Mitsubishi to invest $27 billion in the next three years to drive growth

Mitsubishi Corp, a Japanese trading company, said it would invest 4 trillion yen (about 27 billion dollars) in the next three financial years to boost growth. It also aims to increase its net profit from 1.2 trillion to 1.2 trillion by 2027/28.

Mitsubishi announced its new management strategy for the next three years, starting this month. It also stated that it would continue its basic policy, which includes progressive dividends and flexible buybacks of shares, including a proposal to buy up to 1 trillion Japanese yen worth of its own stock from April 4, 2019 to March 31, 2020.

Mitsubishi will allocate approximately 1 trillion yen over the next three years to capital expenditures for sustaining and growth, while more than 3 trillion will be allocated to growth investments.

It said that if it had surplus cash, it would decide whether to allocate it for investments or increased shareholder returns, after considering the investment pipeline, among other things.

Mitsubishi forecasted a net loss of 950 billion Japanese yen in February. The company had taken a 52.2-billion yen impairment on its domestic offshore projects during the nine months ended in December.

Mitsubishi's net profit for the fiscal year beginning this month is expected to fall to 700 billion Japanese yen. However, it will increase its dividend per share by 10 yen.

According to LSEG, the company's largest investor is Warren Buffett, a legendary U.S. investment firm. Berkshire Hathaway has a stake of 9.67%.

(source: Reuters)