MIRA
INFORM REPORT
|
Report Date : |
31.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HITACHI LTD |
|
|
|
|
Registered Office : |
1-6-6 Marunouchi Chiyodaku Tokyo 100-8280 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
Feb 1920 |
|
|
|
|
Legal Form : |
Limited Company (Kabushiki Kaisha) |
|
|
|
|
Line of Business : |
Manufacturing of electrical machinery |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Yen 154063.3 millions |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
NAME
HITACHI LTD
REGD NAME
Hitachi Seisakusho KK
MAIN OFFICE
1-6-6 Marunouchi Chiyodaku Tokyo 100-8280 JAPAN
Tel : 03-3258-1111
Fax : 03-3258-5480
*.. The given address is one of its Tokyo Branch Division.
URL : http://www.hitachi.co.jp/
E-Mail address: webmaster@hitachi.com
ACTIVITIES
Mfg of electrical machinery
BRANCHES
Osaka, Nagoya, Yokohama, other (Tot 10)
FACTORY(IES)
(subsidiaries)
CHIEF EXEC
KAZUO FURUKAWA, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 9,464,801 M
PAYMENTS REGULAR CAPITAL Yen 282,033 M
TREND STEADY WORTH Yen 2,507,773 M
STARTED 1920 EMPLOYES 355,879
COMMENT
MFR OF COMPREHENSIVE ELECTRICAL MACHINERY. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 154,063.3 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
This is the largest comprehensive mfr of electrical machinery, with heavy electric machinery and social infrastructure systems as mainline. Also makes semiconductors & computers. Has business alliance with Mitsubishi Electric in field of system LSIs, and NEC in field of DRAMs Has strong presence in China. The firm restructured its HDD operations, of which losses are said diminishing. The firm concentrates resources on growing segments such as its plasma-panel operations; having taken over a JV plasma-panel maker it operated with Fujitsu Ltd in Apr 2005. Maintains tie-ups for reciprocal technology exchange with big US firms. The firm currently consigns production of TVs in Europe to a local partner.
FINANCIAL INFORMATION
The sales volume for Mar/2005 fiscal term amounted to Yen
9,464,801 million, a 4.9% up from Yen 9,027,043 million in the previous
term. This is attributed to higher
sales of electronics materials, heavy industrial machinery and consumer
electric goods. The recurring profit
was posted at Yen 274,864 million and the net profit at Yen 37,320 million,
respectively, compared with Yen 264,506 million recurring profit and Yen 51,496
million net profit, respectively, a year ago.
Profits hit the historical highs.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 280,000 million and the net profit at Yen 55,000 million,
respectively, on a 2.5% rise in turnover, to Yen 9,700,000 million. Power and industrial systems remain
steady. Profitability of information,
power and industrial systems improving steadily. Integrating and reorganizing plant businesses in bid to improve
groupwide efficiency.
(Fourth quarterly
results ending Dec/2006): Sales Yen 7,259,200 million ‘up 9%), operating
profit Yen 81,400 million (down 30%), recurring profit Yen 88,400 million (down
38%), net losses Yen 76,800 million (widened from the previous 5,400
million). (% compares with the same
period the previous year). The sales
decline is in part because of July-Sept expenses relating to accidents
involving nuclear reactor turbines and to US thermal power generation
operations. Excluding one-time expenses
for its power generation operations, Hitachi's poor performance can be
attributed to slumps in three businesses: hard-disk drives, plasma TVs, and LCD
displays. Plasma TVs prices declined
sharply due to harsh competition.
The financial situation is considered FAIR and good for
ORDIANARY business engagements. Max
credit limit is estimated at Yen 154,063.3 million, on normal 30 days terms.
REGISTRATION
Date Registered: Feb
1920
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 10,000
million shares
Issued: 3,368,126,056
shares
Sum: Yen
282,033 million
Major shareholders (%): Nats Cumco (8.6), State Street Bank
& Trust (5.9), Master Trust Bank of
Japan T (5.6), Japan Trustee Services Bank (4.6), Chase Manhattan Bank (London)
(3.1), Nippon Life Ins (2.9), Employees’ S/Holding Assn (2.7), Assets Custody Services Trust (1.7), Meiji Yasuda
Life Ins (1.4); foreign owners (39.5)
No. of shareholders: 306,865
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, Sapporo, Fukuoka, Luxemburg, Frankfurt, Amsterdam, Paris, New York
Managements: Etsuhiko Shoyama, ch; Kazuo Furukawa, pres;
Michiharu Nakamura, v pres; Hiroaki
Nakanishi, v pres; Takashi Hatchoji, v pres; Takashi Miyoshi, v pres; Shigeharu
Mano, v pres; Tadahiko Ishigaki,
s/mgn dir; Kunihiko Ohnuma, s/mgn dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Hitachi Chemical Co, Hitachi Cable, Hitachi Metals, other (Tot
932 as of Mar/2006)
OPERATION
Activities: Manufactures comprehensive electrical machinery:
(Sales breakdown by
divisions): Information & Communications (21%); Electronics (11%);
Power & Industrial Systems (25%); Consumer Electric Appliances (12%),
Functional Materials (15%); Distribution & Others (11%); Financing
(5%).
(Overseas sales ratio
38.5%: Asia (Chin, Singapore, etc); 17.1%, N America (USA, Canada) 10.3%,
Europe (UK, Germany) 7.9%, other region (Oceania, etc) 3.2%).
Clients: [Mfrs, wholesalers] Kawasaki Heavy Ind, Hitachi System
& Services, Hitachi Consumer Marketing, Hitachi Capital, Shimizu Corp, Nikko
Kiden, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Hitachi Industries, Hitachi
Plant Construction, Hitachi System & Services, Hitachi Capital, Hitachi
Communications Technologies, 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 (H/O)
MUFG (Tokyo)
Relations: Satisfactory
|
FINANCES (Consolidated
in million yen) |
|
||||
|
|
|
Terms Ending: |
31/03/2006 |
31/03/2005 |
|
|
INCOME STATEMENT |
|
|
|||
|
|
Annual Sales |
|
9,464,801 |
9,027,043 |
|
|
|
Cost of Sales |
7,387,744 |
6,961,270 |
||
|
|
GROSS PROFIT |
2,077,057 |
2,065,773 |
||
|
|
Selling & Adm Costs |
1,821,045 |
1,786,718 |
||
|
|
OPERATING PROFIT |
256,012 |
279,055 |
||
|
|
Non-Operating P/L |
18,852 |
-13,549 |
||
|
|
RECURRING PROFIT |
274,864 |
265,506 |
||
|
|
NET PROFIT |
37,320 |
51,496 |
||
|
BALANCE SHEET |
|
|
|
||
|
|
Cash |
|
658,255 |
708,715 |
|
|
|
Receivables |
|
2,303,397 |
2,065,194 |
|
|
|
Inventory |
|
1,262,308 |
1,198,955 |
|
|
|
Securities, Marketable |
|
|
||
|
|
Other Current Assets |
1,288,845 |
1,365,971 |
||
|
|
TOTAL CURRENT ASSETS |
5,512,805 |
5,338,835 |
||
|
|
Property & Equipment |
2,460,186 |
2,357,931 |
||
|
|
Intangibles |
|
|
|
|
|
|
Investments, Other Fixed Assets |
2,048,204 |
2,039,481 |
||
|
|
TOTAL ASSETS |
10,021,195 |
9,736,247 |
||
|
|
Payables |
|
1,416,367 |
1,246,401 |
|
|
|
Short-Term Bank Loans |
752,527 |
676,611 |
||
|
|
|
|
|
|
|
|
|
Other Current Liabs |
1,952,557 |
2,141,534 |
||
|
|
TOTAL CURRENT LIABS |
4,121,451 |
4,064,546 |
||
|
|
Debentures |
|
|
|
|
|
|
Long-Term Bank Loans |
|
|
||
|
|
Reserve for Retirement Allw |
827,669 |
1,033,005 |
||
|
|
Other Debts |
|
1,527,495 |
1,409,813 |
|
|
|
TOTAL LIABILITIES |
6,476,615 |
6,507,364 |
||
|
|
MINORITY INTERESTS |
1,036,807 |
921,052 |
||
|
|
Common
stock |
282,033 |
282,033 |
||
|
|
Additional
paid-in capital |
561,484 |
565,360 |
||
|
|
Retained
earnings |
1,778,203 |
1,779,198 |
||
|
|
Evaluation
p/l on investments/securities |
|
|
||
|
|
Others |
|
(95,997) |
(301,524) |
|
|
|
Treasury
stock, at cost |
(17,950) |
(17,236) |
||
|
|
TOTAL S/HOLDERS` EQUITY |
2,507,773 |
2,307,831 |
||
|
|
TOTAL EQUITIES |
10,021,195 |
9,736,247 |
||
|
CONSOLIDATED CASH FLOWS |
|
|
|||
|
|
|
Terms ending: |
31/03/2006 |
31/03/2005 |
|
|
|
Cash
Flows from Operating Activities |
|
690,875 |
565,356 |
|
|
|
Cash
Flows from Investment Activities |
-501,362 |
-526,988 |
||
|
|
Cash
Flows from Financing Activities |
-261,638 |
-99,429 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
658,255 |
708,715 |
|
|
ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
|||
|
|
|
Net
Worth (S/Holders' Equity) |
2,507,773 |
2,307,831 |
|
|
|
|
Current
Ratio (%) |
133.76 |
131.35 |
|
|
|
|
Net
Worth Ratio (%) |
25.02 |
23.70 |
|
|
|
|
Recurring
Profit Ratio (%) |
2.90 |
2.94 |
|
|
|
|
Net
Profit Ratio (%) |
0.39 |
0.57 |
|
|
|
|
Return
On Equity (%) |
1.49 |
2.23 |
|
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)