All four - Mitsubishi, Mitsui, Sumitomo and Itochu - forecast strong earnings growth and higher dividends in the current fiscal year.

 

Mitsubishi’s net profit for the year rose 57.2% to a record $US1.7 billion on robust energy sector sales. Group operating profit surged 41% to $US1.7 billion as group revenue rose 13% to $US161 billion.

 

Second largest trading house Mitsui, recorded a group net profit of $US1.14 billion, up 77% and the second year of record profits. Group operating profit jumped 56% to $US1.86 billion, as group revenue rose 11%.

 

Sumitomo’s group net profit jumped 28% to $US800 million, also the second year of record profits. Group operating profit jumped 58% to $US1.05 billion, and group revenue rose 7.6%.

 

Itochu recorded a group net profit of $US733 million, improving on a loss of $US300 million the previous year. Operating profit doubled to $US1.48 billion.

 

The four companies expect to surpass last year's record profits as China's soaring demand for resources boosts prices for commodities including oil, coal and metals.

 

For the current fiscal year ending March 2006, Mitsubishi expects net income to rise 54% to $US2.64 billion, Mitsui predicted a 40% jump, while Itochu and Sumitomo each forecast 29% gains, Bloomberg reported.

 

Mitsubishi expects a group net profit of $US2.6 billion. Mitsui expects a group net profit of $US1.6 billion while Sumitomo forecast a group net profit of $US1.03 billion. Itochu expects a group net profit of $US940 million.

 

Mitsubishi holds substantial equity in Australian coal mines, including 50% of the BHP Billiton Mitsubishi Alliance (BMA) which covers mines such as Blackwater, Crinum Goonyella, Broadmeadow, Gregoy and Peak Downs. It also has about a 10% share in various Coal and Allied projects in New South Wales such as the Moors Creek thermal project.

 

Its investment in coal projects in Australia is expected to add $US650 million to its net income this business year.