MIRA
INFORM REPORT
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Report Date : |
06.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUMITOMO ELECTRIC INDUSTRIES LTD |
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Registered Office : |
4-5-33 Kitahama Chuoku Osaka 541-0041 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
August 1911 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Electric Wires and Cables |
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 81,696.6 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
name & address
SUMITOMO ELECTRIC INDUSTRIES LTD
REGD NAME: Sumitomo Denki Kogyo
KK
MAIN OFFICE: 4-5-33 Kitahama
Chuoku Osaka 541-0041 JAPAN
Tel:
06-6220-4141 Fax: 06-6222-3380
TOKYO HEAD OFFICE: 1-3-12 Motoakasaka Minatoku Tokyo 107-8468, as given
Tel:
03-3423-5111 Fax: 03-3423-5099
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of electric wires & cables
BRANCH(ES)
Tokyo, Osaka, Nagoya, Fukuoka, Hiroshima, Sendai, Sapporo, Okinawa,
Toyota, Kanazawa,
Takamatsu
OVERSEAS
USA, Europe, Asia, other (Tot 300 over 30 countries, including
subsidiaries)
FACTORY(IES)
Osaka, Itami, Yokohama
CHIEF EXEC
MASAYOSHI MATSUMOTO, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 2,384,395 M
PAYMENTS REGULAR CAPITAL Yen 96,784 M
TREND STEADY WORTH Yen 1,052,989 M
STARTED 1911 EMPLOYES 133,853
COMMENT
MFR OF ELECTRIC
WIRES & CABLES.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 81,696.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company was established on the basis of electric wire business spun off from Sumitomo family’s rolled copper business.Core company of Sumitomo Group. World’s No.3 maker of wire harnesses for automobiles, and 4th ranked player in telecom infrastructure products including optical fiber. Developing businesses expressed by three keywords of infrastructure (basic to society), mobility (facilitating information & product movement), and interface (linking differing items). Special Metals turned into 100%-owned sub in Aug 2007 to strengthen automobile-related fields. Planning to transfer automobile-relate brakes business to Aishin Seiki. Enhancing overseas plants, including Vietnam plant.
FINANCIAL INFORMATION
The sales volume
for Mar/2007 fiscal term amounted to Yen 2,384,395 million, an 18.8% up from
Yen 2,007,134 million in the previous term.
By divisions, Automotive up 22.4% to Yen 1,095,852 million, thanks to
increased sales of wiring harnesses driven by robust car production
domestically & overseas, as well as rising copper prices. Newly acquired German wiring harness maker
Volkswagen Bordnetz GmbH contributed.
Information & Communications down 1.1% to Yen 333,063 million, due
to decrease in demand for gigabit Ethernet-passive optical network, ADSL &
other broadband access equipment.
Electronics up 21.4% to Yen 223,002 million, on increased demand for
ultra-thin coaxial cables & gallium nitride substrates for blue-violet
laser diodes, as well as increased sales of flexible printed circuits to
mobile-phone mfrs. Electric Cable/Wire
up34.3% to Yen 501,802 million, reflecting increased orders for electrical
engineering projects. Industrial
Materials up 11.5% to Yen 295,458 million, on increased sales of powder metal
components & synthetic diamond products, mainly for cutting tools; steel
cords for automobile tires, semiconductor heat spreaders & sintered parts
also rose. The recurring profit was
posted at Yen 245,368 million and the net profit at Yen 76,029 million,
respectively, compared with Yen 113,194 million recurring profit and Yen 58,346
million net profit, respectively, a year ago.
(Apr/Dec/2007 results): Sales Yen 1,846,445 million (up 10.2%), operating profit Yen 98,675 million (up 29.9%), recurring profit Yen 114,487 million (35.3%), net profit Yen 67,352 million (up 45.3%). (% compared with the corresponding period a year ago). Wire harnesses continued to contribute to sales growth.
For the current term ending Mar 2008 the recurring profit is projected at Yen 150,000 million and the net profit at Yen 85,000 million, on a 2.8% rise in turnover, to Yen 2,450,000 million. Wire harnesses will continue contributing to sales growth. Telecom-use products shrinking, affected by sale of con sub Netmarks. Electronics & industrial materials continuing growth. Operating profit shrinking, affected by increased depreciation on system reform.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 81,696.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Aug 1911
Legal Status: Limited Company
(Kabushiki Kaisha)
Authorized: 3,000 million
shares
Issued: 759,293,049
shares
Sum: Yen 96,784
million
Major shareholders (%)
Japan Trustee Services T (9.1), Master Trust Bank of Japan T (8.5), Nippon Life Ins (5.2), Japan Trustee Services T4 (2.9), Sumitomo Life Ins (1.9), Sumitomo Trust, Shintaku Acct B (1.9), SMBC (1.5), State Street Bank & Trust 505103 (1.2), Dai-ichi Life Ins (1.1), JTSB (Sumitomo Life Ins) (1.0); foreign owners (30.8.
No. of shareholders: 61,975
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya
Managements
Norio Okayama, ch; Masayoshi Matsumoto, pres; Toshihide Kimura, s/mgn dir; Yoshio Ebihara, s/mgn dir; Yoshiaki Nishimura, s/mgn dir; Hiroyuki Takenaka, s/mgn dir; Yuichiro Kohno, mgn dir; Akira Nishimura, mgn dir; Atsushi Yano, mgn dir; Yuji Hamasaki, mgn dir; Shigeru Tanaka, mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
Sumitomo Wiring Systems, Sumitomo Densetsu, Tokai Carbon Co, other (Tot
300 domestic/overseas over 30 countries)
OPERATION
Activities: Manufactures electric wires & cables:
(Sales Breakdown by Divisions):
Automotive Div (46%): wiring harness, connector, wheel speed sensor, center cluster integration panel, front side monitoring cameras;
Information/Communications Div (14%): optical fiber cable, pure band, fusion splicer for FTTH applications, optical connector, optical data link, two-way communication device, access network system product (MegaBit Gear), Traffic control system, CATV system, river/road information system, power line communications, laser handy terminals;
Electronics Div (9%): printed circuit, flat component, compound semiconductor, gallium nitride substrate, irradiated products, electric wire for electronic equipment & automobiles (ECO-WIRE), ultrafine copper wire & twisted wire, contact probe, porous metal (for batteries), polymide tube, fluororesin-coated products, others;
Electric Wire & Cables Div (20%): ecology cable, highly-fire resistant non-halogen cables for fire fighting, high-voltage power cable, high-temperature superconducting cable, submarine power cable, trolley wire for high-speed railway, insulated wire for ultrasonic bonding, ultra-fine magnet wire, fiber-optic distributed temperature sensing system, infrared optical products, air spring, multibeam lens antenna;
Industrial Materials Div (12%): cemented carbide insert, synthetic diamond, end mill & drill, microdrill, power metallurgical parts, composite materials for substrates & heat sinks (CMSH), bonding tool, steel wire for springs, epoxy-coated steel wire for prestressed concrete, steel cord;
Overseas Sales Ratios (37.8%): N America 19.2%, Asia 14.6%, others 10.0%
Clients
[Automakers, telecommunications carriers ] Toyota Motors, NTT Corp, Kansai Electric Power, Tokyo Electric Power, Sumitomo Corp, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
Mfrs, wholesalers] Sumitomo Corp, Metal One, Mitsui & Co, Sumitomo Metal Ind, Sumitomo Chemical, other.
Payment record
Regular
Location
Business area in Osaka. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Osaka)
Sumitomo Trust Bank (H/O)
Relations: Satisfactory
Financials
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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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2,384,395 |
2,007,134 |
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Cost of Sales |
1,979,737 |
1,645,805 |
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GROSS PROFIT |
404,658 |
361,329 |
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Selling & Adm Costs |
275,913 |
255,834 |
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OPERATING PROFIT |
128,745 |
105,495 |
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Non-Operating P/L |
116,623 |
7,699 |
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RECURRING PROFIT |
245,368 |
113,194 |
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NET PROFIT |
76,029 |
58,346 |
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BALANCE SHEET |
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Cash |
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130,541 |
144,634 |
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Receivables |
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547,295 |
475,789 |
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Inventory |
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271,234 |
233,345 |
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Securities, Marketable |
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Other Current Assets |
83,629 |
89,400 |
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TOTAL CURRENT ASSETS |
1,032,699 |
943,168 |
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Property & Equipment |
542,053 |
516,413 |
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Intangibles |
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32,012 |
31,418 |
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Investments, Other Fixed Assets |
519,641 |
500,049 |
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TOTAL ASSETS |
2,126,405 |
1,991,048 |
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Payables |
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310,747 |
281,824 |
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Short-Term Bank Loans |
152,351 |
102,307 |
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Other Current Liabs |
182,810 |
219,766 |
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TOTAL CURRENT LIABS |
645,908 |
603,897 |
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Debentures |
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217,617 |
232,710 |
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Long-Term Bank Loans |
71,432 |
57,791 |
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Reserve for Retirement Allw |
23,381 |
31,492 |
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Other Debts |
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115,078 |
95,766 |
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TOTAL LIABILITIES |
1,073,416 |
1,021,656 |
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MINORITY INTERESTS |
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158,271 |
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Common
stock |
96,784 |
96,774 |
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Additional
paid-in capital |
117,491 |
117,474 |
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Retained
earnings |
543,451 |
480,281 |
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Evaluation
p/l on investments/securities |
117,178 |
116,926 |
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Others |
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178,676 |
277 |
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Treasury
stock, at cost |
(591) |
(611) |
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TOTAL S/HOLDERS` EQUITY |
1,052,989 |
811,121 |
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TOTAL EQUITIES |
2,126,405 |
1,991,048 |
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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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130,997 |
124,973 |
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Cash
Flows from Investment Activities |
-131,193 |
-155,340 |
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Cash
Flows from Financing Activities |
-16,549 |
21,102 |
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Cash,
Bank Deposits at the Term End |
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130,521 |
144,614 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
1,052,989 |
811,121 |
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Current
Ratio (%) |
159.88 |
156.18 |
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Net Worth
Ratio (%) |
49.52 |
40.74 |
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Recurring
Profit Ratio (%) |
10.29 |
5.64 |
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Net
Profit Ratio (%) |
3.19 |
2.91 |
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Return
On Equity (%) |
7.22 |
7.19 |
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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%)