MIRA
INFORM REPORT
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Report Date : |
14.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
MARUBENI CORPORATION |
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Registered Office : |
1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Dec 1949 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
A general trading house |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 98697.1 millions |
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Status : |
Fair |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
MARUBENI CORPORATION
REGD NAME
Marubeni KK
MAIN OFFICE
1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088 JAPAN
Tel: 03-3282-2111
Fax: 03-3282-2331
URL: http://www.marubeni.co.jp/
E-Mail address: info@marubeni.co.jp
ACTIVITIES
A general trading house
BRANCHES
Tokyo, Osaka, Nagoya, other (Tot 15 domestic)
OVERSEAS : 48 overseas branches & offices; 27 overseas
corporate subsidiaries with 76 offices, totaling 124 offices in 74 countries.
CHIEF EXEC
NOBUO KATSUMATA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 8,686,532 M
PAYMENTS REGULAR CAPITAL Yen 262,686 M
TREND STEADY WORTH Yen 663,787 M
STARTED 1949 EMPLOYES 27,377
COMMENT
GENERAL TRADING HOUSE, CORE OF FUYO GROUP FIRMS. FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 98,697.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
This is one of the leading general trading house, originated in
Osaka as a textile merchant, with its roots same as the present Itochu Corp,
actually a breakaway from the same roots.
Strong in overseas management dealing in heavy electric machinery,
industrial plants, paper/pulp and chemicals.
Tops in pulps & paper. Also
maintains a strong presence in grain trading.
Recently strength being focused on information communications sector
entering satellite broadcasting thru CATV network. The firm withdrew from a petrochemical JV, PT Chandra Asri, in
Indonesia, with 24.59% state therein
transferred to Commerzbank International Trust (Singapore) Ltd. Acquired crude oil production/development
interests in Gulf of Mexico at cost of Yen 136,000 million: total output exceeding 80,000 bbl/day, up 60%.
(Recent report from The Nikkei 27/Jan/07 edition):
Marubeni signed Yen 16,000 million contract with JSW Steel Ltd, a unit of the Indian Conglomerate Jindai group. Marubeni will supply hot-rolling equipment that turns crude steel into plate. The equipment, made by Mitsubishi-Hitachi Metals Machinery Inc, is capable of making 3.5 million tons of steel plate a year.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 8,686,532 million, a 9.5% hike from Yen 7,936,348 million in the previous term. The recurring profit jumped to Yen 101,453 million and the net profit to Yen 73,801 million, respectively, from Yen 55,852 million recurring profit and Yen 41,247 million net profit, respectively, a year ago. The improved net profits are led by strong earnings growth in its energy & chemicals businesses. By divisions, Chemicals up by 17.2% to Yen 114,500 million, thanks to increased sales of basic chemicals, electronics materials and synthetic resins. Energy was up by 23.5% to Yen 2,191,700 million, led by rising oil prices. Metals up by 20.1% to Yen 122,700 million, spurred by rising prices of coal, iron ore, copper, etc materials.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 187,000 million and the net profit at Yen 115,000 million,
respectively, on a 9.4% rise in turnover, to Yen 9,500,000 million. Energy will enjoy growth on contribution
from new large-scale interests on crude oil.
High commodity and energy prices
will contribute to the growth.
(Apr/Dec/06 results): Sales Yen 6,990,100 million (up 14%),
operating profit Yen 123,700 million (up 18%), recurring profit Yen 156,700 million
(up 26%), net profit Yen 95,600 million (up 54%). (% compared with the same period the last year). Higher energy and resources prices
contributed to the sales growth. Copper
operations grew rapidly, particularly in China, thanks to higher copper prices,
which shot up from the previous US$3,600/ton to more than US$6,000 this fiscal
year. Crude oil exploration in the Gulf
of Mexico also contributed. Profit at
its paper/pulp unit rose
sharply, with the firm in fiscal 2005 pulling out from unprofitable
non-resource operations and acquiring an Indonesian pulp business.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 98,697.1
million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec
1949
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 4,500
million shares
Issued: 1,683,951,165
shares
Sum: Yen
262,686 million
Major shareholders (%): Japan Trustee Services Bank (4.5), Master Trust Bank of Japan T (3.7), Sompo Japan
Ins (3.2), Chase (London) (3.1), Tokio Marine & Nichido Fire Ins (2.9), State Street Bank
& Trust (1.9), Mizuho Corporate Bank (1.8), Meiji Yasuda Life Ins (1.6), Nippon Life Ins
(1.6), Goldman Sachs International (1.5);
foreign owners (32.6)
No. of shareholders: 126,238
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements: Tohru Tsuji, ch; Nobuo Katsumata, pres & CEO; Kazuhiko Sakamoto, v pres; Akira
Matsuda, v pres; Kazuo Ogawa, v pres; Ko Mori, v pres; Teruo Asada, v pres; Mamoru
Sekiyama,
s/mgn dir; Koichi Mochizuki, s/mgn dir; Masaru Funai, s/mgn dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Marubeni Energy, Marubeni Nisshin Feed, Marubeni Pulp &
Paper, other (Tot 388 as of Mar/06)
OPERATION
Activities: General trading house for import, export and
wholesale of:
(Sales breakdown by divisions):
IT, infrastructure, plants ships (--12%); energy (25%);
chemicals, general merchandise, paper & pulp (18%); foodstuffs, textiles
(15%); metals (6%), transportation, industrial systems (9%), development,
construction (2%), others (13%).
Overseas operations 45.5%: N America 9.2%; Europe 7.0%;
Asia/Oceania 19.6%; other regions 9.7%.
Clients: [Mfrs, electric powers, wholesalers] Tokyo Electric Power, Chubu Electric Power, Nissan Motors, Showa Denko, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Nissan Motors, Showa Denko,
Daishowa Paper Mfg, Hitachi Construction Machinery, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
Mizuho Bank (H/O)
Bank of Tokyo-Mitsubishi UFJ (Tokyo)
Relations: Satisfactory
FINANCES
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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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8,686,532 |
7,936,348 |
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Cost of Sales |
8,184,508 |
7,502,953 |
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GROSS PROFIT |
502,024 |
433,395 |
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Selling & Adm Costs |
358,776 |
368,020 |
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OPERATING PROFIT |
143,248 |
65,375 |
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Non-Operating P/L |
-41,795 |
-9,523 |
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RECURRING PROFIT |
101,453 |
55,852 |
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NET PROFIT |
73,801 |
41,247 |
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BALANCE SHEET |
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Cash |
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268,936 |
459,194 |
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Receivables |
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896,781 |
783,001 |
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Inventory |
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395,599 |
376,480 |
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Securities, Marketable |
20,989 |
32,946 |
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Other Current Assets |
586,312 |
441,731 |
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TOTAL CURRENT ASSETS |
2,168,617 |
2,093,352 |
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Property & Equipment |
780,809 |
532,306 |
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Intangibles |
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89,325 |
35,548 |
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Investments, Other Fixed Assets |
1,548,321 |
1,546,831 |
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TOTAL ASSETS |
4,587,072 |
4,208,037 |
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Payables |
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715,370 |
650,387 |
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Short-Term Bank Loans |
368,491 |
344,597 |
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Other Current Liabs |
877,368 |
887,594 |
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TOTAL CURRENT LIABS |
1,961,229 |
1,882,578 |
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Debentures |
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Long-Term Bank Loans |
1,879,739 |
1,813,722 |
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Reserve for Retirement Allw |
9,129 |
9,319 |
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Other Debts |
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26,189 |
18,851 |
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TOTAL LIABILITIES |
3,876,286 |
3,724,470 |
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MINORITY INTERESTS |
46,999 |
40,415 |
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Common
stock |
37,750 |
37,750 |
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Additional
paid-in capital |
155,903 |
125,436 |
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Retained
earnings |
193,772 |
131,195 |
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Evaluation
p/l on investments/securities |
109,035 |
46,661 |
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Others |
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167,653 |
102,252 |
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Treasury
stock, at cost |
(326) |
(142) |
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TOTAL S/HOLDERS` EQUITY |
663,787 |
443,152 |
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TOTAL EQUITIES |
4,587,072 |
4,208,037 |
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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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133,408 |
173,824 |
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Cash
Flows from Investment Activities |
-193,781 |
46,043 |
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Cash
Flows from Financing Activities |
-46,037 |
-238,057 |
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Cash,
Bank Deposits at the Term End |
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368,936 |
459,194 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
663,787 |
443,152 |
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Current
Ratio (%) |
110.57 |
111.20 |
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Net
Worth Ratio (%) |
14.47 |
10.53 |
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Recurring
Profit Ratio (%) |
1.17 |
0.70 |
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Net
Profit Ratio (%) |
0.85 |
0.52 |
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Return
On Equity (%) |
11.12 |
9.31 |
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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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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)