MIRA
INFORM REPORT
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Report Date : |
18.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
ITOCHU CORPORATION |
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Registered Office : |
2-5-1 Kitaaoyama Minatoku Tokyo 107-8807 |
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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 |
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Line of Business : |
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 123,225.4 MILLION |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Name
ITOCHU CORPORATION
REGD NAME
Itochu Shoji KK
MAIN OFFICE
(Tokyo) 2-5-1 Kitaaoyama Minatoku Tokyo 107-8807 JAPAN
Tel: 03-3497-2121
Fax: 03-3497-4141
(Osaka) 4-1-3 Kyutaromachi Chuoku Osaka 541-8577
Tel: 06-6241-2121
Fax: 06-6241-3220
E-Mail address: webmaster@itochu.co.jp
ACTIVITIES
General trading house
BRANCHES
Osaka, Nagoya, Fukuoka,
Hiroshima, Sapporo, other (Tot 20)
OVERSEAS
USA, Europe, China,
other (Tot 135 over 80 countries)
CHIEF EXEC
EIZO KOBAYASHI, PRES
& CEO
Yen Amount
In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 10,473,885 M
PAYMENTS REGULAR CAPITAL Yen 202,241 M
TREND STEADY WORTH Yen
726,816 M
STARTED 1949 EMPLOYES 42,967
COMMENT
NATION’S LEADING
GENERAL TRADING HOUSE. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN
123,225.4 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated) figures for
31/03/2007 fiscal term
HIGHLIGHTS
This is major general
trading house, currently top textile trader among domestic trading companies,
with comprehensive strength in all areas of the textile industry from upstream
to down-stream operations, while actively trying to expand into textile
retailing. Also strong in food industry,
machinery plants, chemicals, energy and condominiums. Further aggressive in
satellite communications to lead other trading houses in telecom & China
businesses. Has stake in Perfect TV satellite broadcaster. Implemented independently managed “division
company system” in Apr 1997. (See OPERATION).
FINANCIAL INFORMATION
The sales volume for
Mar/2006 fiscal term amounted to Yen 10,473,885 million, a 9.4% up from Yen
9,576,039 million in the previous term.
This is driven by strong earnings at its metals & energy businesses
and machinery division. .The recurring profit was posted at Yen 216,869 million
and the net profit at Yen 145,146 million, respectively, a sharp turnaround
from Yen 119,958 million recurring profit and Yen 77,792 million net profit,
respectively, a year ago.
For the current term
ending Mar 2007 the recurring profit is projected at Yen 235,000 million and
the net profit at yen 165,000 million, respectively, on a 4.1% rise in turnover
to Yen 10,900,000 million.
Apr/Jun/2006 results: Sales Yen 2,577,522 million (up
6.2%), recurring profit Yen 64,603 million
(up 57%), net profit Yen 48,141 million (up 62.1%). (% compared with the same
period of previous fiscal year. Total
trading transactions increased mainly in Energy, Metals & Minerals due to
higher prices of crude oil and an increase in transaction volume, and in
Chemicals, Forest Products
& General Merchandise due to higher market prices of chemicals and steady
growth in building market in N
America, the firm says.
The financial situation
is considered FAIR and good for ORDINARY business engagements. Max credit limit
is estimated at Yen 123,225.4 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1949
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 3,000
million shares
Issued: 1,584,889,504
shares
Sum: Yen
202,241 million
Major shareholders (%):
Japan Trustee Services Bank T (9.0), Master Trust Bank of Japan, T (6.5),
Mitsui Sumitomo Ins (3.0), Nippon Life Ins (2.5), Tokio Marine & Nichido
Fire Ins (2.5),Nippon Koa Ins (2.5), Mizuho Corporate Bank (1.9), Asahi Life
Ins (1.7), State Street Bank & Trust (1.8), Trust & Custody Ins (1.8);
foreign owners (28.0)
No. of shareholders:
86,941
Listed on the
S/Exchange (s) of: Tokyo, Osaka, Sapporo, Nagoya, Fukuoka
Managements: Uichiro
Niwa, ch; Eizo Kobayashi, pres & CEO; Makoto Katoh, v ch, Sumitaka Fujita,
v ch; Akira Yokota, v pres; Yohei Watanabe, v pres; Toshihito Tanba, s/mgn dir;
Shigeki Nishiyama, s/mg dir; Masahiro Okafuji, s/mgn dir; Yosuke Minamitani,
mgn dir
Nothing detrimental is
known as to the commercial morality of executives.
Related companies:
Itochu Techno Science, Itochu Shokuhin, other (Tot 442 as of Mar/06)
Subsidiaries &
Associates under Textile Company:
(Domestic): CI Shopping
Service Co Ltd; CI Fabric Ltd; Roy-ne Co Ltd, Itochu Modepal Co Ltd; Unico
Corporation, Tommy Hilfiger Japan Corp; JOI’X Corp; Orizzonti Co Ltd;
(Overseas): Thai Shikibo Co Ltd (Thailand); Hangzhou
Fujitomi Silk Garments Co Ltd (China); Shanghai SSI Auto Textile Inter
Decoration Co Ltd (China); Itochu Wool Ltd (Australia); Itochu Textile
Materials (Asia) Ltd (Hong Kong); Prominent Apparel Ltd (Hong Kong); TTL
Industries Public Co Ltd, other.
OPERATION
Activities: Activities:
A general trading house; Sales breakdown by divisions:
Textile Company (８%): Raw cotton, Cotton yarns, Wool, yarns, Rayon staple, Spun rayon yarns, Rayon yarns, Synthetic staple, Synthetic filament, Cotton fabrics, Wool fabrics, Silk fabrics, Rayon fabrics, Spun rayon fabrics, Synthetic filament fabrics, Knit fabrics, Knit outer garments, Knit under garments, Woven outer garments, Woven under garments, Other garments, Secondary textile products, Imported sundries, Bedding fabrics, Interior fabrics, Industrial fibres, Inorganic fibres and related products, etc.
Machinery Company (1４%): Civil engineering, Construction, Mining and related materials handling machinery, Agricultural machinery, Metalworking and processing machinery and plant, Forging machinery, Textile machinery, Semiconductor manufacturing equipment, Automobile parts manufacturing plant, Plant related to the iron and steel industry, Cement plant, Food machinery, Grain silos, Hospital equipment, Oil, gas, and chemical plants, Passenger vehicles, Commercial vehicles, Automobile parts and equipment, Special-purpose vehicles, Rolling stock, Ships, Power generating equipment, etc.
Aerospace, Electronics & Multimedia Company (7%): Satellite communications, International telecommunications, Terminals and peripheral equipment for broadcasting and communications systems, Entertainment and content business, Systems and related machinery for mobile telephones, Systems and related equipment for computer and information processing, Semiconductor equipment, Aircraft, In-flight equipment, Space-related equipment, Security equipment etc.
Energy, Metals & Minerals Company (2７%): Iron ore, Direct reduced iron, Coking coal, Coke, Thermal coal, Ferro alloy and its materials, Ferrous scrap, Pig iron, Metal powder, Electrodes, Activated carbon, Steel plates, Hot & cold rolled sheets and coils, Galvanized steel, Steel for machinery, Stainless steel, High tensile steel, Construction materials, Welded steel pipes, Seamless steel pipes, Steel wires, Marine steel structures, Bridges, Prefabricated steel for buildings, Rails, Non-ferrous metals, Precious metals, Rare metals, Aluminium, Crude oil, Natural gas liquid (NGL), Gasoline, Naphtha, Kerosene, Jet fuel, Gas oil, Fuel oil, Bunker oil, Lubricant, Asphalt, Liquefied petroleum gas (LPG), Liquefied natural gas (LNG), Nuclear fuel (uranium concentrates, uranium hexafluoride), Nuclear power related equipment
Chemicals, Forest Products & General Merchandise
Company (19%): Logs, Lumber, Wooden building
materials, Wood chips, Wood pulp, Recycled paper, Cotton linter, Paper,
Paperboard, Paper products, Natural rubber, Tyres, Footwear, Furniture, Glass,
Cement crysotile, Landscape materials, Refractory materials and products,
Natural gypsum, etc.
Chemical feedstock, Olefin, Aromatics, Raw materials for synthetic resins, Tar
chemicals, Raw materials for synthetic fibres, Organic chemicals, Methanol,
Ethanol, Solvents, Speciality chemicals, Inorganic chemicals, Chemical
fertilisers, Vinyl chloride, Polyolefin, Synthetic rubbers, Carbon black,
Thermoplastic and thermosetting resins, Resin additives, Glass fibres, etc.
Food Company (21%): Wheat, Barley, Wheat flour, Rice, Starches, Soybeans, Sunflower oil, Olive oil, Palm oil, Coconut oil, Corn, Soybean meal, Rapeseed meal, Fish meal, Alfalfa pellets, Raw sugar, Sweeteners, High-fructose corn syrup, Dairy products, Nuts, Coffee, Cocoa, Fruit juice, Liquor, Soft drinks, Beef, Pork, Chicken, Fruits and vegetables, Processed foods, Frozen foods, Canned foods, Pet foods, Consulting services for food business.
Finance, Realty, Insurance & Logistics Services Company (5%): Finance: Foreign exchange and securities trading, securities and fund investment, asset management (including structuring and sales of financial products), lending, online securities broking, other financial services; Realty: Planning, developing, constructing, contracting, managing, operating, selling related facilities and materials for residential housing, office buildings, resort facilities, golf courses, industrial parks, hotels; Insurance: Insurance and reinsurance agency, broking of insurance and reinsurance, consulting of insurance and reinsurance; Logistics services: Warehousing, trucking, operation of logistics centres, chartering, international intermodal transport, air cargo, travel services, distribution processing, freight forwarding, customs clearance, etc.
(Overseas trading ratio: 41.9%: N America 8.4%; Europe 3.6%, Asia 23.8% Others 8.1%)
Clients: [Wholesalers,
mfrs] Itochu Shokuhin, Yukijirushi Access Inc, Nisseki Itochu, Nishino Trading,
Prima Meat Packers, other.
No. of accounts: 3,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers, carmakers] Mazda Motor, Nippon Steel, Isuzu Motors, Nissin Food
Products, JGC Corp, other.
Payment record: Regular
Location: Business area
in Tokyo. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
Mizuho Corporate Bank
(Uchisaiwaicho)
SMBC (H/O)
Relations: Satisfactory
FINANCES
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(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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10,473,885
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9,576,039
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Cost of Sales |
9,759,511
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8,945,278
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GROSS PROFIT |
714,374
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630,761
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Selling & Adm Costs |
506,257
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466,840
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OPERATING PROFIT |
208,117
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163,921
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Non-Operating P/L |
8,752
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-37,782
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RECURRING PROFIT |
216,869
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119,958
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NET PROFIT |
145,146
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77,792
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BALANCE
SHEET |
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Cash |
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477,707
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452,934
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Receivables |
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1,211,035
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1,085,853
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Inventory |
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458,876
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420,069
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Securities, Marketable |
48,282
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49,149
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Other Current Assets |
483,723
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433,890
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TOTAL CURRENT ASSETS |
2,679,623
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2,441,895
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Property & Equipment |
813,876
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808,282
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Intangibles |
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487,787
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497,358
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Investments, Other Fixed Assets |
815,727
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724,810
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TOTAL ASSETS |
4,797,013
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4,472,345
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Payables |
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921,797
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805,150
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Short-Term Bank Loans |
382,434
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421,697
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Other Current Liabs |
825,595
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833,292
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TOTAL CURRENT LIABS |
2,129,826
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2,060,139
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Debentures |
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Long-Term Bank Loans |
1,762,103
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1,750,815
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Reserve for Retirement Allw |
19,081
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22,405
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Other Debts |
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29,470
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11,653
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TOTAL LIABILITIES |
3,940,480
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3,845,012
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MINORITY INTERESTS |
129,717
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116,936
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Common
stock |
202,241
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202,241
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Additional
paid-in capital |
137,035
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137,024
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Retained
earnings |
315,928
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188,270
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Evaluation
p/l on investments/securities |
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Others |
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72,889
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(16,312) |
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Treasury
stock, at cost |
(1,277) |
(826) |
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TOTAL S/HOLDERS` EQUITY |
726,816
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510,397
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TOTAL EQUITIES |
4,797,013
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4,472,345
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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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185,147
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126,624
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Cash
Flows from Investment Activities |
-79,871
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-127,600
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Cash
Flows from Financing Activities |
-85,193
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-125,342
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Cash,
Bank Deposits at the Term End |
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477,707
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452,934
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
726,816
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510,397
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Current
Ratio (%) |
125.81
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118.53
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Net
Worth Ratio (%) |
15.15
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11.41
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Recurring
Profit Ratio (%) |
2.07 |
1.25 |
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Net
Profit Ratio (%) |
1.39 |
0.81 |
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Return
On Equity (%) |
19.97
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15.24
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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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