MIRA
INFORM REPORT
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Report Date : |
07.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
IHI CORP |
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Formerly Known As : |
ISHIKAWAJIMA HARIMA JUKOGYO KK |
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Registered Office : |
Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-8710 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
January 1889 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Engineering works of Aerospace, Ships/Marine Structure, Industrial
Machinery, Energy-Related Fields |
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 14,532.1 MILLION |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
IHI CORP (NAME CHANGED IN SEPt/07)
REGD NAME: I. H. I. KK (from the
former: Ishikawajima Harima Jukogyo KK)
MAIN OFFICE: Toyosu IHI Bldg,
3-1-1 Toyosu Kotoku Tokyo 135-8710 JAPAN
Tel:
03-6204-7800 Fax: 03-6204-8800
E-Mail address: webmaster@IHI.co.jp
ACTIVITIES
Engineering works of aerospace, ships/marine structure, industrial
machinery, energy-related fields
BRANCHES
Tokyo (3), Yokohama, Chita, Nagasaki, Aioi, Kure, Soma
OVERSEAS
Paris, Piraeus, Bangkok, Beijing, Shanghai, Taipei, Kaohsiung, Hanoi, Jakarta, Manila, Seoul, New Delhi, Algiers (--branch offices)
(Subsidiaries/JV’s): Europe (9), Americas (11), Oceania (1),
Asia (24, including 9 in China)
FACTORY(IES)
Aioi, Kure, Soma, Yokohama, Mizuho, Chita, other (Tot 13)
CHIEF EXEC
KAZUAKI KAMA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,234,851 M
PAYMENTS REGULAR CAPITAL Yen 95,762 M
TREND STEADY WORTH Yen 247,465 M
STARTED 1889 EMPLOYES 23,190
COMMENT
HEAVY ELECTRIC
MACHINERY MFR.
FINANCIAL SITUATION
CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 14,532.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
This is a major comprehensive heavy electric machinery mfr expanding operations in aerospace, ships/marine structures, industrial machinery/energy related fields, other. Bought aerospace business from the then ailing Nissan Motor in 2000. Highly competitive in aerospace and defense areas. Largest mfr of aircraft jet engines for civil aircraft. Has business alliance in shipbuilding with Mitsui Engineering & Shipbuilding and Kawasaki Heavy Industries. Strong in large bridge projects including the Akashi Kaikyo Bridge, linking Honshu Island and Shikoku Island. Actively expanding into environmental sector such as garbage processing. Has business tie-up with Ebara Corp, pump/air blower mfr, Tokyo, for garbage incineration and pumps. Also has business alliance with Mitsui Engineering and Shipbuilding and Kawasaki Heavy Industries. The firm is in the process of withdrawing from unprofitable operations to focus on growth areas such as aircraft engines, energy-related fields such as LNG, auto turbochargers on a global basis. Pulled out of overseas cement project. Resuming operation of Chita dock for possible construction of oil-producing equipment.
(Recent news): The firm announced the acquisition of shares of Hauzer Techno Coating BV (Germany), and made it a subsidiary. IHI aims to expand IHI’s industrial furnaces related business (vacuum heat treating furnaces, new material furnaces & gas carburizing furnaces), one of the businesses IHI is strengthening. (Announcement was made on 23/Feb/2008 by the firm).
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term
amounted to Yen 1,234,81 million, a 9.6% up from Yen 1,127,075 million in the
previous term. Boilers, nuclear
power-related and jet engines received larger orders. By divisions, Energy and Plants up 13% to Yen 349,700 million, as
coal burning boilers increased in USA & Europe in the wake of skyrocketing
petroleum prices; Aerospace up 4% to Yen 257,300 million, due to increased
demand for aircrafts & engines; Shipbuilding & Offshore up 14% to Yen
132,600 million, thanks to deliveries of 2 tankers, 4 container ships, 8 bulk
carriers and one coastal ships (total 15 vessels), although new orders received
decreased; Distribution System & Steel Structures up 10% to Yen 174,200
million; Machinery up 8% to Yen 175,900 million. As a result, the recurring profit was posted at Yen 21,511
million and the net profit at Yen 15,825 million, respectively, compared with
Yen 15,908 million recurring profit and Yen 5,283 million net profit, respectively,
a year ago.
(Apr/Sept/2007 results): Sales Yen 858,836
million (up 11.5%), operating loss Yen 47,563 million, recurring loss Yen
55,064 million, net profit Yen 11,223 million (up from losses). (% compared with the corresponding period a
year ago). Two segments – Energy &
Plants and Shipbuilding & Offshore operations – achieved turnarounds. Operating losses came from mounting costs at
its energy-related plant engineering business.
The net profits stemmed from extraordinary income of Yen 79,650 million
from land & assets sales, to compensate actual losses.
For the current term ending Mar 2008 the
recurring loss is projected at Yen 25,000 million and the net profit at Yen 26,000
million, respectively, compared with Yen 21,511 million recurring profit and
Yen 15,825 million net profit, respectively, a year ago. New orders reaching Yen 13,000 million, down
4% from preceding term, affected by restraint in shipbuilding. Steel-making machinery & superchargers
remain extremely good. Special profits
(Yen 31,200 million) on sale of share in Toyosu redevelopment project
gone. Pulled out of overseas cement
projects.
The financial situation is considered
maintained FAIR and good for ORDINARY business engagements. Max cedit limit is estimated at Yen 14,532.1
million, on 30 days normal terms.
REGISTRATION
Date Registered: Jan 1889
Legal Status: Limited Company
(Kabushiki Kaisha)
Authorized: 3,300 million
shares
Issued: 1,467,058,482
shares
Sum: Yen 95,762
million
Major shareholders (%)
Master Trust Bank
of Japan T (5.4), Japan Trustee Services Bank T (5.2), JTSB (Toshiba Corp)
(3.7), Dai-Ichi Life Ins (3.6), TCSB (Mizuho Bank) (2.9), Nip-pon Life Ins
(2.3), Mitsui Sumitomo Ins (1.5), Sumitomo Life Ins (1.4), Mizuho Corporate
Bank (1.4), Company’s Kyoeikai Assn (1.4); foreign owners (12.9)
No. of shareholders: 121,689
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya
Managements
Mototsugu Ito, ch;
Kazuaki Kama, pres & CEO; Teiichi Tamaki, v pres; Yukiya Nakagawa, v pres;
Toshiro Takei, v pres; Yasuhiro Inagawa, mgn dir; Yasuyuki Watanabe, mgn dir;
Jun’ichi Sato, mgn dir; Yuji Hiruma, mgn dir; Yoshiaki Shimoji, mgn dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies
IHI Aerospace, IHI Marine United, other
OPERATION
Activities: Heavy machinery engineering works:
(Sales Breakdown by
Divisions):
Distribution Systems & Steel Structures (14%): material handling systems, physical dis-tribution & factory automation systems, parking systems, bridges, construction materials;
Industrial Machinery (13%): iron & steel mfg equipment, vehicular turbochargers, mass-produced machinery, others
Energy & Plant Operations (28%); boilers, gas turbines, components for nuclear power plants, environmental control systems, storage facilities, others;
Aero-Engine & Space Operations (23%): jet engines, space-related equipment, others;
Shipbuilding & Offshore Operations (10%): shipbuilding, ship repairs, offshore struc- tures;
Other Operations (12%): diesel engines, agricultural machinery, construction machinery, financing & service industry, marine transport, others
Overseas sales ratio (38.8%): Asia 12.2%; N America 11.4%; Latin America 4.9%; Europe 5.0%; others 5.2%.
Clients
[Government agencies, electric powers, mfrs] Defense Agency, Toshiba
Corp,
Tokyo Electric Power, Sumitomo Metal Ind, Japan Nuclear fuel, other.
No. of accounts
3,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers]: Ishikawajima Plant Construction, Ishikawajima Transport Machinery, JAS Aircraft, Ishikawajima Mass-Produced Machinery, Mitsui Bussan
Aerospace, 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)
SMBC (H/O)
Relations: Satisfactory
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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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1,234,851 |
1,127,075 |
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Cost of Sales |
1,082,004 |
986,666 |
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GROSS PROFIT |
152,847 |
140,409 |
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Selling & Adm Costs |
128,230 |
118,638 |
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OPERATING PROFIT |
24,617 |
21,771 |
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Non-Operating P/L |
-3,106 |
-5,863 |
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RECURRING PROFIT |
21,511 |
15,908 |
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NET PROFIT |
15,825 |
5,283 |
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BALANCE SHEET |
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Cash |
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85,462 |
105,243 |
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Receivables |
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366,568 |
356,469 |
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Inventory |
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437,998 |
409,020 |
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Securities, Marketable |
28,094 |
20,995 |
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Other Current Assets |
133,168 |
114,247 |
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TOTAL CURRENT ASSETS |
1,051,290 |
1,005,974 |
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Property & Equipment |
257,838 |
226,071 |
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Intangibles |
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21,369 |
21,340 |
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Investments, Other Fixed Assets |
204,944 |
208,411 |
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TOTAL ASSETS |
1,535,441 |
1,461,796 |
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Payables |
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318,686 |
295,026 |
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Short-Term Bank Loans |
175,951 |
142,526 |
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Other Current Liabs |
377,584 |
336,485 |
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TOTAL CURRENT LIABS |
872,221 |
774,037 |
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Debentures |
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83,000 |
103,000 |
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Long-Term Bank Loans |
122,296 |
178,782 |
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Reserve for Retirement Allw |
144,234 |
150,336 |
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Other Debts |
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66,225 |
66,244 |
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TOTAL LIABILITIES |
1,287,976 |
1,272,399 |
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MINORITY INTERESTS |
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20,160 |
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Common
stock |
95,762 |
64,925 |
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Additional
paid-in capital |
43,034 |
10,200 |
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Retained
earnings |
55,542 |
44,814 |
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Evaluation
p/l on investments/securities |
35,654 |
46,220 |
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Others |
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17,547 |
3,126 |
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Treasury
stock, at cost |
(74) |
(48) |
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TOTAL S/HOLDERS` EQUITY |
247,465 |
169,237 |
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TOTAL EQUITIES |
1,535,441 |
1,461,796 |
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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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36,086 |
3,498 |
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Cash
Flows from Investment Activities |
-57,374 |
3,386 |
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Cash Flows
from Financing Activities |
13,030 |
-12,743 |
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Cash,
Bank Deposits at the Term End |
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129,939 |
137,382 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
247,465 |
169,237 |
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Current
Ratio (%) |
120.53 |
129.96 |
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Net
Worth Ratio (%) |
16.12 |
11.58 |
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Recurring
Profit Ratio (%) |
1.74 |
1.41 |
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Net
Profit Ratio (%) |
1.28 |
0.47 |
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Return
On Equity (%) |
6.39 |
3.12 |
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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%)