Mitsui & Co.’s Metal Segment to Seek Stable Growth

Mitsui & Co.’s metal segment targets 125 billion yen of consolidated recurring profit for the worldwide business of steel products, raw materials of steel and nonferrous metals in medium term. The segment expects the profit will increase to 1.5 times to 93 billion yen for fiscal 2006 ending March 2007 from fiscal 2005. Mr. Hiroshi Tada, senior executive managing director of the firm said the unit is setting the targets for mid-term plan ending fiscal 2010 and he considers the targets are 90 billion yen for iron & steel raw materials and nonferrous business unit and 35 billion yen for iron & steel products business unit in 5 years from now. The segment tries to seek stable growth through aggressive investment. The segment estimated the consolidated net profit was 73 billion yen for fiscal 2005 as announcement of the half year results compared with 23.6 billion yen for fiscal 2003 and 47 billion yen for fiscal 2004. The profit for the worldwide metal related business including profit at offshore sites increases to 93 billion yen for fiscal 2005 from 61.3 billion yen for fiscal 2004. The profit is 68 billion yen for iron & steel raw materials and nonferrous business and 25 billion yen for iron and steel products business. Mr. Tada, who is in charge of metal business, said the firm keeps investing for metal business aggressively for stable growth. The firm focuses on expansion of mineral and resources interest for future growth and invested more than 40 billion yen for metal field including Goro Nickel project and expansion of iron ore and coal production in Australia in fiscal 2005. The metal segment plans to invest more than 50 billion yen in fiscal 2006 including expansion of Moura coal mine in Australia, development of Lake Lindsay coal mine in Australia, development of Denisovskaya coal mine in Russia and iron ore expansion in Australia and Brazil.