Sumitomo Corp. said it expects an annual loss of ¥85 billion ($711 million), more than four times the number forecast by analysts, after the trading house posted additional write-downs on its resources investments.
The drop in energy and commodity prices means Sumitomo will need to write down ¥325 billion in asset values from major projects, up from the ¥240 billion in impairments the company expected in September, the Tokyo-based trader said in a statement.
For the fiscal year ending in March 2016, Sumitomo said it expects profits to recover to ¥230 billion as it embarks on a three-year strategy that will include boosting investments in the period to ¥1.2 trillion and paying greater attention to risk management.
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