RNS Number:3961O
Mitsubishi Corporation
06 August 2003
August 6, 2003
Mitsubishi Corporation
Results for the First Quarter Ended June 30, 2003 (US GAAP)
Consolidated Income (Billions of Yen)
FY2004 FY2003 Outlook for fiscal Summary of changes from the
year ending March
2004 same period of the previous fiscal year
Three 3 Three Increase percentage
months months or of
ended ended decrease achievement
June June 2002
2003
Operating 3,561.8 3,021.9 539.9 14,300.0 25% a. Gross profit
transactions
Gross profit rose 26.2 billion yen, or
16%, on a improved profitability of
petroleum products transactions, the
Gross profit 186.7 160.5 26.2 a 775.0 24% consolidation of Metal One Corporation (a
steel products subsidiary) and other
factors.
Selling, general (155.6) (139.1) (16.5) b (645.0) 24%
and administrative
expenses b. Selling, general and administrative
expenses
The increase principally reflects higher
Provision for (0.6) (0.3) (0.3) c (10.0) 6% pension costs at the parent company and
doubtful the consolidation of new subsidiaries,
receivables such as Metal One.
Operating income 30.5 21.1 9.4 120.0 25% c. Provision for doubtful receivables
Reflects new bad debts at subsidiaries.
Interest (4.0) (3.7) (0.3) (20.0) 20%
expense-net
d. Dividends
Partly reflects the sale of some rights
in
Dividends 8.0 16.7 (8.7) d 25.0 32% energy resource-related businesses.
Gain (loss) on 6.0 (3.5) 9.5 e 42% e. Gain (loss) on marketable securities
marketable and investments
securities and
investments - net Reflects capital gains from the unwinding
of cross-shareholdings and IPOs, and the
25.0 absence of the write-downs of
available-for-sale marketable securities
Gain (loss) on (0.1) 3.4 (3.5) f recorded in the previous fiscal year.
property and
equipment - net
f. Gain (loss) on property and equipment
- net
Other expense - 4.5 (7.4) 11.9 g
net Due to absence of the gains recorded in
the previous fiscal year on the sale of
company-owned housing.
Income from 44.9 26.6 18.3 150.0 30%
consolidated
operations before g. Other expense -net
income taxes
Mainly reflects a significant decline in
losses on the revaluation of foreign
currency contracts and other derivatives
Income taxes (20.7) (14.0) (6.7) (80.0) 26% in accordance with derivative accounting.
Minority interests (3.1) (1.5) (1.6) (15.0) 21% h. Equity in earnings of affiliated
in income of companies - net
consolidated
subsidiaries Reflects continuation of strong results
at
natural resource development-related
affiliates, as well as growth at
automobile-related companies in Asia and
Equity in earnings 10.4 9.0 1.4 h 45.0 23% Europe.
of affiliated
companies-net
i. Cumulative effect of a change in
accounting principle
Cumulative effect --- 8.1 (8.1) i --- ---
of a change in Reflects the absence of a one-time gain
accounting recorded in the previous fiscal year,
principle resulted from recognizing the aggregate
unamortized amount of negative goodwill
and equity-method goodwill based on a
newly introduced accounting standard.
Net income 31.5 28.2 3.3 100.0 32%
( For Reference )
Core earnings 45.5 43.4 2.1 180.0 25%
capabilities (*1)
(*1) Core earnings capabilities c Operating income (before the deduction of provision
for doubtful receivables) + Interest expense-net + Dividends + Equity in earnings of
affiliated companies-net
Assets and Liabilities
June March 31, 2003 Outlook for Summary of changes from March 31, 2003
30, fiscal year
ending March
2003 2004
Increase Increase or
or decrease
decrease j. Total assets
Increased approximately 100.0 billion yen
due to factors such as a rise in net
unrealized gains on securities available
for sale accompanying the rebound in
stock prices and the effect of
consolidating aircraft leasing-related
Total assets 8,198.5 8,097.9 100.6 j 8,000.0 198.5 subsidiaries.
Total shareholders' 1,008.8 937.1 71.7 k 1,000.0 8.8 k. Shareholders' equity
equity
Now above 1 trillion yen again due to a
71.7 billion yen rise attributable to net
income, an increase in net unrealized
Interest bearing 4,040.2 3,912.9 127.3 l 3,800.0 240.2 gains on securities available for
sale
liabilities (*2) due to recovering share prices, and an
improvement in foreign currency
transaction adjustments.
(Debt-to-equity 4.0 4.2 - 0.2 3.8 0.2
ratio GROSS)
l. Interest-bearing liabilities
Increased by 127.3 billion yen due to the
(Debt-to-equity 3.6 3.8 - 0.2 3.4 0.2 issuance of commercial paper to meet
ratio NET) increased funding needs at the parent
company and the effect of consolidating
new subsidiaries.
(*2) Interest bearing liabilities does not include "notes and bills discounted"
(9.2 billion yen) and "impact of adopting SFAS 133." (76.8 billion yen)
(Change of major Three months Three months Increase or ( For Reference )
indices) ended June ended June decrease
2003 2002 *1 Core earnings capabilities :
The sum of recurring profit and
expense items, this yardstick is
Crude oil (USD/BBL) 24.4 24.4 --- used to measure Mitsubishi
Corporationfs ability to generate
earnings.
Foreign exchange (YEN/ 118.5 127.1 - 8.6 (7% yen *2 Interest-bearing liabilities :
USD) appreciation)
The portion of interest-bearing
liabilities on the balance sheet
representing funds procured that
Interest (%)TIBOR 0.09 0.09 --- Mitsubishi Corporation is obliged
to repay.
MITSUBISHI CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2003
(UNAUDITED)
Based on US GAAP
Mitsubishi Corporation
Investor Relations Office
2-6-3 Marunouchi, Chiyoda-ku, Tokyo, JAPAN 100-8086
Phone: +81-3-3210-8580 Fax:+81-3-3210-8583
Email:ml.ir@mitsubishicorp.com
For Immediate Release
Mitsubishi Corporation Announces Consolidated Financial Results
for the First Quarter Ended June 30, 2003
(Based on US GAAP)
TOKYO, August 6, 2003c..Mitsubishi Corporation announced today its consolidated
results, using accounting principles generally accepted in the United States,
for the first quarter ended June 30, 2003.
Outline of Consolidated Results
Consolidated operating transactions for the first quarter of fiscal 2004 were
3,561.8 billion yen, 539.9 billion yen, or 17.9%, higher than in the same
quarter of the previous fiscal year. Gross profit was also up, increasing 26.2
billion yen, or 16.3%, to 186.7 billion yen, with all business groups recording
higher earnings. Most noteworthy were the performances of the Energy Business
Group, which benefited from improved profitability of petroleum products
transactions, and the Metals Group, where the consolidation of a steel products
subsidiary boosted results.
Selling, general and administrative expenses rose, mainly reflecting higher
retirement-related expenses at the parent company and the effect of the new
consolidation in the Metals Group. Nevertheless, this was outweighed by the
higher gross profit, resulting in operating income of 30.5 billion yen, which
was 9.4 billion yen, or 44.4%, higher year on year.
In other income (expenses), there was a net improvement of 9.0 billion.
Dividends declined, primarily due to lower dividends from energy
resource-related businesses, and a loss on property and equipment - net
was recorded, compared with a gain in the previous yearfs first quarter.
Offsetting these declines, however, were an increase in gain on marketable
securities and investments due to gains on the sale of shares and lower
write-downs, and a significant decline in losses on the revaluation of
derivative transactions such as foreign currency contracts.
Moreover, equity in earnings of affiliated companies - net rose 1.4
billion yen on continuing strong results from natural resource
development-related affiliates as well as growth at automobile-related companies
in Asia and Europe.
As a result, net income increased 3.3 billion yen, or 11.5%, to 31.5 billion
yen. This represented an achievement rate of 31.5% against the companyfs
forecast of 100 billion yen in net income for fiscal 2004.
Forward-Looking Statements
The statements included in this release contain forward-looking statements about
Mitsubishi Corporationfs future plans, strategies, beliefs and performance that
are not historical facts. Such statements are based on the companyfs assumptions
and beliefs in light of competitive, financial and economic data currently
available and are subject to a number of risks, uncertainties and assumptions
that, without limitation, relate to world economic conditions, exchange rates
and commodity prices. Accordingly, Mitsubishi Corporation wishes to caution
readers that actual results may differ materially from those projected in this
release.
For further information contact:
Mitsubishi Corporation
Investor Relations Office
Phone: 81-3-3210-8580
Fax: 81-3-3210-8583
e-mail: ml.ir@mitsubishicorp.com
August 6, 2003
Mitsubishi Corporation
FINANCIAL HIGHLIGHTS
FOR THE THREE MONTHS ENDED JUNE 30, 2003
(UNAUDITED)
(Mitsubishi Corporation and subsidiaries based on US GAAP)
1.Consolidated Results for the First Quarter
Operating transactions Operating income Income from Net income
consolidated
operations before
income tax
(Millions of Yen) (Millions of Yen) (Millions of Yen) (Millions of Yen)
For the three-months 3,561,814 30,511 44,919 31,465
ended June 30, 2003
For the three-months 3,021,939 21,129 26,579 28,213
ended June 30, 2002
Net income per share of common stock
Basic Diluted
(Yen) (Yen)
For the three-months
ended June 30, 2003 20.10 18.56
For the three-months
ended June 30, 2002 18.01 17.78
Operating transactions Operating income Income from Net income
consolidated
operations before
income tax
(Millions of Yen) (Millions of Yen) (Millions of Yen) (Millions of Yen)
Prospects for the 14,300,000 120,000 150,000 100,000
year ending March 31,
2004
(Forecasted in May,
2003)
Achievement ratio at 24.9% 25.4% 29.9% 31.5%
this quarter
2.Assets and shareholders' equity
Total assets Shareholder's equity Shareholders' equity Shareholders' equity
to total assets per share
(Millions of Yen) (Millions of Yen) (%) (Yen)
June 30, 2003 8,198,475 1,008,774 12.3 644.31
March 31, 2003 8,097,937 937,058 11.6 598.51
3. Number of consolidated subsidiaries : 363
Number of affiliated companies accounted for by equity method : 164
(The numbers of consolidated subsidiaries and equity-method affiliates stated
above represent companies, which the parent company directly consolidates or
applies equity method.)
(1) The consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America
(2) The translations of Japanese yen amounts into United States dollar amounts
with respect to the three months ended June 30, 2003 are included solely for the
convenience of readers outside Japan and have been made at the rate of Y 120=USD
1, the approximate rate of exchange at June 30, 2003.
(3) Certain restatements for the three months ended June 30, 2002 have been made
mainly to conform to Statement of Financial Accounting Standards ("SFAS")
No.142, "Goodwill and Other Intangible Assets".
(4) Operating transactions and operating incomes, as presented above, are
voluntary disclosures solely for the convenience of Japanese investors.
Operating transactions represents the gross transaction volume or the aggregate
nominal value of the sales contracts in which the companies act as principal and
transactions in which the companies serve as agent. Operating transactions
exclude the contract value of transactions in which the companiesf role is
limited to that of a broker.
Operating income reflects the companiesf (a) gross profit, (b) selling, general
and administrative expenses, and (c) provision for doubtful receivables.
Operating transactions and operating income, as presented above, are non-GAAP
measure commonly used by similar Japanese trading companies and should not be
construed as equivalent to, or a substitute or proxy for, revenues, or as an
indicator of our operating performance, liquidity or cash flows generated by
operating, investing or financing activities.
Forward-looking Statements
This presentation contains forward-looking statements about Mitsubishi
Corporation's future plans, strategies, beliefs and performance that are not
historical facts. Such statements are based on the company's assumptions and
beliefs in light of competitive, financial and economic data currently available
and are subject to a number of risks, uncertainties and assumptions that,
without limitation, relate to world economic conditions, exchange rates and
commodity prices. Accordingly, Mitsubishi Corporation wishes to caution readers
that actual results may differ materially from those projected in this
presentation.
Mitsubishi Corporation and subsidiaries
STATEMENTS OF CONSOLIDATED INCOME iUS GAAPj
for the three months ended June 30, 2003 and 2002 (unaudited)
Millions of yen Millions of
U.S. dollars
Three months Three months Increase or (-) Three months
decrease
ended ended ended
Jun. 30, 2003 Jun. 30, 2002 Jun. 30, 2003
Operating transactions 3,561,814 3,021,939 539,875 17.9 29,682
Gross profit 186,680 160,480 26,200 16.3 1,556
Gross profit ratio 5.24% 5.31%
Selling, general and administrative (155,581) (139,068) -16,513 11.9 (1,297)
expenses
Provision for doubtful receivables (588) (283) -305 - (5)
Operating income 30,511 21,129 9,382 44.4 254
Other income (expenses) :
Interest expense - net (4,004) (3,733) -271 7.3 (34)
Dividend income 8,019 16,711 -8,692 -52.0 67
Gain (loss) on marketable securities
and investments - net 5,976 (3,541) 9,517 - 50
Gain (loss) on property and equipment-net (133) 3,357 -3,490 - (1)
Other - net 4,550 (7,344) 11,894 - 38
Other income - net 14,408 5,450 8,958 - 120
Income from consolidated operations
before income taxes 44,919 26,579 18,340 69.0 374
Income taxes (20,736) (13,985) -6,751 - (173)
Income from consolidated operations 24,183 12,594 11,589 92.0 201
Minority interests in income of (3,132) (1,531) -1,601 - (26)
consolidated subsidiaries
Equity in earnings of
affiliated companies-net
(less applicable income taxes) 10,414 9,050 1,364 15.1 87
Income before cumulative effect of changes
in accounting principles 31,465 20,113 11,352 56.4 262
Cumulative effect of changes in accounting
principles - 8,100 -8,100 - -
Net income 31,465 28,213 3,252 11.5 262
(1) Cumulative effect of changes in accounting principles and Net income have
been restated for the three months ended June 30, 2002 to conform to SFAS
No.142, Goodwill and Other Intangible Assets. The SFAS No. 142 requires for the
goodwill impairment losses totaling Y 536 million, recognized in the three
months ended March, 2003 through the transitional impairment test, be stated
retroactively for the three months ended June 30, 2002.
(2) Effective April 1, 2003, the companies adopted SFAS 143, Accounting for
Asset Retirement Obligations. The adoption of SFAS No. 143 did not have a
material impact on the companies' consolidated financial position and results of
operations.
Mitsubishi Corporation and subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETSiUS GAAPj
June 30, 2003 (unaudited) and March 31, 2003
Millions of yen Millions of
U.S. dollars
Jun. 30, Mar. 31, Increase or Jun. 30,
2003 2003 (-)decrease 2003
ASSETS
Current assets:
Cash, time deposits and short-term investments 541,996 515,519 26,477 4,516
Receivables-trade, less allowance for doubtful
receivables 2,590,969 2,609,963 -18,994 21,591
Inventories 462,923 485,071 -22,148 3,858
Other current assets 355,400 311,595 43,805 2,962
Total current assets 3,951,288 3,922,148 29,140 32,927
Investments and non-current receivables:
Investments in and advances to affiliated companies
and other investments 1,969,704 1,901,881 67,823 16,414
Non-current receivables, less allowance for doubtful
receivables 609,652 608,110 1,542 5,081
Total investments and non-current receivables 2,579,356 2,509,991 69,365 21,495
Property and equipment - net 1,212,369 1,176,613 35,756 10,103
Other assets 455,462 489,185 -33,723 3,796
Total 8,198,475 8,097,937 100,538 68,321
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current maturities of long-term
debt 1,128,402 961,665 166,737 9,403
Payables-trade 1,811,478 1,863,659 -52,181 15,096
Other current liabilities 457,918 448,130 9,788 3,816
Total current liabilities 3,397,798 3,273,454 124,344 28,315
Long-term debt, less current maturities 2,997,821 3,085,016 -87,195 24,982
Other long-term liabilities 794,082 802,409 -8,327 6,617
Shareholders' equity:
Common stock 126,609 126,609 - 1,055
Additional paid-in capital 179,491 179,491 - 1,496
Retained earnings:
Appropriated for legal reserve 35,750 35,550 200 298
Unappropriated 897,939 872,939 25,000 7,483
Accumulated other comprehensive income (loss):
Net unrealized gains on securities available for 84,058 54,745 29,313 701
sale
Net unrealized losses on derivatives (8,353) (10,000) 1,647 (70)
Minimum pension liability adjustments (148,478) (148,126) -352 (1,237)
Foreign currency translation adjustments (157,507) (173,401) 15,894 (1,313)
Subtotal (230,280) (276,782) 46,502 (1,919)
Less treasury stock (735) (749) 14 (6)
Total shareholders' equity 1,008,774 937,058 71,716 8,407
Total 8,198,475 8,097,937 100,538 68,321
Mitsubishi Corporation and subsidiaries
Statements of Consolidated Comprehensive Income (Loss) (USGAAP)
for the three months ended June 30, 2003 and 2002 (unaudited)
Millions of yen Millions of U.S.
dollars
Three months ended Three months ended Three months ended
Jun. 30, 2003 Jun. 30, 2002 Jun. 30, 2003
Comprehensive Income (Loss)
Net income 31,465 28,213 262
Other comprehensive income (loss):
Unrealized gains (losses) on securities
available for sale 29,313 (3,465) 244
Unrealized gains on derivative instruments 1,647 5,278 14
Minimum pension liability adjustments (352) - (3)
Foreign currency translation adjustments 15,894 7,177 133
Other comprehensive income 46,502 8,990 388
Comprehensive Income 77,967 37,203 650
(1) Net income and Other comprehensive income for the three month ended June 30,
2002 have been restated mainly to conform to SFAS No. 142, "Goodwill and other
intangible assets". See Note 1 of STATEMENTS OF CONSOLIDATED INCOME.
Mitsubishi Corporation and subsidiaries
SEGMENT INFORMATION (US GAAP)
for the three months ended June 30, 2003 and 2002 (unaudited)
(OPERATING SEGMENT INFORMATION)
The companies' operating segment information at and for the three months ended
June 30, 2003 and 2002 is as follows:
Three months ended June 30, 2003
Millions of yen
New Energy Metals Machinery Chemicals Living Total Eliminations Consolidated
Business
Business Essentials or
Initiative
Unallocated
Operating 48,917 911,587 678,781 582,561 361,615 1,036,780 3,620,241 (58,427) 3,561,814
transactions
Gross profit 10,858 19,925 41,242 33,187 16,655 64,071 185,938 742 186,680
Operating income (2,129) 8,941 15,301 10,715 5,366 11,536 49,730 (19,219) 30,511
(loss)
Net income 995 11,245 9,330 10,050 2,811 7,566 41,997 (10,532) 31,465
(loss)
Segment assets 1,033,789 872,890 1,542,474 2,042,732 577,811 1,442,606 7,512,302 686,173 8,198,475
Millions of yen
New Energy Metals Machinery Chemicals Living Total Eliminations Consolidated
Business
Business Essentials or
Initiative
Unallocated
Operating 408 7,597 5,656 4,855 3,013 8,640 30,169 (487) 29,682
transactions
Gross profit 90 166 344 276 139 534 1,549 7 1,556
Operating income (18) 75 127 89 45 96 414 (160) 254
(loss)
Net income (loss) 8 94 78 84 23 63 350 (88) 262
Segment assets 8,615 7,274 12,854 17,023 4,815 12,022 62,603 5,718 68,321
Three months ended June 30, 2002
Millions of yen
New Energy Metals Machinery Chemicals Living Total Eliminations Consolidated
Business
Business Essentials or
Initiative
Unallocated
Operating 65,561 666,598 496,377 505,702 321,035 968,676 3,023,949 (2,010) 3,021,939
transactions
Gross profit 10,073 11,760 33,206 29,077 15,519 59,638 159,273 1,207 160,480
Operating income (2,819) 1,054 14,198 6,334 5,714 11,427 35,908 (14,779) 21,129
(loss)
Net income (1,165) 8,207 7,945 5,670 3,389 8,380 32,426 (4,213) 28,213
(loss)
Segment assets 1,126,769 849,023 1,197,040 2,109,761 542,733 1,488,800 7,314,126 748,134 8,062,260
(1) The segment information has been prepared in accordance with accounting
principles generally accepted in Japan (Japanese GAAP), and the difference
between Japanese GAAP and U.S. GAAP are included in Eliminations or Unallocated.
(2) Eliminations or Unallocated also includes income and expense that are not
allocated to reportable operating segments.
(3) Unallocated common assets included in the column of Eliminations or
Unallocated at June 30, 2003 and 2002 were Y 964,062 (USD 8,034 million) and Y
949,648 million, respectively. The assets mainly consist of cash, time deposits
and securities for financial activities.
(4) Certain restatements for the three months ended June 30, 2002 have been made
mainly to conform to SFAS No. 142, Goodwill and other intangible assets. See
Note 1 of "STATEMENTS OF CONSOLIDATED INCOME".
(5) As of April 1, 2003, the companies reclassified certain business group. The
IT & Electronics Group was disbanded as follows: The IT & Electronics Business
Group's Telecommunication & Broadcasting Division was mainly included in the New
Business Initiative Group; The Aerospace Division and the Telecommunication &
Broadcasting Division 's Satellite Communications Business Unit were mainly
included in the Machinery Group.
The consolidated financial position and the results of operations of related
reportable operating segments for the three months ended June 30, 2002 have also
been reclassified accordingly.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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