Mitsubishi likely to cut earnings on rogue oil losses

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The trader has since been fired and reported to the police. FMTNews

Mitsubishi says a trader executed unauthorised transactions disguised as legitimate hedges for customers.

“While the losses should be one-off, they will weigh on earnings in the second quarter,” analyst Akira Morimoto wrote in a note dated Sept 20. Against a backdrop of recent declines in coking coal prices, it seems likely that the firm will have to cut its full-year net income guidance of 600 billion yen , he said.

The Chinese national, whom the company declined to name, was fired and reported to police, according to a statement.His estimate for Mitsubishi’s full-year profit of 582 billion yen excludes the oil trading losses.

 

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