects including coking coal in Australia, copper in Chile and LNG in Sakhalin, Ken Kobayashi, president of Mitsubishi, told reporters.

Mitsubishi owns 50% of BHP Billiton Mitsubishi Alliance in Australia, the world’s biggest coking coal project, and has a minority stake in Escondida copper project, the world’s biggest, in Chile.

Mitsubishi has earmarked a total 2-2.5 trillion yen in investment spending in the next three years. That compares with its actual investment in the past two years of 970 billion yen.