Message from Management
To Our Stakeholders
In fiscal 2008, the year ended March 31, 2009, growth in emerging nations drove the world economy during the first half, with soaring prices for natural resources, including record-setting crude oil prices, characterizing a strong economic environment.
In the second half, however, conditions took a sudden turn, with the business environment flipped on its head by turmoil in financial markets, a decelerating global economy, plummeting prices, rapid appreciation of the yen, and other factors.
As a result, Marubeni’s consolidated net income declined for the first time in 7 years, to ¥111.2 billion. This decline mainly reflected downward pressure on earnings from precipitous drops in resource, share and commodities prices, the yen’s rapid appreciation, and conservative measures taken to avert potential future losses in real estate and various operating affiliates.
Our earnings power, however, actually strengthened again during fiscal 2008, with gross trading profit, adjusted operating profit, and core earnings achieving record highs for the second, fourth, and fifth consecutive years, respectively.
In fiscal 2009, although there appear to be a few bright spots in terms of market prices and economic indicators, business conditions will likely remain challenging. In the face of these conditions, Marubeni will take a measured approach to management, focusing on balance sheet management and enhancement of earnings strength as priority issues.
In the past three years, Marubeni has made over ¥900 billion in new investments. We look forward to harvesting the fruits of our labors in fiscal 2010 and beyond. Particularly in these difficult times, we will work as a partner that always transcends their expectations, overcoming each management issue to achieve the sustainable growth envisioned in “SG2009.”
I would like to thank all of you for your kind support, and ask for your continued help and encouragement going forward.
June 2009
Teruo Asada, President and CEO
