(Alliance News) - Mitsui & Co Ltd on Thursday warned of the potential for global economic deterioration due to US trade tariffs, as it posted a decline in its top and bottom lines and guided a further decrease in earnings for financial 2026.

The Tokyo-based conglomerate said profit attributable to the owners of the parent fell 15% to JPY900.34 billion in the year that ended March 31 from JPY1.064 trillion in financial 2024.

Diluted earnings per share fell 13% to JPY306.47 from JPY352.57.

Driving the weaker earnings was an increase in costs, as revenue improved 10% to JPY14.663 trillion from JPY13.325 trillion.

Mitsui said cost increased to JPY13.374 trillion, rising 11% from JPY12.005 trillion. Selling general and administrative expenses also weighed on the bottom line as they rose 12% to JPY887.71 billion from JPY794.29 billion.

Total finance income was down, falling 34% to JPY70.27 billion from JPY106.91 billion.

Mitsui noted a slowdown in the overall global economy in financial 2025, adding that a recovery led by the US in 2024 has been since met by rising uncertainty linked to tariff increases, which it said is affecting consumer sentiment.

Mitsui also said the sluggish performance present in the Chinese economy continued throughout the financial year.

"Since the beginning of 2025 there have been signs of change as the uncertainty surrounding policies related to tariff increases has started to affect consumer sentiment negatively," said Mitsui.

Shares in Mitsui closed down 3.7% at JPY2,790 on Thursday in Tokyo.

Mitsui expects its annual post-share-split dividend to be JPY100 for financial 2025, including its JPY50 interim dividend. This reflects an 18%, or JPY30, uplift on financial 2024's pre-share-split annual dividend of JPY85.

Mitsui conducted a 2-for-1 share split in July last year.

For financial 2026, Mitsui anticipates its annual dividend rising 15% to JPY115.

Profit for the year attributable to owners of the parent is expected to fall further to JPY770.0 billion.

Mitsui expressed concerns going forward relating to global uncertainty, with these intrinsically linked to recent US tariff measures.

"There are concerns about the risk of deterioration in the global economy due to the expansiveness and high-level of increases to tariffs by the US and the resulting intensification of US-China tensions, which would negatively impact the global economy," said Mitsui.

It continued: "The uncertainty surrounding US policy developments may lead to postponed capital investments, further raising concerns about an economic downturn."

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