MIRA
INFORM REPORT
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Report Date : |
30.09.2014 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI MATERIALS CORPORATION |
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Registered Office : |
1-3-2 Ohtemachi Chiyodaku |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
April 1950 |
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Legal Form : |
Limited Company |
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Line of Business : |
Nonferrous metal smelting, manufacturer of cement, metal
processed products |
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No. of Employees : |
23,112 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
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 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry cooperation,
a strong work ethic, mastery of high technology, and a comparatively small
defense allocation (1% of GDP) helped Japan develop a technologically advanced
economy. Two notable characteristics of the post-war economy were the close
interlocking structures of manufacturers, suppliers, and distributors, known as
keiretsu, and the guarantee of lifetime employment for a substantial portion of
the urban labor force. Both features are now eroding under the dual pressures
of global competition and domestic demographic change. Japan's industrial
sector is heavily dependent on imported raw materials and fuels. A small
agricultural sector is highly subsidized and protected, with crop yields among
the highest in the world. While self-sufficient in rice production, Japan
imports about 60% of its food on a caloric basis. For three decades, overall
real economic growth had been spectacular - a 10% average in the 1960s, a 5%
average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in
the 1990s, averaging just 1.7%, largely because of the after effects of
inefficient investment and an asset price bubble in the late 1980s that
required a protracted period of time for firms to reduce excess debt, capital,
and labor. Modest economic growth continued after 2000, but the economy has
fallen into recession three times since 2008. A sharp downturn in business
investment and global demand for Japan's exports in late 2008 pushed Japan into
recession. Government stimulus spending helped the economy recover in late 2009
and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude
earthquake and the ensuing tsunami in March disrupted manufacturing. The
economy has largely recovered in the two years since the disaster, but
reconstruction in the Tohoku region has been uneven. Prime Minister Shinzo ABE
has declared the economy his government's top priority; he has overturned his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus, monetary easing, and
structural reform. Japan joined the Trans Pacific Partnership negotiations in
2013, a pact that would open Japan's economy to increased foreign competition
and create new export opportunities for Japanese businesses. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2013 stood as the fourth-largest economy in the world after second-place
China, which surpassed Japan in 2001, and third-place India, which edged out
Japan in 2012. The new government will continue a longstanding debate on
restructuring the economy and reining in Japan's huge government debt, which is
exceeding 230% of GDP. To help raise government revenue and reduce public debt,
Japan decided in 2013 to gradually increase the consumption tax to a total of
10% by the year 2015. Japan is making progress on ending deflation due to a
weaker yen and higher energy costs, but reliance on exports to drive growth and
an aging, shrinking population pose other major long-term challenges for the
economy.
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Source
: CIA |
Company name
MITSUBISHI MATERIALS CORPORATION
REGD NAME
Mitsubishi Material KK
MAIN OFFICE
1-3-2 Ohtemachi Chiyodaku Tokyo 100-8117 JAPAN
Tel: 03-5252-5201
Fax: 03-5252-5272 -
*.. The given address
is its Sumidaku Office
URL: http://www.mmc.co.jp
E-Mail address: (thru
the URL)
ACIVITIES
Nonferrous metal smelting, mfg of cement, metal processed
products, other
BRANCHES
Tokyo, Osaka, Nagoya, Sapporo, Sendai, other (Tot 25)
Overseas
USA (10), Europe (7), Asia (6), China (5), Mexico,
Australia, other (Tot 35)
FACTORIES
Naoshima, Akita, Sakai, Yokose, Okegawa, Niigata, Gifu,
other (Tot 21)
CHIEF EXEC
HIROSHI YAO, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,414,796 M
PAYMENTS NO
COMPLAINTS CAPITAL Yen 119,457 M
TREND UP WORTH Yen 525,707 M
STARTED 1950 EMPLOYES 23,112
COMMENT
NONFERROUS METAL SMELTER
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
Unit:
In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This subject company was established originally as Mitsubishi
Metal Corp, and later, in Sept 1990, changed as captioned when merged with
Mitsubishi Mining & Cement. This is
the top nonferrous metal smelter.
Actively developing copper smelting plant in Indonesia. Engaged in 4 core businesses of cement, copper,
processing & electronic materials.
Strengthening recycle business.
The company acquired 100% stake in cement and ready-mixed concrete firm
in California thru its subsidiary. .
FINANCIAL INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen
1,414,796 million, a 9.9% up from Yen 1,287,251 million in the previous
term. Domestic sales of cement were
brisk. Sales in the US and China
rebounded. Copper processing &
smelting both were buoyant, on weaker Yen.
The recurring profit was posted at Yen 76,902 million and the net profit
at Yen 52,551 million, respectively, compared with Yen 74,414 million recurring
profit and Yen 74,414 million net profit at Yen 36,948 million, respectively, a
year ago.
(Apr/Jun/2014 results): Sales Yen 366,932 million (up 2.2%),
operating profit Yen 14,012 million (down 17.6%), recurring profit Yen 17,439
million (up 3.9%), net profit Yen 9,509 million (down 46.4%). (% compared with the corresponding period a year
ago).
For the current term ending Mar 2015 the recurring profit is
projected at Yen 84,000 million and the net profit at Yen 50,000 million, on a
6.0% rise in turnover, to Yen 1,500,000 million. Operating profit will continue growth, with
continuing expansion in sales of cement.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 29,539.0 million, on 30 days normal terms.
REGISTRATION
Date Registered: Apr 1950
Legal Status: Limited
Company (Kabushiki Kaisha
Authorized: 3,400 million shares
Issued: 1,314,896,351
shares
Sum: Yen
119,457 million
Major shareholders (%): Japan Trustee Services T (6.2),
Master Trust Bank of Japan T (4.1), Zenkyoren (2.5), Meiji Yasuda Life Ins
(2.3), MUFG (1.8), Mitsubishi Heavy Industries (1.4), Nippon Life Ins (1.3),
Japan Trustee Services T1 (1.2), Mitsubishi Electric (1.1); foreign owners
(16.9)
No. of shareholders: 92,693
Listed on the S/Exchange (s) of: Tokyo
Managements: Akihiko Ide, ch; Hiroshi Yao, pres; Toshinori
Kato, v pres; Akira Takeuchi, v pres; Akio Hamachi, mgn dir; Masaru Aramaki,
mgn dir; Osamu Iida, mgn dir; Naoki Oni, mgn dir; Yukio Okamoto, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies: Mitsubishi Aluminium, Mitsubishi Shindoh,
other.
OPERATION
Activities: Manufacturing & smelting: cement (13%),
copper (41%), processing (8%), electronic materials (4%), aluminium (11%),
others (energy, precious metals, recycling, other) (--23%)
Overseas Sales Ratio (35%)
Clients: [Mfrs, wholesalers] Mitsui & Co, Mocatta GRO,
Mitsubishi Shindoh Co,
Mitsubishi Ube Cement, Mitsubishi Material Trading, SUMCO,
other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Maintenance
Techno, Fukuchiyama
Heavy Ind, Indonesia Copper Smelting, other
Payment record: No Complaints
Location: Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank
References:
MUFG (H/O)
Mitsubishi UFJ Trust Bank (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME
STATEMENT |
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Annual Sales |
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1,414,796 |
1,287,251 |
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Cost of Sales |
1,199,192 |
1,094,588 |
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GROSS PROFIT |
215,604 |
192,663 |
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Selling & Adm Costs |
149,322 |
140,163 |
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OPERATING PROFIT |
66,281 |
52,500 |
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Non-Operating P/L |
10,621 |
21,914 |
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RECURRING PROFIT |
76,902 |
74,414 |
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NET PROFIT |
52,551 |
36,948 |
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BALANCE
SHEET |
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Cash |
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63,486 |
64,416 |
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Receivables |
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219,016 |
211,748 |
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Inventory |
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192,720 |
282,352 |
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Securities, Marketable |
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Other Current Assets |
299,243 |
220,415 |
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TOTAL CURRENT ASSETS |
774,465 |
778,931 |
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Property & Equipment |
650,571 |
658,974 |
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Intangibles |
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48,226 |
48,281 |
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Investments, Other Fixed Assets |
305,243 |
325,581 |
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TOTAL ASSETS |
1,778,505 |
1,811,767 |
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Payables |
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106,656 |
105,889 |
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Short-Term Bank Loans |
256,098 |
287,942 |
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Other Current Liabs |
375,764 |
402,506 |
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TOTAL CURRENT LIABS |
738,518 |
796,337 |
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Debentures |
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85,140 |
110,040 |
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Long-Term Bank Loans |
268,605 |
268,998 |
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Reserve for Retirement Allw |
52,787 |
59,601 |
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Other Debts |
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107,747 |
110,559 |
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TOTAL LIABILITIES |
1,252,797 |
1,345,535 |
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MINORITY INTERESTS |
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Common stock |
119,457 |
119,457 |
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Additional paid-in capital |
92,272 |
92,272 |
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Retained earnings |
207,354 |
158,456 |
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Evaluation p/l on
investments/securities |
31,972 |
40,516 |
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Others |
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76,434 |
57,222 |
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Treasury stock, at cost |
(1,782) |
(1,692) |
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TOTAL S/HOLDERS` EQUITY |
525,707 |
466,231 |
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TOTAL EQUITIES |
1,778,505 |
1,811,767 |
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CONSOLIDATED
CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash Flows from Operating Activities |
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102,932 |
101,616 |
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Cash Flows from Investment
Activities |
-44,863 |
-88,514 |
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Cash Flows from Financing Activities |
-69,329 |
-36,316 |
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Cash, Bank Deposits at the Term End |
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62,078 |
63,299 |
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ANALYTICAL
RATIOS Terms
ending: |
31/03/2014 |
31/03/2013 |
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Net Worth (S/Holders' Equity) |
525,707 |
466,231 |
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Current Ratio (%) |
104.87 |
97.81 |
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Net Worth Ratio (%) |
29.56 |
25.73 |
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Recurring Profit Ratio (%) |
5.44 |
5.78 |
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Net Profit Ratio (%) |
3.71 |
2.87 |
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Return On Equity (%) |
10.00 |
7.92 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.43 |
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UK Pound |
1 |
Rs.99.73 |
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Euro |
1 |
Rs.77.93 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
SHG |
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 |
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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-- |
NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.