MIRA
INFORM REPORT
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Report Date : |
18.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
MITSUBISHI HEAVY INDUSTRIES LTD |
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Registered Office : |
2-16-5 Konan Minatoku Tokyo 106-8215 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Jan 1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Comprehensive heavy machinery
manufacturer. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 69736.8 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name
MITSUBISHI HEAVY INDUSTRIES LTD
REGD NAME
Mitsubishi Jukogyo KK
MAIN OFFICE
2-16-5 Konan Minatoku Tokyo 106-8215 JAPAN
Tel : 03-6716-3111
URL : http://www.mhi.co.jp/
E-Mail address: info@mhi.co.jp
ACTIVITIES
Comprehensive heavy machinery mfr
BRANCHES
Osaka, Nagoya, Fukuoka, Sapporo, Hiroshima, other (Tot 8)
FACTORY(IES)
Nagasaki, Kobe, Shimonoseki, Yokohama, Hiroshima, other (Tot
9)
Overseas offices & representatives: (Tot 9)
CHIEF EXEC
TSUKUDA KAZUO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 2,792,108 M
PAYMENTS REGULAR CAPITAL Yen 265,608 M
TREND STEADY WORTH Yen 1,376,289 M
STARTED 1950 EMPLOYES 62,212
COMMENT
COMPREHENSIVE HEAVY MACHINERY MFR. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 69,736.8 MILLION, NORMAL 30 DAYS
TERMS.
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
The subject company is the largest comprehensive heavy machinery mfr. Core of Mitsubishi group. Involved in various operations, such as power plants, bridges, environmental systems, aircrafts/space ships, theme parks & air-conditioning with more than 700 kinds of products. (For products, see OPERATION). Fills majority of orders for arms from Defense Agency and by far leads others in this sector. Clients include major electric power industries, Defense Agency, other.
(Recent news released 10/04/2007): The firm will raise annual wind turbine production capacity to 1,200mw by 2009 from today’s 400mw. The firm will spend Yen 3 billion by 2008 to build a second plant at a joint venture in Northern Mexico. This plant will roll out 1,800 30- to 40-meter wind turbine blades a year. The decision came from the need to boost Mexican output to meet demand in the USA, the destination for more than 90% of the blades. (From the Nikkei edition).
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
2,792,108 million, a 7.8% up from Yen 2,590,733 million in the previous term, supported
by strong plant orders overseas. Sales
grew steeply in all the sectors, particularly conspicuously in power systems
and aerospace divisions. The recurring
profit was posted at Yen 50,365 million and the net profit at Yen 28,816
million, respectively, compared with Yen 12,538 million recurring profit and
Yen 4,049 million net profit, respectively, a year ago.
For the term just ended Mar 2007 the firm revised upward the
earlier projections, seeing Apr/Dec/2006 results; Sales Yen 3,000,000 million
(up from 2,950,000 million); recurring profit Yen 80,000 million (up from
66,000 million) and the net profit Yen 46,000 million (up from 44,000
million). New orders expanded. Prime movers, aerospace & medium-volume
products lead earnings. Offshore structures, machinery and steel structures
also improved.
Apr/Dec/2006 results: Sales Yen 2,048,655 million (up 10.6%),
operating profit Yen 73,798 million (up 78.0%), recurring profit Yen 57,523
million (up 89.0%), net profit Yen 38,461 million (up 83.3%). (% compared with the same period the
previous year). The firm cites brisk
sales of forklifts, marine engineers and higher number of thermal power plant
projects overseas. Losses from
shipbuilding and ocean development division have shrunk from a year earlier,
thanks to the improved bottom line in its shipbuilding operations
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 69,736.8 million, on normal 30 days terms.
REGISTRATION
Date Registered: Jan
1950
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 6,000
million shares
Issued: 3,373,647,813
shares
Sum: Yen
265,608 million
Major shareholders (%): Master Trust Bank of Japan, T (5.1), Japan Trustee Services Bank, T (4.3), State S. BT
(3.9), Nomura Trust Bank (Bank of Tokyo-Mitsubishi UFJ) (3.7), Meiji Yasuda Life Ins
(3.3), Tokio Marine & Nichido Fire Ins (1.8), Chase Bank (London) (1.4), State SBT (1.3),
Japan Trustee Services Bank, 4 (1.0); foreign owners (30.1)
No. of shareholders: 283,425
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya,
Sapporo, Fukuoka
Managements: Takashi Nishioka, ch; Kazuo Tsukuda, pres & CEO; Jun’ichi Maezawa, dir; Yoshimi
Uratani, dir; Tsutomu Takaoka, dir; Takeo Egawa, dir; Ichiro Fukue, dir; Nobuo Toda,
dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Mitsubishi Caterpillar Forklift America, other (Tot 200 as
of Dec/06)
OPERATION
Activities: Comprehensive heavy machinery mfr (Sales breakdown by divisions, as amended by Apr/Dec/2006 results)
Shipbuilding & offshore structure (12.5%): ships, industrial carriers, navigation systems, oil storage facilities, patrol boats, offshore production facilities, repairing & conversion)
Power systems (27.0%): combined power plants, diesel power plants, maritime devices, LNG power plants, thermal power generating plants, instrument control devices.
Machinery & steel structure (14.5%): steel bridges, tunnel ventilation equipment, energy-related facilities, material handling equipment, distribution equipment, flood prevention & irrigation works, underground construction equipment, water supply systems, cranes, conveyors, mechanical parking systems, environmental devices, compressors & mechanical drive turbines, chemical plants, oil & gas production plants, testing & measuring equipment, iron & steel machinery, seawater desalination plants.
Aerospace (12.4%): defense aircrafts, aero engines, guided weapon systems, civil aircrafts & aero engines, space systems
Mass & medium-lot manufactured machinery (30.6%): forklifts, compressors, small-medium sized engines, tractors, industrial robots, paper & printing machinery, construction machinery, special vehicles, turbo chargers, distribution equipment, refrigeration systems, other
Others (3.0%): machine tools, precision cutting tools, automotive components, other.
(Overseas trading ratio 43.9%: Asia 18.7%, N America 11.6%, Europe
6.5%, Latin America 3.9%, Mid East 2.0%, Africa 0.6%, other region 0.6%).
Clients: [Mfrs, electric powers, governments, wholesalers] Defense Agency, Tokyo Electric Power, Kyushu Electric Power, Shikoku Electric Power, Kansai Electric Power, Mitsubishi Motors, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Sumitomo Corp,
Metal One, Mitsubishi Electric, Kawasaki Heavy Ind, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
MUFG (H/O)
Mitsubishi Trust Bank (H/O)
Relations: Satisfactory
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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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2,792,108 |
2,590,733 |
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Cost of Sales |
2,460,819 |
2,300,894 |
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GROSS PROFIT |
331,288 |
289,838 |
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Selling & Adm Costs |
260,376 |
275,065 |
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OPERATING PROFIT |
70,912 |
14,772 |
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Non-Operating P/L |
-20,547 |
-2,234 |
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RECURRING PROFIT |
50,365 |
12,538 |
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NET PROFIT |
28,816 |
4,049 |
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BALANCE SHEET |
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Cash |
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195,185 |
211,911 |
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Receivables |
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1,097,403 |
1,048,892 |
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Inventory |
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971,508 |
958,513 |
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Securities, Marketable |
1,549 |
2,571 |
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Other Current Assets |
277,840 |
243,758 |
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TOTAL CURRENT ASSETS |
2,543,485 |
2,465,645 |
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Property & Equipment |
765,236 |
736,500 |
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Intangibles |
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35,769 |
33,726 |
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Investments, Other Fixed Assets |
702,632 |
595,273 |
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TOTAL ASSETS |
4,047,122 |
3,831,144 |
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Payables |
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669,667 |
649,144 |
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Short-Term Bank Loans |
307,772 |
298,268 |
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Other Current Liabs |
649,223 |
620,575 |
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TOTAL CURRENT LIABS |
1,626,662 |
1,567,987 |
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Debentures |
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213,311 |
213,334 |
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Long-Term Bank Loans |
563,748 |
548,643 |
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Reserve for Retirement Allw |
108,710 |
109,797 |
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Other Debts |
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140,631 |
66,194 |
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TOTAL LIABILITIES |
2,653,062 |
2,505,955 |
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MINORITY INTERESTS |
17,770 |
15,211 |
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Common
stock |
265,608 |
265,608 |
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Additional
paid-in capital |
203,864 |
203,854 |
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Retained
earnings |
718,479 |
741,234 |
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Evaluation
p/l on investments/securities |
193,372 |
110,460 |
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Others |
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120 |
(6,006) |
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Treasury
stock, at cost |
(5,154) |
(5,173) |
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TOTAL S/HOLDERS` EQUITY |
1,376,289 |
1,309,977 |
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TOTAL EQUITIES |
4,047,122 |
3,831,144 |
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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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73,928 |
107,065 |
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Cash
Flows from Investment Activities |
-104,065 |
-163,321 |
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Cash
Flows from Financing Activities |
7,974 |
57,933 |
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Cash,
Bank Deposits at the Term End |
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176,274 |
189,780 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
1,376,289 |
1,309,977 |
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Current
Ratio (%) |
156.36 |
157.25 |
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Net
Worth Ratio (%) |
34.01 |
34.19 |
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Recurring
Profit Ratio (%) |
1.80 |
0.48 |
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Net
Profit Ratio (%) |
1.03 |
0.16 |
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Return
On Equity (%) |
2.09 |
0.31 |
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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%)