MIRA
INFORM REPORT
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Report Date : |
11.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO CORPORATION |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Dec 1919 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
General trading house of
metals, industrial machinery, energy & chemicals |
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 140818.8 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
-- |
name
SUMITOMO CORPORATION
REGD NAME
Sumitomo Shoji KK
MAIN OFFICE
Tel : 03-5166-5000
Fax : 03-5166-6296
URL : http://www.sumitomocorp.co.jp/
E-Mail
address: ir@sumitomocorp.co.jp (Investor
Relations Div)
ACTIVITIES
General
trading house of metals, industrial machinery, energy & chemicals
BRANCHES
CHIEF EXEC
MOTOYUKI
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 10,528,277 M
PAYMENTS REGULAR CAPITAL Yen 219,279 M
TREND STEADY WORTH Yen
1,473,128 M
STARTED 1919 EMPLOYES 53,125
COMMENT
LEADING GENERAL TRADING HOUSE, NUCLEUS OF SUMITOMO GROUP FIRM. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 140,818.8 MILLION, 30 DAYS NORMAL
TERMS.
Forecast (or estimated)
figures for 31/03/2008 fiscal term
HIGHLIGHTS
This is leading general trading house, dating back to 1919, and
a nucleus of Sumitomo group firms. Among trading houses, known for sound
financial standing and stable management.
Active in multimedia field with strong CATV networks. Has JV with TCI, largest CATV provider in US. Holds largest share in Seiyu, a major
supermarket chain operator, affiliated with Wall Mart. Holds 50% stake in Australian Bulk Alliance
Pty Ltd. Developing large-scale coal-powered thermal power plant
project in
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 10,528,277 million, a 1.9% up from Yen 10,336,265 million in the previous term. This reflects strong earnings from businesses ranging from metals and natural resources to transportation equipment and logistics, boosted by rising oil and resources prices. The recurring profit was posted at Yen 231,929 million and the net profit at Yen 211,004 million, respectively, compared with Yen 247,807 million recurring profit and Yen 160,237 million net profit, respectively, a year ago.
For the current term ending Mar 2008 the net profit is projected at Yen 235,000 million, on a 6.4% rise in turnover, to Yen 11,200,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 140,818.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1919
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 2,000 million shares
Issued: 1,250,602,867 shares
Sum: Yen 219,279 million
Major shareholders (%): Master Trust Bank of
Sumitomo Ins (2.6), Sumitomo Life Ins (2.4), State Street Bank & Trust (1.7), Dai-ichi Life
Ins
(1.4), Chase Manhattan Bank (
Japan Trustee Services Bank Acct 4 (1.1), Sumitomo Lease (1.1); foreign owners (34.6)
No. of shareholders: 51,603
Listed on the S/Exchange (s) of:
Managements: Kenji Miyahara, ch; Motoyuki Oka, pres; Shuji Hirose, v pres; Kenzo Okubo, v pres; Noriaki Shimazaki, v pres; Nobuhide Nakaide, v pres; Hisahiko Arai, s/mgn dir; Michihisa Shinagawa, s/mgn dir; Yoshi Morimoto, mgn dir; Makoto Shibahara, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Sumitomo Auto Lease, Sumisho Computer Systems, Sumisho Electronics, Sumitomo USA Inc, other (Tot 626 as of Mar/06)
OPERATION
Activities: General trading house for import, export and wholesale of:
(Sales
breakdown by divisions)
Metals Div (14%): steel, steel pipes, nonferrous metal products, metal products for automotive industries;
Transportation & Construction Machinery Div (16%): ships, railroad & transportation systems, lease & auto loans for construction equipment, motor vehicles, aircraft;
Machinery & Electricity Div (11%): electric power, information & telecommunications, water & sewage, natural gas-related projects & pipelines;
Media, Electronics & Network Business Div (4%): providing infrastructure & content services with Jupiter Telecommunications Co, a cable TV operator, other;
Chemicals Div (6%): electronics & batteries, bio-related materials, pharmaceuticals, agricultural chemicals;
Mineral Resources & Energy Div
(16%): copper, coal, oil, LNG;
Consumer Goods & Services Div (33%): foodstuff, foods, textiles, supermarket chain operations, other.
Overseas Trading Ratio (49%): Asia 7.5%; USA 20.6%, other N America 4.7%; Europe 11.4%; other regions 4.8%
Clients: [Mfrs, wholesalers] Sumitomo Metal Ind, Sumitomo Light Metal Ind, Mazda Motor, Mitsubishi Heavy Ind, Sumitomo Chemical, Nippon Oil Corp, NEC Corp, Dowa Mining, other.
No. of
accounts: 3,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sumitomo Metal Ind, Sumitomo Chemical, Sumitomo Light Metal Ind, Nippon Steel, Idemitsu Kosan Co, Mazda Motor, TonenGeneral Sekiyu, Toshiba Corp, Pan Pacific, Japan Energy, other.
Payment
record: Regular
Location: Business area in
Bank References
SMBC (
MUFG
(H/O)
Relations:
Satisfactory
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FINANCES (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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10,528,300 |
10,336,265 |
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Cost of Sales |
9,670,600 |
9,629,618 |
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GROSS PROFIT |
857,700 |
706,647 |
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Selling & Adm Costs |
618,000 |
530,514 |
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OPERATING PROFIT |
239,700 |
176,133 |
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Non-Operating P/L |
92,200 |
71,674 |
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RECURRING PROFIT |
331,900 |
247,807 |
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NET PROFIT |
211,000 |
160,237 |
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BALANCE SHEET |
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Cash |
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436,814 |
522,000 |
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Receivables |
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1,722,118 |
1,994,091 |
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Inventory |
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757,473 |
705,257 |
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Securities, Marketable |
17,304 |
22,087 |
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Other Current Assets |
2,224,041 |
400,905 |
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TOTAL CURRENT ASSETS |
5,157,750 |
3,644,340 |
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Property & Equipment |
864,691 |
819,503 |
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Intangibles |
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255,526 |
259,264 |
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Investments, Other Fixed Assets |
2,152,510 |
1,988,787 |
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TOTAL ASSETS |
8,430,477 |
6,711,894 |
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Payables |
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1,103,839 |
1,193,912 |
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Short-Term Bank Loans |
461,931 |
968,112 |
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Other Current Liabs |
2,281,633 |
460,490 |
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TOTAL CURRENT LIABS |
3,847,403 |
2,622,514 |
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Debentures |
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Long-Term Bank Loans |
2,764,352 |
2,447,170 |
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Reserve for Retirement Allw |
9,835 |
13,180 |
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Other Debts |
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239,507 |
230,364 |
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TOTAL LIABILITIES |
6,861,097 |
5,313,228 |
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MINORITY INTERESTS |
96,252 |
94,691 |
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Common
stock |
219,279 |
219,279 |
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Additional
paid-in capital |
279,711 |
279,470 |
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Retained
earnings |
772,855 |
596,913 |
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Evaluation
p/l on investments/securities |
262,292 |
251,093 |
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Others |
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(40,002) |
(37,326) |
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Treasury
stock, at cost |
(21,007) |
(5,454) |
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TOTAL S/HOLDERS` EQUITY |
1,473,128 |
1,303,975 |
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TOTAL EQUITIES |
8,430,477 |
6,711,894 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash
Flows from Operating Activities |
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191,235 |
-62,752 |
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Cash
Flows from Investment Activities |
-453,120 |
-141,975 |
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Cash
Flows from Financing Activities |
176,106 |
262,145 |
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Cash,
Bank Deposits at the Term End |
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436,814 |
522,000 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth
(S/Holders' Equity) |
1,473,128 |
1,303,975 |
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Current
Ratio (%) |
134.06 |
138.96 |
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Net
Worth Ratio (%) |
17.47 |
19.43 |
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Recurring
Profit Ratio (%) |
3.15 |
2.40 |
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Net
Profit Ratio (%) |
2.00 |
1.55 |
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Return
On Equity (%) |
14.32 |
12.29 |
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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%)