Buffett’s Favored Japan Trading Firms Post Solid Earnings
- Results held up in June quarter despite lower commodity prices
- Berkshire Hathaway raised stakes in trading houses this year
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Japanese trading houses — a darling of Warren Buffett’s — posted strong earnings last quarter, despite a drop in commodity prices over the period and China’s disappointing economic rebound.
The five major trading firms — Mitsubishi Corp., Mitsui & Co., Sumitomo Corp. Marubeni Corp. and Itochu Corp. — all beat net-income estimates for the first quarter of Japan’s fiscal year in reports issued this week. Mitsubishi and Mitsui said they will consider additional shareholder returns depending on future results. Itochu said it will buy back up to 0.4% of shares for 25 billion yen.