MIRA
INFORM REPORT
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Report Date : |
07.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
MITSUI MINING & SMELTING CO LTD |
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Registered Office : |
1-11-1 Osaki Shinagawaku Tokyo 141-8584 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
May 1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Nonferrous Metals (Electronic Materials) |
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 17,444.3 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
MITSUI MINING
& SMELTING CO LTD
REGD NAME: Mitsui Kinzoku Kogyo KK
MAIN OFFICE: 1-11-1 Osaki Shinagawaku Tokyo 141-8584 JAPAN
Tel:
03-5437-8000 Fax: 03-5437-8033
URL: http://www.mitsui-kinzoku.co.jp/
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of nonferrous metals (electronic materials)
BRANCHES
Chiba, Tokyo, Yamaguchi, Saitama, Okayama, Fukuoka, other
(Tot12)
OVERSEAS
China (5), Taiwan (3), USA (3), South America (2), Malaysia,
India, Korea, Europe, other (Tot 19)
FACTORY(IES)
Okayama, Aomori, Hiroshima (--smelting works)
Saitama, Fukuoka, Yamanashi, Fukuoka, Shiga, Gifu
(--factories)
CHIEF EXEC
YOSHIHIKO TAKEBAYASHI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 595,463 M
PAYMENTS REGULAR CAPITAL Yen 42,129 M
TREND STEADY WORTH Yen 199,545 M
STARTED 1950 EMPLOYES 11,369
COMMENT
MFR OF
NONFERROUS METALS.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 17,444.3 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was
established on the basis of a metal division separated from Mitsui Mining Co
Ltd, natural resources company, Tokyo, named as Kamioka Kogyo, in 1950. This is a leading nonferrous metal mfr with
electronics materials, such as copper foils and tape automated bonding (TAB)
products, as mainline. In 1960s,
expanded into metal processed products.
Shifted zinc & copper smelting to subsidiaries. Active in overseas operations with 19 subs
& offices located worldwide.
(Recent
news excerpt from The Nikkei Daily):
Dated 29/Aug/2008: Mitsui will build copper foil plant in
Malaysia (suburb of Kuala Lumpur), scheduling to start operations in Apr
2010. The plant will produce
electrolytic copper foil (of thin, high-function materials) used in cellular
phones & personal computers. The
firm will spend about Yen 15 billion. Output
capacity is expected to be 1,200 tons a month by Apr 2011. The global market for electrolytic copper
foil is growing at a pace of about 7]% a year, with Mitsui holding the largest
share of the market, or slightly more than 20%.
Dated 25/Sept/2008: Mitsui decided to resume
production of copper ore at its Huanzala zinc mine in Peru. Starting from the end of Sept, Mitsui will
produce around 80 tons of copper a month, at first selling the copper ore
locally.
FINANCIAL INFORMATION
The sales volume for Mar/2008
fiscal term amounted to Yen 595,463 million, a 0.7% up from Yen 591,518 million
in the previous term. Prices of
electronic materials such as TAB & COF tapes have drastically fallen due to
expanded production capacities by the industry, which lead the firm to register
fixed-asset-impairment losses. Zinc
prices were down in the second half of the term but other nonferrous metals
maintained higher price levels backed by strong demand. By divisions, Mining & Basic Materials
up 14.4% to Yen 142,100 million, thanks to strong demand for zinc alloy
products; Intermediates up 66.8% to Yen 12,200 million, demand remaining robust
for copper foils from digital electronics, handy phones, & related
industries; Mfg & Assembly down 95.3% to Yen 1,500 million, as door locks
and related products were hard hit by slowdown of US economy; Recycling up
54.3% to Yen 1,700 million. The
recurring profit was posted at Yen 41,780 million and the net profit at Yen
7,830 million, respectively, compared with Yen 56,585 million and Yen 31,370
million net profit, respectively, a year ago.
The profit decline is referred to extraordinary losses from disposal of
fixed assets & asset-impairment losses.
(Apr/Sept/2008 results): Sales
Yen 269,093 million (down 10.04%), operating profit Yen 12,232 million (down
33.46%), recurring profit Yen 15,009 million (down 41.90%), net profit Yen
4,154 million (down 73.82%). (%
compared with the corresponding period a year ago). Zinc & lead prices continued to decline on speculation that demand
for auto parts will soften due to a slump in demand for automobiles,
particularly in North America. Profits
fell drastically with the appreciation of the Yen, falling prices of zinc, and
rising coke prices..
For the current term ending Mar
2009 the recurring profit is projected at Yen 20,000 million and the net profit
at Yen 5,000 million, on a 7% fall in turnover, to Yen 554,000 million. The firm revised down its forecast in Oct
from the previously projected figures of: sales Yen 590,000 million, recurring
profit Yen 30,000 million, net profit Yen 12,000 million. The firm says lower zinc prices have pushed
down sales of ingots, while higher prices for coke and other materials have
exacerbated profit decline. Sales will
be down from earlier estimate by Yen 37,000 million. Price falls in TAB/COF have been included, but there are growing
concerns over declining demand, says the firm.
Automobile market is expected to weaken in Parts Mfg & Assembly
Businesses.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 17,444.3 million, on 30 days normal terms.
REGISTRATION
Date Registered: May 1950
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized:
1,944 million shares
Issued:
572,966,166 shares
Sum: Yen 42,129 million
Major shareholders (%)
Japan Trustee Services T (5.7), Master Trust Bank of Japan T (5.6), Japan Trustee Services (1.7), Mellon Bank Mellon Omnibus US P (1.4), Mitsui Life Ins (1.3), Chase London St Omnibus Acct (1.2), Trust & Custody Services Inv T (1.1), BNP Paribas Securities (Japan) (1.1), Employees’ S/Holding Assn (1.0), Investors Bank West Treaty (0.9); foreign owners (28.8)
No. of shareholders: 59,937
Listed
on the S/Exchange (s) of: Tokyo, Osaka, Nagoya, Fukuoka, and
Sapporo
managements
Yoshihiko Takebayashi, pres;
Yoshiaki Kitagawa, s/mgn dir; Masao Ohmura, s/mgn dir; Naoaki Ogawa, dir;
Tomoharu Echigo, dir; Masatoshi Etoh, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Mitsui Electronics Materials, MS
Zinc Co, Mitsui Component Europe, Mitsui Kinzoku Engineering, other.
OPERATION
Activities: Manufactures, imports, exports and
wholesales nonferrous metals & products:
(Sales Breakdown by Items):
Mining & Basis Materials (19%): Zinc,
copper, precious metals (gold & silver produced as copper byproducts);
Intermediate Materials (38%): Copper foils, tape automated bonding
(TAB) tape, chip on film (COF) tape, MF Zinc power, MH alloys (hydrogen
storaging alloys), lithium manganese, metal powders (environment-friendly
lead-free soldering powder, atomized powders, ultra-fine powders, functional
& conducive powder “Passtran”, cerium oxide abrasive powders, tantalum
carbide, niobium carbide, ITO (indium tin oxide), magnetic disk, magnetic head,
optical recording media & thermal head;
Intermediate Materials (38%): rolled copper & zinc
products, lining materials in firing furnaces for ceramics (Metal Filter),
systems for measuring (sugar content, degree of ripeness, color, size &
other properties of peaches, oranges, apples, cantaloupes & other fruits),
electric & telecommunication wires & robot cables, urea identification
sensors for SCR (selective catalytic reduction);
Parts Mfg & Assembly (25%): automotive parts &
components (door locks & other functional parts for automobiles), die-cast
products of (magnesium, aluminum, zinc & plastics make), catalysts
(especially for cleaning exhaust gas of motorcycles & automobiles);
Environment & Recycling (8%): perite,
recovery of (zinc, copper, precious metals molten fly ash, industrial wastes,
polluted soils), recovery of useful metals (gold, silver, platinum, palladium),
mining resources development (zinc in Peru mines), other;
Engineering Works (2%);
Others (8%);
Overseas Sales Ratio (30.02%): N America 7.81%, Asia 19.18%,
others 3.03%.
Clients
[Mfrs, wholesalers] Mitsui
Kinzoku Trading, Mitsui & Co, Sadojima Kinzoku, Mitsui Siam, Taiwan Copper
Foil, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] MCS, MS
Zinc, Kamioka Mining & Smelting, Taiwan Copper Foil, other
Payment
record: Regular
Location:
Business area in Tokyo. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References
SMBC (Nihombashi)
Mizuho Corporate (H/O)
Relations: Satisfactory
FINANCES: (In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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595,463 |
591,518 |
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Cost of Sales |
510,085 |
500,734 |
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GROSS PROFIT |
85,378 |
90,784 |
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Selling & Adm Costs |
57,384 |
51,918 |
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OPERATING PROFIT |
27,993 |
38,865 |
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Non-Operating P/L |
13,787 |
17,720 |
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RECURRING PROFIT |
41,780 |
56,585 |
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NET PROFIT |
7,830 |
31,370 |
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BALANCE SHEET |
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Cash |
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20,645 |
17,306 |
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Receivables |
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98,149 |
92,828 |
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Inventory |
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92,719 |
88,560 |
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Securities, Marketable |
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Other Current Assets |
16,410 |
19,742 |
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TOTAL CURRENT ASSETS |
227,923 |
218,436 |
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Property & Equipment |
184,168 |
195,604 |
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Intangibles |
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3,014 |
2,222 |
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Investments, Other Fixed Assets |
71,133 |
67,135 |
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TOTAL ASSETS |
486,238 |
483,397 |
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Payables |
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52,436 |
48,054 |
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Short-Term Bank Loans |
52,172 |
58,843 |
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Other Current Liabs |
50,174 |
53,950 |
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TOTAL CURRENT LIABS |
154,782 |
160,847 |
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Debentures |
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40,000 |
40,000 |
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Long-Term Bank Loans |
49,750 |
43,376 |
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Reserve for Retirement Allw |
63,533 |
31,068 |
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Other Debts |
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(21,372) |
10,215 |
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TOTAL LIABILITIES |
286,693 |
285,506 |
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MINORITY INTERESTS |
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Common
stock |
42,129 |
42,129 |
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Additional
paid-in capital |
22,557 |
22,557 |
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Retained
earnings |
117,648 |
117,548 |
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Evaluation
p/l on investments/securities |
2,743 |
5,081 |
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Others |
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14,599 |
10,691 |
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Treasury
stock, at cost |
(131) |
(116) |
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TOTAL S/HOLDERS` EQUITY |
199,545 |
197,890 |
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TOTAL EQUITIES |
486,238 |
483,397 |
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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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41,657 |
34,077 |
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Cash
Flows from Investment Activities |
-38,049 |
-30,021 |
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Cash
Flows from Financing Activities |
-744 |
-4,744 |
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Cash,
Bank Deposits at the Term End |
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20,645 |
17,304 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
199,545 |
197,890 |
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Current
Ratio (%) |
147.25 |
135.80 |
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Net Worth
Ratio (%) |
41.04 |
40.94 |
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Recurring
Profit Ratio (%) |
7.02 |
9.57 |
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Net
Profit Ratio (%) |
1.31 |
5.30 |
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Return
On Equity (%) |
3.92 |
15.85 |
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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.47.76 |
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UK Pound |
1 |
Rs.74.87 |
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Euro |
1 |
Rs.60.81 |
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%)