MIRA
INFORM REPORT
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Report
Date : |
3rd
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
MARUBENI CORPORATION |
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Registered
Office : |
1-4-2 Ohtemachi Chiyodaku Tokyo 100-8088, Japan |
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Country: |
Japan |
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Financials
(as on): |
31.03.2005 |
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Date
of Incorporation : |
1949 |
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Legal
Form : |
Limited Company |
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Line
of Business : |
A general trading house |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
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 65849
million |
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Status
: |
Satisfactory
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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
KATSUMATS, PRES & CEO
Yen Amount :
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
7,939,437 M
PAYMENTS REGULAR CAPITAL Yen
231,789 M
TREND STEADY WORTH Yen 443,152 M
STARTED 1949 EMPLOYES 24,739
COMMENT
GENERAL
TRADING HOUSE, CORE OF FUYO GROUP FIRMS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS:
US$230,000 / 180 DAYS.
MAX
CREDIT LIMIT: YEN
65,849 MILLION, NORMAL 30 DAYS TERMS.
Forecast (or estimated)
figures for 31/03/2006 fiscal term
HIGHLIGHTS
This is one of the leading general trading houses,
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 through CATV network.
The firm has decided to withdraw from a petrochemical JV, PT Chandra
Asri, in Indonesia, saying it has agreed to sell its 24.59% stake in the
venture to Commerzbank International Trust (Singapore) Ltd.
(Recent reports): * Marubeni will obtain
production and development
rights from Pioneer Natural Resources Co. for six fields off Texas, Louisiana
and other Gulf Coast sites, for Yen 130,000 million, aiming to raise its output
to 80,000 bbls/day. Crude oil from
these projects will be shipped within the United States. This marks the firm’s largest ever investment.
*Marubeni & others in corporate consortium, led by Indonesian
firm Renaissance Capital, is to finalize negotiations to acquire two
coal-mining firms in Indonesia, PT Alutmin Indonesia and PT Kalitim Indonesia,
with purchase price estimated at some Yen 370,000 million. Coals are expected to export to Japan and
China.
The sales volume for Mar/2005 fiscal term amounted to Yen
7,939,437 million, a 0.4% up from Yen 7,905,640 million in the previous
term. The recurring profit declined by
a 5.2% to Yen 55,852 million from Yen 58,900 million, while the net profit
improved by a 19.3% to Yen 41,247 million from Yen 34,565 million,
respectively, a year ago. The improved
net profits are led by strong earnings growth in its energy & chemicals
businesses. It also booked Yen 21,300
million from a charge of the said sale of Indonesian JV, Chandra Asri.
For the current term ending Mar 2006 the recurring profit is
projected at Yen 130,000 million and the net profit at Yen 85,000 million,
respectively, on an 8.3% rise in turnover, to Yen 8,600,000 million. The firm revised its earlier earnings
prospects to above from: sales Yen 8,000,000 million, recurring profit Yen
92,000 million, net profit Yen 62,000 million.
Driven from worldwide rise in commodity prices the firm’s profits are
expected to post record levels this fiscal year.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 65,849 million, on normal 30 days terms. The proposed amount is considered well
within the firm’s financial capabilities.
REGISTRATION
|
Date Registered |
Dec 1949 |
|
Legal
Status |
Limited
Company (Kabushiki Kaisha) |
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Authorized |
4,500
million shares |
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Issued |
1,494,021,081
shares |
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Sum |
Yen
231,739 million |
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Major
shareholders (%) |
Japan
Trustee Services Bank (6.2), Chase (London) (5.2), Master Trust Bank of Japan
T (4.1), Sompo Japan Ins (3.4), Tokio Marine & Nichido Fire Ins (3.1),
State Street Bank & Trust (2.2), Mizuho Corporate Bank (2.0), Meiji
Yasuda Life Ins (1.2), Nippon Life Ins (1.7), Goldman Sachs International
(1.2); foreign owners (32.2) |
|
No. of
shareholders |
109,827 |
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Listed
on the S/Exchange (s) of |
Tokyo,
Osaka, Nagoya |
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Managements |
Toru
Tsuji, ch; Nobuo Katsumata, pres & CEO; Shigeki Kuwabara, v pres; Akira
Matsuda, s/mgn dir; Makoto Isogai, s/mgn dir; Kazuo Ogawa, s/mgn dir;
Tomoyuki Nakayama, mgn dir; Teruo Asada, mgn dir; Michio Kuwahara, mgn dir;
Masaru Funai, mgn dir |
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Nothing
detrimental is known as to the commercial morality of executives. |
Related companies
Marubeni
Energy, Marubeni Nisshin Feed, Marubeni Pulp & Paper, other (Tot 392 as of
Sept/05)
OPERATION
Activities
General
trading house for import, export and wholesale of (sales breakdown by
divisions): IT, infrastructure, plants, ships (--14%), energy (25%), chemicals,
general merchandise, paper & pulp (16%), foodstuffs (10%), textiles (4%),
metals (6%), transportation, industrial systems (9%), development, construction
(2%), others (14%). (Overseas
operations 50.6%: N America 15.7%; Europe 6.3%; Asia/Oceania 18.6%; other areas
10%).
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
(Consolidated in
million yen)
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Terms Ending: |
31/03/2005 |
31/03/2004 |
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INCOME STATEMENT |
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Annual Sales |
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7,939,437
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7,905,640
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Cost of Sales |
7,503,382
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7,496,179
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GROSS PROFIT |
436,055
|
409,461
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Selling & Adm Costs |
342,929
|
330,032
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OPERATING PROFIT |
85,375
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78,624
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Non-Operating P/L |
-29,523
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-19,724
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RECURRING PROFIT |
55,852
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58,900
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NET PROFIT |
41,247
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34,565
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BALANCE SHEET |
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Cash |
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462,450
|
485,484
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Receivables |
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954,132
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942,214
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Inventory |
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376,480
|
398,617
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Securities, Marketable |
32,946
|
9,445
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Other Current Assets |
267,344
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244,204
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TOTAL CURRENT ASSETS |
2,093,352
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2,079,964
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Property & Equipment |
532,306
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499,514
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Intangibles |
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35,548
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35,477
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Investments, Other Fixed Assets |
1,546,831
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1,639,239
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TOTAL ASSETS |
4,208,037
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4,254,194
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Payables |
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902,867
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878,081
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Short-Term Bank Loans |
659,098
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803,551
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Other Current Liabs |
320,613
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283,186
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TOTAL CURRENT LIABS |
1,882,578
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1,964,818
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Debentures |
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Long-Term Bank Loans |
1,813,722
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1,822,473
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Reserve for Retirement Allw |
9,319
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8,786
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Other Debts |
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18,851
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23,536
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TOTAL LIABILITIES |
3,724,470
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3,819,613
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MINORITY INTERESTS |
40,415
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41,599
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Common stock |
231,789
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231,789
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Additional paid-in capital |
125,436
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125,430
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Retained earnings |
131,195
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94,870
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Evaluation p/l on
investments/securities |
(45,126) |
(59,025) |
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Others |
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0
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0
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Treasury stock, at cost |
(142) |
(82) |
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TOTAL S/HOLDERS` EQUITY |
443,152
|
392,982
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TOTAL EQUITIES |
4,208,037
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4,254,194
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CONSOLIDATED
CASH FLOWS
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Terms ending: |
31/03/2005 |
31/03/2004 |
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Cash Flows from Operating Activities |
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173,824
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201,560
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Cash Flows from Investment Activities |
46,043
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57,983
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Cash Flows from Financing Activities |
-238,057
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-233,938
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Cash, Bank Deposits at the Term End |
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459,194
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478,731
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ANALYTICAL
RATIOS
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Terms ending: |
31/03/2005 |
31/03/2004 |
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Net Worth (S/Holders' Equity) |
443,152
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392,982
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Current Ratio (%) |
111.20
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105.86
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Net Worth Ratio (%) |
10.53
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9.24
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Recurring Profit Ratio (%) |
0.70
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0.75
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Net Profit Ratio (%) |
0.52
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0.44
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Return On Equity (%) |
9.31
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8.80
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RATING EXPLANATIONS
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |