SUMITOMO CORPORATION (SUMITOMO SHOJI KAISHA,LTD.) [8053.T]
TOKYO, May 01 (Pulse News Wire) – Sumitomo Corporation (sumitomo Shoji Kaisha,ltd.) (8053.T) reported on Monday that it expects to incur significant losses due to the sale of its stake in the Ambatovy nickel project. The company decided to sell its entire holding in Summit Ambatovy Mineral Resources Investment B.V.
(SAMRI) and related companies to Ambatovy Mineral Resources Investment Holding Company (AMRI). The transaction, expected to close during the first half of fiscal 2026, will result in a loss of approximately minus $418 million (minus ¥66.90 billion USD, 1 USD = ¥160). In the consolidated financial statements for the quarter ending March 31, 2027, Sumitomo anticipates reporting a loss of around ¥70.00 billion under “Securities Gains/Losses.” Additionally, the individual financial statement for the same period will reflect a loss of roughly ¥85.00 billion under “Extraordinary Expenses,” which includes investment securities disposal losses and other extraordinary expenses.
However, tax benefits associated with the transaction are expected to mitigate some of the overall impact. Sumitomo’s board also approved a share split ratio of four shares for every ordinary share held, effective from July 01, 2026. The earnings per share forecast for the fiscal year ending March 2027 is based on post-split share count, while the previous year's figure reflects pre-split counts.
Without considering the share split, the basic earnings per share would stand at ¥528.
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