MIRA INFORM REPORT

 

 

Report Date :

18.05.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

IHI CORP  

 

 

Registered Office :

Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-8710

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

January 1889

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Engineering works of aerospace, ships/marine structure, industrial machinery, energy-related fields

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 14,051.7 Million

Status :

Good

Payment Behaviour :

Regular

Litigation :

----

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

IHI CORP

 

 

REGD NAME 

 

KK I H I 

 

 

MAIN OFFICE

 

Toyosu IHI Bldg, 3-1-1 Toyosu Kotoku Tokyo 135-8710 JAPAN

Tel: 03-6204-7800     Fax: 03-6204-8800

URL:                             http://www.IHI.co.jp/

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, other (Tot 19)

 

 

OVERSEAS   

 

Paris, Piraeus, Bangkok, Beijing, Shanghai, Taipei, Kaohsiung, Hanoi, Jakarta, Manila, Seoul, New Delhi, Algiers (--branch offices) (Tot 14)

 

(Subsidiaries/JV’s): Europe (9), Americas (11), Oceania (1), Asia (24, including 9 in China)

 

 

FACTORIES

 

Aioi, Kure, Soma, Yokohama, Mizuho, Chita, other (Tot 10)

 

CHIEF EXEC 

 

KAZUAKI KAMA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                             A/SALES          Yen 1,242,700 M

PAYMENTS                  REGULAR                     CAPITAL           Yen 95,762 M

TREND             SLOW                          WORTH            Yen 227,065 M

STARTED                     1889                             EMPLOYES      25,909

 

 

COMMENT

 

HEAVY ELECTRIC MACHINERY MFR. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 14,051.7 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2011 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.  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.  Developed mfg equipment for vaccines for new-type influenza in collaboration with pharmaceutical venture firm.  Taking stance against additional investment in GX rocket.  Launched a new sales base in Brazil in autumn 2010 to develop the sales channel of floating LNG plants.  In railway rollingstock, it is planning to move into China with diesel railcars. 

 

An N-power plant equipment JV with Toshiba Corp will start up operations in full scale in March 2012 term. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 1,242,700 million, a 10.5% down from Yen 1,388,042 million in the previous term.  Japan’s economy, after hitting the bottom, began to recover against a background of inventory adjustment progress in Japan & overseas.  Despite this, however, there remained a large sense of oversupply with respect to facilities and employees due to a substantial gap between supply and demand, and continuing deflationary situation.    Orders received during the term fell 17.5% from the previous year.  Sales declined due to lower sales in Energy & Plants Operations, Industrial Machinery Operations and other segments despite a firm performance in Shipbuilding and Offshore Operations and Logistics Systems and Structures Operations.  The recurring profit was posted at Yen 33,027 million and net profit at Yen 17,378 million, respectively, compared with Yen 13,521 million recurring profit and Yen 7,407 million net loss, respectively, a year ago.

 

(Apr/Sept/2010 results): sales Yen 563,683 million (up 3.2%), operating profit Yen 29,105 million (up 78.4%), recurring profit Yen 25,069 million (up 227.1%), net profit Yen 13,494 million (up 236.8%).  (% compared with the corresponding period a year ago).

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 24,000 million and the net profit at Yen 15,000 million, respectively, on a 5.0% fall in turnover, to Yen 1,180,000 million  New orders will fall slightly below the projected Yen 1.29 billion (up 33% over the preceding term).  Sales of the automobile-use superchargers are off to a better-than-expected start.  Strong Yen is pressing.

 

The financial situation is considered maintained FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 14,051.7 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 (%): Japan Trustee Services Bank T (Toshiba Corp) (3.7), Dai-ichi Life Ins (3.6), Japan Trustee Services T (3.2), TCSB (Mizuho Bank) (2.9), Master Trust Bank of Japan T (2.7), Nippon Life Ins (2.3), Company’s Kyoeikai Assn (1.6), Mitsui Sumitomo Ins (1.4), Mizuho Corporate Bank (1.4); foreign owners (15.5)

 

No. of shareholders: 115,873

 

Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya

 

Managements: Kazuaki Kama, pres & CEO; Yasuyuki Watanabe, v pres; Yuji Hiruma, v pres; Ichiro Hashimoto, v pres; Makoto Serizawa, dir, Kazuo Tsukahara, dir; Tamotsu Saito, dir; Fusayoshi Nakamura, dir; Sadao Idekawa, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: IHI Aerospace, IHI Marine United, IHI Europe Ltd, other

 

 

OPERATION

           

Activities: Heavy machinery engineering works:

 

(Sales Breakdown by Divisions):

 

Distribution Systems & Steel Structures (15%): material handling systems, physical distribution & factory automation systems, parking systems, bridges, construction materials;

 

Industrial Machinery (12%): iron & steel mfg equipment, vehicular turbochargers, mass-produced machinery, others

 

Energy & Plant Operations (26%); boilers, gas turbines, components for nuclear power     plants, environmental control systems, storage facilities, others;

 

Aero-Engine & Space Operations (22%): jet engines, space-related equipment, others;

 

Shipbuilding & Offshore Operations (73%): shipbuilding, ship repairs, offshore structures;

 

Other Operations (8%): diesel engines, agricultural machinery, construction machinery,     financing & service industry, marine transport, others

 

Overseas sales ratio (42.2%): Asia 9.8%; N America 11.2%; Latin America 9.0%; Europe 5.7%; others 6.5%.

 

Clients: [Government agencies, electric powers, mfrs] Defense Agency, Toshiba Corp, Japanese Aero Engine Corp, Tokyo Electric Power, Sumitomo Metal Ind, Japan Nuclear   Fuel, other.

           

No. of accounts: 2,000 - 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

 

 

Financials

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,242,700

1,388,042

 

  Cost of Sales

1,048,875

1,221,612

 

      GROSS PROFIT

193,825

166,430

 

  Selling & Adm Costs

146,680

140,751

 

      OPERATING PROFIT

47,145

25,679

 

  Non-Operating P/L

-14,118

-12,158

 

      RECURRING PROFIT

33,027

13,521

　

      NET PROFIT

17,378

-7,407

BALANCE SHEET

 

 

 

 

  Cash

　

76,641

87,547

 

  Receivables

 

320,227

352,840

 

  Inventory

 

404,455

471,164

 

  Securities, Marketable

30,894

13,650

 

  Other Current Assets

109,525

111,227

 

      TOTAL CURRENT ASSETS

941,742

1,036,428

 

  Property & Equipment

290,909

273,964

 

  Intangibles

 

23,116

24,341

 

  Investments, Other Fixed Assets

156,654

154,609

 

      TOTAL ASSETS

1,412,421

1,489,342

 

  Payables

 

241,185

294,871

 

  Short-Term Bank Loans

173,527

199,084

 

　

 

　

　

 

  Other Current Liabs

343,452

404,226

 

      TOTAL CURRENT LIABS

758,164

898,181

 

  Debentures

 

40,000

50,000

 

  Long-Term Bank Loans

184,190

128,626

 

  Reserve for Retirement Allw

135,217

137,796

 

  Other Debts

　

67,785

68,789

 

      TOTAL LIABILITIES

1,185,356

1,283,392

 

      MINORITY INTERESTS

 

 

 

Common stock

95,762

95,762

 

Additional paid-in capital

43,028

43,032

 

Retained earnings

65,933

48,423

 

Evaluation p/l on investments/securities

9,462

4,679

 

Others

 

12,985

14,209

 

Treasury stock, at cost

(105)

(155)

 

      TOTAL S/HOLDERS` EQUITY

227,065

205,950

　

      TOTAL EQUITIES

1,412,421

1,489,342

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

76,708

-17,638

 

Cash Flows from Investment Activities

-62,754

-41,727

 

Cash Flows from Financing Activities

-1,800

42,812

　

Cash, Bank Deposits at the Term End

　

124,870

107,720

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

227,065

205,950

 

 

Current Ratio (%)

124.21

115.39

 

 

Net Worth Ratio (%)

16.08

13.83

 

 

Recurring Profit Ratio (%)

2.66

0.97

 

 

Net Profit Ratio (%)

1.40

-0.53

 

 

Return On Equity (%)

7.65

-3.60

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.22

UK Pound

1

Rs.71.41

Euro

1

Rs.59.99

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

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%)

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.