MIRA
INFORM REPORT
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Report Date : |
11th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
SUMITOMO
CORPORATION |
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Registered Office : |
Office Tower Y Harumi Island Triton Square,
1-8-11 Harumi Chuoku Tokyo 104-8610 Japan |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
December
1919 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
General trading house of metals,
industrial machinery, energy & chemicals |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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Maximum Credit Limit : |
YEN 155,902.1 MILLION |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Company name
SUMITOMO CORPORATION
REGD NAME
Sumitomo Shoji KK
MAIN OFFICE
Office Tower Y Harumi Island Triton Square, 1-8-11
Harumi Chuoku Tokyo 104-8610 JAPAN
Tel :
03-5166-5000
Fax :
03-5166-6296
URL : http://www.sumitomocorp.co.jp/
E-Mail address : ir@sumitomocorp.co.jp
(Investor Relations Div)
ACTIVITIES
General trading house of metals,
industrial machinery, energy & chemicals
BRANCHES
Osaka, Nagoya, other (Tot 26 domestic);
123 overseas
CHIEF EXEC
MOTOYUKI OKA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 10,336,265 M
PAYMENTS REGULAR CAPITAL Yen 219,279 M
TREND STEADY WORTH Yen 1,303,975 M
STARTED 1919 EMPLOYES 51,700
COMMENT
LEADING GENERAL TRADING HOUSE, NUCLEUS
OF SUMITOMO GROUP FIRM.FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR
ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 155,902.1
MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for
31/03/2007 fiscal term
HIGHLIGHTS
This is leading general trading house,
dating back to 1919, and a nucleus of Sumitomo group firms. Among trading houses, known for sound
financial standing and stable management.
Active in multimedia field with strong CATV networks. Has JV with TCI, largest CATV provider in
US. Holds largest share in Seiyu, a
major supermarket chain operator, affiliated with Wall Mart. Holds 50% stake in Australian Bulk Alliance
Pty Ltd. Developing large-scale coal-powered thermal power plant project in
Indonesia. Boosting power-related operations
in S/E Asia.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal
term amounted to Yen 10,336,265 million, a 4.4% up from Yen 9,898,598 million
in the previous term. The sharp rise reflects
strong earnings from businesses ranging from metals and natural resources to
transportation equipment and logistics, boosted by rising oil and resources
prices. The recurring profit was posted
at Yen 247,807 million and the net profit at Yen 160,237 million, respectively,
compared with Yen 161,349 million recurring profit and Yen 85,073 million net
profit, respectively, a year ago.
For the current term ending Mar 2007
the recurring profit is projected at Yen 278,000 million and the net profit at
Yen 178,000 million, respectively, on a 4.5% rise in turnover, to Yen
10,800,000 million.
The financial situation is considered
FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 155,902.1 million, on 30
days normal terms.
REGISTRATION
Date Registered : Dec 1919
Legal Status : Limited Company (Kabushiki Kaisha)
Authorized : 2,000 million shares
Issued :
1,250,602,867 shares
Sum :
Yen 219,279 million
Major shareholders (%)
Master Trust Bank of Japan, T (6.7),
Japan Trustee Services Bank T (6.7), Mitsui Sumitomo Ins (2.6), Sumitomo Life
Ins (2.4), State Street Bank & Trust (1.7), Dai-ichi Life Ins (1.4), Chase Manhattan Bank (London)
SL Omnibus Acct (1.3), Nippon Life Ins (1.2), Japan Trustee Services Bank Acct
4 (1.1), Sumitomo Lease (1.1)
No. of shareholders: 37,919
Listed on the S/Exchange (s) of: Tokyo,
Osaka, Nagoya, Fukuoka
Managements
Kenji Miyahara, ch; Motoyuki Oka, pres;
Shuji Hirose, v pres; Kenzo Okubo, v pres; Noriaki Shimazaki, v pres; Nobuhide
Nakaide, v pres; Hisahiko Arai, s/mgn dir; Michihisa Shinagawa, s/mgn dir;
Yoshi Morimoto, mgn dir; Makoto Shibahara, mgn dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies
Sumitomo Auto Lease, Sumisho Computer
Systems, Sumisho Elec- tronics,
Sumitomo USA Inc, other (Tot 626 as of Mar/06)
OPERATION
Activities: General trading house for
import, export and wholesale of:
(Sales breakdown by divisions)
Metals
Div (14%): steel, steel pipes, nonferrous metal
products, metal products for automotive industries;
Transportation
& Construction Machinery Div (16&): ships,
railroad & transportation systems, lease & auto loans for construction
equipment, motor vehicles, aircraft;
Machinery
& Electricity Div (11%): electric power, information
& telecommunications, water & sewage, natural gas-related projects
& pipelines;
Media,
Electronics & Network Business Div (4%): providing
infrastructure & content services with Jupiter Telecommunications Co, a
cable TV operator, other;
Chemicals
Div (6%): electronics & batteries,
bio-related materials, pharmaceuticals, agri cultural
chemicals;
Mineral
Resources & Energy Div (16%): copper, coal, oil, LNG;
Consumer
Goods & Services Div (33%): foodstuff, foods, textiles,
supermarket chain operations, other.
Overseas
Trading Ratio (49%): Asia 7.5%; USA 20.6%, other N
America 4.7%; Europe 11.4%; other
regions 4.8%
Clients
[Mfrs, wholesalers] Sumitomo Metal Ind,
Sumitomo Light Metal Ind, Mazda Motor, Mitsubishi Heavy Ind, Sumitomo Chemical,
Nippon Oil Corp, NEC Corp, Dowa Mining, other.
No. of accounts
3,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Sumitomo Metal Ind,
Sumitomo Chemical, Sumitomo Light Metal
Ind, Nippon Steel, Idemitsu Kosan Co, Mazda Motor, TonenGeneral Sekiyu, Toshiba
Corp, Pan Pacific, Japan Energy,
other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References
SMBC Bank (Tokyo)
Bank of Tokyo-Mitsubishi UFJ (H/O)
Relations: Satisfactory
FINANCES
(Consolidated in million yen)
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME STATEMENT |
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Annual
Sales |
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10,336,265 |
9,898,598 |
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Cost of
Sales |
9,629,618 |
9,335,468 |
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GROSS PROFIT |
706,647 |
563,130 |
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Selling
& Adm Costs |
530,514 |
450,745 |
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OPERATING PROFIT |
176,133 |
112,385 |
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Non-Operating P/L |
71,674 |
48,964 |
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RECURRING PROFIT |
247,807 |
161,349 |
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NET
PROFIT |
160,237 |
85,073 |
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BALANCE SHEET |
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Cash |
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522,000 |
453,891 |
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Receivables |
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1,646,126 |
1,355,706 |
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Inventory |
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705,257 |
503,767 |
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Securities, Marketable |
22,087 |
23,154 |
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Other
Current Assets |
748,870 |
758,515 |
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TOTAL CURRENT ASSETS |
3,644,340 |
3,095,033 |
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Property
& Equipment |
819,503 |
720,392 |
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Intangibles |
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259,264 |
113,567 |
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Investments, Other Fixed Assets |
1,988,787 |
1,604,135 |
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TOTAL ASSETS |
6,711,894 |
5,533,127 |
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Payables |
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1,193,912 |
998,953 |
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Short-Term Bank Loans |
968,112 |
850,751 |
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Other
Current Liabs |
460,490 |
348,354 |
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TOTAL CURRENT LIABS |
2,622,514 |
2,198,058 |
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Debentures |
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Long-Term Bank Loans |
2,447,170 |
2,213,651 |
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Reserve
for Retirement Allw |
13,180 |
11,782 |
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Other
Debts |
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230,364 |
85,708 |
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TOTAL LIABILITIES |
5,313,228 |
4,509,199 |
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MINORITY INTERESTS |
94,691 |
89,037 |
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Common stock |
219,279 |
219,279 |
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Additional paid-in capital |
279,470 |
238,859 |
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Retained earnings |
596,913 |
460,316 |
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Evaluation p/l on investments/securities |
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Others |
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213,767 |
17,083 |
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Treasury stock, at cost |
(5,454) |
(646) |
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TOTAL S/HOLDERS` EQUITY |
1,303,975 |
934,891 |
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TOTAL EQUITIES |
6,711,894 |
5,533,127 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Cash Flows from Operating Activities |
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-62,752 |
-20,831 |
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Cash Flows from Investment Activities |
-141,428 |
-55,833 |
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Cash Flows from Financing Activities |
262,145 |
115,825 |
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Cash, Bank Deposits at the Term End |
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522,000 |
453,891 |
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ANALYTICAL RATIOS
Terms ending: |
31/03/2006 |
31/03/2005 |
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Net Worth (S/Holders' Equity) |
1,303,975 |
934,891 |
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Current Ratio (%) |
138.96 |
140.81 |
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Net Worth Ratio (%) |
19.43 |
16.90 |
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Recurring Profit Ratio (%) |
2.40 |
1.63 |
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Net Profit Ratio (%) |
1.55 |
0.86 |
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Return On Equity (%) |
12.29 |
9.10 |
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RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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