MIRA
INFORM REPORT
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Report Date : |
2nd
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SOJITZ
CORPORATION |
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Registered Office : |
Kokusai Shin-Akasaka Bldg West, 6-1-20
Akasaka Minatoku Tokyo 107-0052, Japan |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
April
2003 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of
chemicals, textiles, foods, metals, other |
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 66,735.4 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
SOJITZ CORPORATION
REGD NAME
Sojitz KK
MAIN OFFICE
Kokusai Shin-Akasaka Bldg West, 6-1-20 Akasaka Minatoku Tokyo 107-0052 JAPAN
Tel :
03-5520-5000
Fax :
03-5520-2390
URL : http://www.sojitz.com/
E-Mail address : info@sojitz.com
ACTIVITIES
Import, export, wholesale of chemicals,
textiles, foods, metals, other
BRANCHES
8 domestic; 64 overseas
SUBSIDIARIES
188 domestic; 409 overseas
CHIEF EXEC
AKIO DOBASHI, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 4,972,059 M
PAYMENTS REGULAR CAPITAL Yen 130,549 M
TREND STEADY WORTH Yen 426,949 M
STARTED 2003 EMPLOYES 17,213
COMMENT
GENERAL TRADING HOUSE, BORN BY THE
MERGER OF FORMER NISSHO IWAI CORP & NICHIMENT CORP. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 66,735.4 MILLION,
30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for
31/03/2007 fiscal term
HIGHLIGHTS
The subject company was established in
Apr 2003 by forming a joint holding company named Nissho Iwai-Nichimen Holdings
Company, and subsequently the two merged in Apr 2004 into Sojitz Corp as
captioned. The holding company, at the
same time, renamed Sojitz Holdings Corporation. The merger was formed in order
to restructure the two firms through supports from financial institutions including
the then UFJ Bank (now Bank of Tokyo-Mitsubishi UFJ), the main bank of the two
firms. On 01/Oct/2005, in order to
further streamline the group’s management framework, Sojitz Holdings merged
with its principal operating arm and wholly owned subsidiary, Sojitz Corporation. The company name changed to Sojitz
Corporation. This is a general trading
house succeeding the business rights & operations of the said two firms,
excluding liquidation or separation of unprofitable divisions &
operations. Major handling items are
machinery, energy & resources, which
former Nissho Iwai Corp was the strongest, and textiles, etc, which the former
Nichimen Corp was stronger.
The sales volume for Mar/2006 fiscal
term amounted to Yen 4,972,059 million, a 6.3% up from Yen 4,675,059 million in
the previous term. Energy, metals &
machinery on upswing backed by hike in energy prices. The recurring profit was posted at Yen 78,773 million and the net
profit at Yen 43,706 million, respectively, compared with Yen 58,088 million
recurring profit and Yen 412,475 million net losses, respectively, a year
ago. Term’s start cumulative losses of
about Yen 55,800 million cleared by drawing on reserves.
For the current term ending Mar 2007
the recurring profit is projected at Yen 89,000 million and the net profit at
Yen 56,000 million, respectively, on a 6.6% rise in turnover, to Yen 5,300,000
million. Growth of energy and metals may slow down, but machinery, aerospace,
chemicals and synthetic resins leading steady expansion.
Half-yearly results ending Sept 2006:
sales Yen 2,529,244 million (up 7.4%), recurring profit Yen 46,394 million (up
8.8%), net profit Yen 31,356 million (up 21%)
(% in parenthesis compared with the same period the year ago.
The financial situation is considered
maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen
66,735.4 million, on 30 days normal terms.
REGISTRATION
Date Registered : Apr 2003
Legal Status : Limited Company (Kabushiki Kaisha)
Authorized : 1,179,000,000 shares
Issued :
550,022,889 shares
Sum :
Yen 130,549 million
Major shareholders (%)
UBS (London) Asia Equities (6.5),
Trustee Bank of Japan T (3.6), Master Trust Bank of Japan T (3.3), Morgan
Stanley Securities (2.7), Leeman Brothers Asia Capital (1.9), State Street Bank
& Trust (1.9), Isao Nasu (1.8), Bank of Tokyo-Mitsubishi UFJ (1.7), JP
Morgan Chase (1.5), E-Trade Securities (1.5); foreign owners (27.2)
No. of shareholders: 104,053
Listed on the S/Exchange (s) of: Tokyo,
Osaka
Managements
Akio Dobashi, pres & CEO; Yutaka
Kase, v pres; Masaki Hashikawa, v pres; Yasuyuki Fujishima, s/mgn dir;
Katsuhiko Kobayashi, s/mgn dir; Keisuke Ishihara, mgn dir; Yoji Sato, mgn dir;
Shigeo Muraoka, dir; Yoshihiko Miyauchi, dir
Nothing detrimental is known as to the
commercial morality of executives.
Related companies
NI Electronics, Sojitz Machinery,
Sojitz Marine & Engineering, Nissin Gas Engineering, other (Tot 321 as of
Mar/06)
OPERATION
Activities: General trading house
(sales breakdown by divisions):
Machinery, aircraft, aerospace (19%),
Energy, metals, resources (24%), chemicals, synthetic resins (13%), building
materials, construction materials, lumber (8%),textiles, household, lifestyle
essentials (17%), others (18%).
Overseas trading ratio
35.2%: N
America
6.5%, Europe
3.3%, Asia
20.3% Oceania
5.0% Others
Clients
[Mfrs, wholesalers] Kobe Steel, NM
Life, First Retailing, Varig SA, other.
No. of accounts
4,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Hitachi Zosen,
Hitachi Ltd, Toyo Rubber, Yamazaki Nabisco, Sun Building Materials, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are
leased and maintained satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFJ (H/O)
Mizuho Corporate Bank (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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4,972,059
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4,675,903
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Cost of Sales |
4,729,892
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4,431,656
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GROSS PROFIT |
242,166
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244,247
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Selling & Adm Costs |
165,964
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178,725
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OPERATING PROFIT |
76,202
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65,521
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Non-Operating P/L |
2,571
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-7,433
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RECURRING PROFIT |
78,773
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58,088
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NET PROFIT |
43,706
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-412,475
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BALANCE
SHEET |
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Cash |
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521,937
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426,082
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Receivables |
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613,513
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618,086
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Inventory |
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214,163
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194,694
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Securities, Marketable |
6,471
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7,150
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Other Current Assets |
154,370
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177,137
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TOTAL CURRENT ASSETS |
1,510,454
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1,423,149
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Property & Equipment |
246,665
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246,652
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Intangibles |
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100,131
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103,850
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Investments, Other Fixed Assets |
664,429
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674,827
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TOTAL ASSETS |
2,521,679
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2,448,478
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Payables |
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451,438
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472,513
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Short-Term Bank Loans |
775,555
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933,100
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Other Current Liabs |
830,610
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349,068
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TOTAL CURRENT LIABS |
2,057,603
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1,754,681
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Debentures |
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99,036
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16,048
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Long-Term Bank Loans |
473,109
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296,927
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Reserve for Retirement Allw |
25,558
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29,046
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Other Debts |
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(597,703) |
38,185
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TOTAL LIABILITIES |
2,057,603
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2,134,887
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MINORITY INTERESTS |
37,125
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33,349
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Common
stock |
130,549
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336,122
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Additional
paid-in capital |
166,754
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487,686
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Retained
earnings |
92,487
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(492,048) |
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Evaluation
p/l on investments/securities |
90,547
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32,629
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Others |
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(53,275) |
(84,062) |
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Treasury
stock, at cost |
(113) |
(86) |
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TOTAL S/HOLDERS` EQUITY |
426,949
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280,241
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TOTAL EQUITIES |
2,521,679
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2,448,478
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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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43,155
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-19,774
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Cash
Flows from Investment Activities |
99,155
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238,410
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Cash
Flows from Financing Activities |
-55,805
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-212,264
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Cash,
Bank Deposits at the Term End |
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506,254
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406,566
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ANALYTICAL RATIOS
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Terms ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
426,949
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280,241
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Current
Ratio (%) |
73.41
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81.11
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Net
Worth Ratio (%) |
16.93
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11.45
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Recurring
Profit Ratio (%) |
1.58 |
1.24 |
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Net
Profit Ratio (%) |
0.88 |
-8.82
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Return
On Equity (%) |
10.24
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-147.19
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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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