<article><p class="lead">Japanese trading firm Sumitomo's profit fell by almost 50pc in the 2019-20 fiscal year that ended 31 March, hit by the US-China trade dispute and a global economic slowdown caused by the Covid-19 pandemic.</p><p>Sumitomo made a profit of ¥171.4bn ($1.6bn) in the period, down by 46.5pc from ¥320.5bn a year earlier. Profit in its mineral and energy resource segment was ¥43.2bn, lower by 37pc from ¥68.5bn in 2018-19. </p><p>Impairment charges on a <a href="https://direct.argusmedia.com/newsandanalysis/article/1710862">tight oil and shale gas project in the US</a> amid the oil price slump weighed on 2019-20 profitability. Lower silver, zinc and lead prices also led to a loss at the Minera San Cristobal mining project in Bolivia.</p><p>Sumitomo did not provide a forecast for 2020-21 because of an uncertain market outlook. But it expects its mineral and energy resource segment to be further affected by the Covid-19 pandemic, given <a href="https://direct.argusmedia.com/newsandanalysis/article/2091126">halts to operations</a> at the Ambatovy nickel mine in Madagascar and the Minera San Cristobal project, as well as iron ore mining in South Africa, because of the coronavirus.</p><p>The company also expects its metal and infrastructure segments to be hit by Covid-19 in the next fiscal year, amid weakening metal demand from the <a href="https://direct.argusmedia.com/newsandanalysis/article/2096740">domestic</a> and overseas automobile sectors and delays to power plant construction projects.</p><p class="bylines">By Nanami Oki</p></article>
