<br><br>**Sumitomo's Record Profit Forecast A Proactive Approach Amid US Tariffs**<br><br>In a recent announcement, Japanese trading house Sumitomo Corp. revealed its forecast for the current fiscal year, which includes a record-breaking net profit of 570 billion yen ($4 billion). But what lies behind this impressive projection? And more importantly, why is Sumitomo setting aside a loss buffer despite the potential negative impact of US tariffs?<br><br>**A Year of Strong Financial Performance**<br><br>Sumitomo's financial results for the year ended in March were nothing short of exceptional. The company posted a net profit of 562 billion yen, representing a significant 45.4 percent increase from the previous year and exceeding analysts' expectations of 554.2 billion yen. This impressive growth was driven largely by strong performance in non-mineral resources segments, including real estate.<br><br>**Warren Buffett's Influence on Sumitomo's Success**<br><br>Sumitomo is not alone in its success. Warren Buffett's Berkshire Hathaway is a significant minority shareholder in the company, as well as other Japanese trading houses like Mitsui. Buffett's increasing ownership stake in these companies is likely driven by their strong financial performance.<br><br>**Preparing for Potential Risks**<br><br>So why is Sumitomo setting aside a loss buffer of 40 billion yen? According to the company's statement, while the direct impact of US tariffs is expected to be limited, a certain degree of indirect impact may arise and thus, a loss buffer has been set accordingly. In other words, Sumitomo is taking a proactive approach to mitigate any potential risks that might arise from global trade tensions.<br><br>**Dividend Hike and Share Buyback**<br><br>Sumitomo's financial results also include plans for a dividend hike and share buyback. The company expects to increase its annual dividend payout to 140 yen per share for the fiscal year ending next March, up from 130 yen currently. Additionally, Sumitomo will be buying back up to 2.9 percent of its shares worth 80 billion yen.<br><br>**Ambatovy Nickel Project Sees Increased Output**<br><br>Finally, let's take a look at Sumitomo's Ambatovy nickel project in Madagascar. The company is forecasting output of around 30,000 metric tons this year, up from under 30,000 metric tons last year as issues with the pipeline are being resolved.<br><br>As finance-focused YouTubers, it is crucial to stay informed about market trends and company performances. Sumitomo's record profit forecast and loss buffer announcement are just a few examples of the kinds of stories that can help you make informed investment decisions for your audience.
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