MIRA
INFORM REPORT
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Report Date : |
16.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
MITSUBISHI CORPORATION |
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Registered Office : |
2-3-1 Marunouchi Chiyodaku Tokyo 100-8086 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Apr 1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Import, export, wholesale of energy,
metals, machinery, chemicals, other |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 414677.2 millions |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
name
MITSUBISHI CORPORATION
REGD NAME
Mitsubishi Shoji KK
MAIN OFFICE
2-3-1 Marunouchi Chiyodaku Tokyo 100-8086 JAPAN
Tel : 03-3210-2121
Fax : 03-3210-8051
URL : http://www.mitsubishicorp.com/
E-Mail address: Not
specified (thru the URL)
ACTIVITIES
Import, export, wholesale of energy, metals, machinery, chemicals,
other
BRANCHES
Domestic (43)
OVERSEAS
Branches & subsidiaries (120)
Subsidiaries/Affiliates (80) (39 main offices & 41
branches)
CHIEF EXEC
YORIHIKO KOJIMA, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 20,516,264 M
PAYMENTS REGULAR CAPITAL Yen 199,228 M
TREND STEADY WORTH Yen 2,950,931 M
STARTED 1950 EMPLOYES 55,867
COMMENT
LARGEST GENERAL TRADING HOUSE OF JAPAN. FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 414,677.2 MILLION, 30 DAYS NORMAL
TERMS
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
This is the largest general trading house of Japan and one of the core Mitsubishi group firms. Handles about 25,000 products from raw materials to finished items. Strong in energies field, particularly topping in LNG business. Has many subsidiaries in food-related area. Moving into satellite communications thru JV. Energy resources division faring well. Automobile business keeps expanding, thanks to robust demand worldwide. Emphasis being directed to new-functional business areas. Actively cultivating Asian markets such as importing LNG from China and investing in projects in Singapore. Listed on London and Paris stock exchanges.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 20,516,264 million, a 7.6% up from Yen 19,067,153 million in the previous term. The record high earnings were largely thanks to booming international commodities prices. Chief contributor was the Metal group, where net income leaped 38% to Yen 186,800 million. The strong performance was driven by continued strength in its coking coal operations and soaring prices for metal resources, such as copper and aluminum. Energy business also made another significant contribution, posting high net income of Yen 74,000 million on par with fiscal 2006. Foods were strong, too. Automobiles rose on robust demand overseas. The recurring profit was posted at Yen 595,542 million and the net profit at Yen 415,895 million, respectively, compared with Yen 478,383 million recurring profit and Yen 350,045 million net profit, respectively, a year ago.
(Apr/Sept/2007 results): Sales Yen 11,072,612 million (up
12.6%), operating profit Yen 190,091 million (down 6.9%), recurring profit Yen
285,316 million (down 9.5%), net profit Yen 237,725 million (up 1.3%). (% compared with the same period a year
ago). The improved profits owe much to
strong performance of its energy, machinery and chemical divisions. Profits at its energy division jumped 52% to
Yen 40,600 million as higher energy prices boosted trading income from the
division’s overseas units, according to the firm. Profits at its industrial finance, logistics & development
division, however, fell 80% to Yen 4,700 million on special losses related to
he sale of real estate developer Diamond City.
For the current term ending Mar/2008 the recurring profit is
projected at Yen 545,000 million and the net profit at Yen 430,000 million,
respectively, on a 7.2% rise in turnover, to Yen 22,000,000 million. Profits in crude oil division will rise due
to the continuing hike in oil prices.
Chemicals will continue growing.
Foods and others will stay high.
Resources in Australia, top profit-earner, may slip back due to lowering
coal prices. Acquired oil & gas
field interests in Gulf of Mexico. Launched leasing business in Saudi
Arabia. Putting stress on medical &
environment-related areas.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 414,677.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr
1950
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 2,500
million shares
Issued: 1,689,902,896
shares
Sum: Yen
199,228 million
Major shareholders (%): Master Trust Bank of Japan, T (7.1), Tokio Marine & Nichido Fire Ins (5.5), Japan
Trustee Services Bank, T (4.6), Meiji Yasuda Life Ins (4.2), Mitsubishi Heavy Ind (2.8),
Mitsubishi UFJ Securities (2.6), MUFG (2.5), State Street Bank & Trust (2.0), State Street
Bank & Trust 505103 (1.4), Nomura T (MUTB) (1.3), foreign owners (32.2)
No. of shareholders: 182,786
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya,
London
Managements: Mikio Sasaki, ch; Yorihiko Kojima, pres & CEO; Yukio Ueno, v pres; Takeshi Inoue,
s/mgn
dir; Ichiro Mizuno, s/mgn dir; Hisanori Yoshimura, s/mgn dir; Yoshikuni
Kanai, mgn
dir;
Hajime Katsumura, mgn dir; Masatoshi Nishizawa, mgn dir; Tsunao Kijima, mgn dir;
Mutsumi
Kotsuka, mgn dir; Ryoichi Ueda, mgn dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Ryoshoku Ltd, Mitsubishi Corp USA, Mitsubishi Corporation
Financial Management Services, Mitsubishi Development, etc. (Tot 577 consolidated subsidiaries)
OPERATION
Activities: Imports, exports and wholesales wide varieties of
commodities from raw materials to consumer goods:
(Sales breakdown by divisions):
Energy Div (21%): crude oil, petroleum products, LNG,
LPG, carbon, other;
Metals Div (26%): ferrous & nonferrous raw
materials, MDP units, steel products, other;
Machinery Div (17%): power & electrical systems, plant projects, aerospace, industrial machinery, motor vehicles, other;
Chemical Div (11%): raw materials for synthetic resins & fibers, chemical fertilizers, inorganic raw materials, industrial salts, plastics, electronics materials, life science products, other;
Living Essentials Div (24%): foods, textiles, housing
general merchandise, other;
New Business Initiative Div (1%): information & telecommunication technologies, financial services, logistics services, human life business, business investments, marketing technologies to create & foster new businesses.
Overseas sales ratio (21%).
Clients: [Power companies, mfrs, wholesalers] Nippon Oil Corp, Ryoshoku Ltd, Tokyo Gas, Tokyo Electric Power, Kansai Electric Power, other.
No. of accounts: 3,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, oil refiners, wholesalers] Mitsubishi Heavy
Ind, Saudi Arabian Oil Co, Brunei LNG SB, Malaysia LNG, JGC Corp, other.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
MUFG (H/O)
Mizuho Corporate Bank (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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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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20,516,264 |
19,067,153 |
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Cost of Sales |
19,368,163 |
18,015,672 |
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GROSS PROFIT |
1,148,101 |
1,051,481 |
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Selling & Adm Costs |
735,971 |
701,641 |
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OPERATING PROFIT |
412,130 |
349,840 |
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Non-Operating P/L |
183,412 |
128,543 |
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RECURRING PROFIT |
595,542 |
478,383 |
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NET PROFIT |
415,895 |
350,045 |
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BALANCE SHEET |
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Cash |
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754,776 |
646,317 |
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Receivables |
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3,626,885 |
3,298,879 |
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Inventory |
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913,383 |
840,874 |
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Securities, Marketable |
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Other Current Assets |
576,775 |
597,450 |
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TOTAL CURRENT ASSETS |
5,871,819 |
5,383,520 |
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Property & Equipment |
1,380,203 |
1,327,272 |
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Intangibles |
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66,083 |
67,460 |
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Investments, Other Fixed Assets |
4,167,559 |
3,632,989 |
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TOTAL ASSETS |
11,485,664 |
10,411,241 |
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Payables |
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2,840,549 |
2,561,402 |
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Short-Term Bank Loans |
612,573 |
626,155 |
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Other Current Liabs |
1,063,593 |
953,863 |
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TOTAL CURRENT LIABS |
4,516,715 |
4,141,420 |
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Debentures |
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Long-Term Bank Loans |
2,865,008 |
2,877,149 |
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Reserve for Retirement Allw |
46,599 |
40,121 |
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Other Debts |
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789,340 |
705,595 |
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TOTAL LIABILITIES |
8,217,662 |
7,764,285 |
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MINORITY INTERESTS |
317,071 |
267,692 |
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Common
stock |
199,228 |
197,818 |
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Additional
paid-in capital |
254,376 |
251,598 |
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Retained
earnings |
1,870,990 |
1,487,707 |
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Evaluation
p/l on investments/securities |
627,523 |
544,328 |
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Others |
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200 |
(101,070) |
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Treasury
stock, at cost |
(1,386) |
(1,117) |
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TOTAL S/HOLDERS` EQUITY |
2,950,931 |
2,379,264 |
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TOTAL EQUITIES |
11,485,664 |
10,411,241 |
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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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460,779 |
336,316 |
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Cash
Flows from Investment Activities |
-281,640 |
-94,471 |
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Cash
Flows from Financing Activities |
-139,242 |
-187,918 |
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Cash,
Bank Deposits at the Term End |
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754,776 |
646,317 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
2,950,931 |
2,379,264 |
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Current
Ratio (%) |
130.00 |
129.99 |
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Net
Worth Ratio (%) |
25.69 |
22.85 |
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Recurring
Profit Ratio (%) |
2.90 |
2.51 |
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Net
Profit Ratio (%) |
2.03 |
1.84 |
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Return
On Equity (%) |
14.09 |
14.71 |
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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. |
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%)