MIRA
INFORM REPORT
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Report Date : |
01.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
HITACHI LTD |
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Registered Office : |
1-6-6 Marunouchi Chiyodaku Tokyo 100-8280 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
February 1920 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Electrical Machinery |
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 150,770.5 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
name & address
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
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 11,226,735 M
PAYMENTS REGULAR CAPITAL Yen 282,033 M
TREND STEADY WORTH Yen 2,170,612 M
STARTED 1920 EMPLOYES 347,810
COMMENT
MFR OF
COMPREHENSIVE ELECTRICAL MACHINERY.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 150,770.5 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated) figures for 31/03/2009 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. Stepping up sales to third-party customers
at Hitachi Plasma Display.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 11,226,735 million, a 9.6%
up from Yen 10,247,903 million in the previous term. This is attributed to higher sales of electronics materials,
heavy industrial machinery and consumer electric goods. By divisions, information &
communications up 12% to Yen 2,761,100 million as PC software & hardware
sales grew; electronics devices remained flat; power & industrial systems
up 18% to Yen 3,568,100 million, thanks to robust demand for nuclear power
generation, particularly coal power generation construction overseas, and construction
machinery, railway construction in overseas countries. The recurring profit was posted at Yen
324,762 million and the net loss at Yen 58,125 million, respectively, compared
with Yen 202,338 million recurring profit and Yen 32,799 million net profit,
respectively, a year ago. The losses
are referred to valuation losses on deferred tax assets.
(Apr/Sept/2008 results): Sales
Yen 5,310,547 million (up 0.6%), operating profit Yen 197,082 million (up 62%),
recurring profit Yen 138,143 million (up 1.5%), net profit Yen 64,279 million
(up 78.9%). (% compared with the
corresponding period a year ago).
Revenues were essentially unchanged from last year, reflecting mainly
higher revenues in Information & communication systems and power &
industrial systems segments, but lower revenues in Digital Media, and other
segments. Growth in Asia, including
China, offset lower revenues in North America.
For the current term ending Mar
2009 the recurring profit is projected at Yen 310,000 million and the net
profit at Yen 15,000 million, respectively, on a 2.9% fall in turnover, to Yen
10,900,000 million. The firm revised
the forecasts to above from: sales Yen 11,100,000 million, recurring profit Yen
330,000 million and net profit Yen 150,000 million, saying that economic
outlook remains unpredictable against a backdrop of concerns about a further
slowdown of economic growth in the world, stubbornly high raw material prices,
the Yen’s run-up and falling share prices.
Free of valuation losses on deferred tax asset and net account be back
to profit. Targeting profit emergence
at overall panel TV business in next term.
The consolidation of hard-drive mfg facilities will contribute
significantly to its earnings.
The
financial situation is considered FAIR and good for ORDIANARY business
engagements. Max credit limit is
estimated at Yen 150,770.5 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 (9.1), State Street Bank & Trust (7.7),
Master Trust Bank of Japan T (6.1),
Japan Trustee Services Bank (3.9), Nippon Life Ins (2.9), Employees’ S/Holding
Assn (2.8), Dai-ichi Life Ins (2.2),
Trust & Custody Services Bank (2.1), State Street Bank & Trust (1.5),
Meiji Yasuda Life Ins (1.4); foreign owners (42.1)
No. of
shareholders: 274,978
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; Kazuhiro Mori, v pres; Kunihiko Ohnuma, v
pres; Junzo Kawakami, v pres; Manabu Shinomoto, v pres; Masahiro Hayashi, v
pres; Naoya Takahashi, s/mgn dir; Taiji Hasegawa, mgn dir; Minoru Tsukada, mgn
dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Hitachi
Chemical Co, Hitachi Cable, Hitachi Metals, other
OPERATION
Activities:
Manufactures comprehensive electrical machinery:
(Sales breakdown by divisions):
Information & Communications (22%); Electronics (10%); Power &
Industrial Systems (28%); Consumer Electric Appliances (12%), Functional
Materials (15%); Distribution & Others (10%); Financing (3%).
(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: (In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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11,226,735 |
10,247,903 |
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Cost of Sales |
8,777,657 |
8,088,371 |
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GROSS PROFIT |
2,449,078 |
2,159,532 |
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Selling & Adm Costs |
2,103,562 |
1,977,020 |
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OPERATING PROFIT |
345,516 |
182,512 |
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Non-Operating P/L |
-20,734 |
19,826 |
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RECURRING PROFIT |
324,782 |
202,338 |
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NET LOSS |
58,125 |
32,799 |
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BALANCE SHEET |
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Cash |
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560,960 |
617,866 |
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Receivables |
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2,365,823 |
2,341,609 |
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Inventory |
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1,441,024 |
1,450,258 |
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Securities, Marketable |
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Other Current Assets |
1,033,948 |
1,024,402 |
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TOTAL CURRENT ASSETS |
5,401,755 |
5,434,135 |
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Property & Equipment |
2,653,918 |
2,687,977 |
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Intangibles |
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Investments, Other Fixed Assets |
2,475,174 |
2,522,147 |
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TOTAL ASSETS |
10,530,847 |
10,644,259 |
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Payables |
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1,601,413 |
1,584,959 |
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Short-Term Bank Loans |
723,020 |
894,393 |
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Other Current Liabs |
2,428,466 |
2,188,192 |
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TOTAL CURRENT LIABS |
4,752,899 |
4,667,544 |
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Debentures |
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Long-Term Bank Loans |
1,421,607 |
1,489,843 |
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Reserve for Retirement Allw |
822,440 |
818,457 |
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Other Debts |
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220,781 |
151,869 |
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TOTAL LIABILITIES |
7,217,727 |
7,127,713 |
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MINORITY INTERESTS |
1,142,508 |
1,073,749 |
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Common
stock |
282,033 |
282,033 |
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Additional
paid-in capital |
555,410 |
560,796 |
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Retained
earnings |
1,626,497 |
1,713,757 |
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Evaluation
p/l on investments/securities |
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Others |
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(267,198) |
(88,450) |
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Treasury
stock, at cost |
(26,130) |
(25,339) |
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TOTAL S/HOLDERS` EQUITY |
2,170,612 |
2,442,797 |
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TOTAL EQUITIES |
10,530,847 |
10,644,259 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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791,837 |
615,042 |
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Cash
Flows from Investment Activities |
-637,618 |
-786,170 |
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Cash
Flows from Financing Activities |
-185,556 |
121,259 |
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Cash,
Bank Deposits at the Term End |
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560,960 |
617,866 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
2,170,612 |
2,442,797 |
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Current
Ratio (%) |
113.65 |
116.42 |
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Net
Worth Ratio (%) |
20.61 |
22.95 |
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Recurring
Profit Ratio (%) |
2.89 |
1.97 |
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Net
Profit Ratio (%) |
0.52 |
0.32 |
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Return
On Equity (%) |
2.68 |
1.34 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.25 |
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UK Pound |
1 |
Rs.80.36 |
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Euro |
1 |
Rs.62.84 |
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%)