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July 29 (Bloomberg) -- Mitsubishi Estate Co., Japan’s biggest developer by market value, said first-quarter profit fell 34 percent because the company sold fewer apartments following the country’s earthquake on March 11.
Net income fell to 4.5 billion yen ($57 million) in the three months ended June 30 from 6.8 billion yen a year earlier, the company said in a statement distributed through the Tokyo Stock Exchange today. Sales rose 13 percent to 213 billion yen.
Japanese property companies including Mitsubishi Estate are facing slowing economic growth as the country struggles to rebuild in the wake of the nation’s strongest earthquake and tsunami that led to a nuclear disaster. Revenue from the residential business fell 38 percent in the quarter from the same period a year earlier, the Tokyo-based company said today.
Mitsubishi Estate has said it expects housing profit to drop 75 percent this year because of the quake. The company left its net income forecast unchanged at 55 billion yen on sales of 977 billion yen for the year through March 2012.
Shares of Mitsubishi Estate fell 0.4 percent to 1,384 yen at the 3 p.m. close of trading on the Tokyo Stock Exchange.
--Editors: Tomoko Yamazaki, Andreea Papuc
To contact the reporters on this story: Kathleen Chu in Tokyo at Kchu2@bloomberg.net; Katsuyo Kuwako in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Andreea Papuc at email@example.com