⚠ The Coal LossLow threat

ITOCHU (8001) — threat to the moat

ITOCHU's coal business lost money while its iron ore carried the division.

Within IMEA, the coal business lost ¥12.3 billion in the year to March 20261. ITOCHU's Australian coal business had already been the subject of impairments and asset-sale losses in the year to March 20162.

IMEA, year to March 2026 (¥ bn)122.6Iron ore-12.3Coal110.2IMEA totalITOCHU results presentation, May 2026
Coal took a tenth off the iron ore profit.

Coal is a declining part of the portfolio, and its losses reduce the resource profit that iron ore earns.

The company's exposure to politically sensitive regions is small: assets in the Middle East and in Russia and Ukraine are each less than 1% of total assets3.

The measure is whether the coal loss narrows. A return to breakeven would remove a drag of more than ¥12 billion.

References
  1. ReportedWithin IMEA, the coal business lost ¥12.3 billion in the year to March 2026.
    ITOCHU Corporation, FY2025 Business Results and FY2026 Management Plan - results of major group companies by segment, with ownership, including FamilyMart, CTC, DESCENTE, NIPPON ACCESS, IMEA and Orchid (CITIC). — FY to March 2026 · publ. 14 May 2026 · source ↗
  2. ReportedITOCHU's Australian coal business had already been the subject of impairments and asset-sale losses in the year to March 2016.
    ITOCHU Corporation, Financial Section 2016 - results for the years to March 2015 and 2016, including the CITIC acquisition and the Australian coal impairment. — FY to March 2015-2016 · publ. 2016 · source ↗
  3. ReportedThe company's exposure to politically sensitive regions is small: assets in the Middle East and in Russia and Ukraine are each less than 1% of total assets.
    ITOCHU Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - statements of comprehensive income, financial position and cash flows, the segment information by eight division companies, the share split, dividends, the buyback plan and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
Sources
Generated September 24, 2026