Edgar Filing: MITSUI & CO LTD

MITSUI & CO., LTD.

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Consolidated Financial Results for the First Quarter Ended June 30, 2004

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of July 30, 2004

Commission File Number 09929

Mitsui & Co., Ltd.

(Translation of registrant’s name into English)

2-1, Ohtemachi 1-chome
Chiyoda-ku, Tokyo 100-0004
Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

TABLE OF CONTENTS


Signatures
Consolidated Financial Results for the First Quarter Ended June 30, 2004
Statements of Consolidated Income
Condensed Consolidated Balance Sheets
Operating Segment Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 30, 2004


	MITSUI & CO., LTD.
	By:	/s/ Tasuku Kondo
	Name:	Tasuku Kondo
	Title:	Executive Director Executive Vice President Chief Financial Officer

Consolidated Financial Results for the First Quarter Ended June 30, 2004
(Accounting Principles Generally Accepted in the United States of America)
(Unaudited)

Mitsui & Co., Ltd. and Subsidiaries
(Web Site : http://www.mitsui.co.jp)

President and Chief Executive Officer, Shoei Utsuda
Investor Relations Contacts: Satoshi Tanaka, General Manager, Investor Relations Division TEL (03) 3285-7533

Financial Highlights for the First Quarter Ended June 30, 2004
(from April 1, 2004 to June 30, 2004)


					(Reference)
							(Millions of yen)

							Forecast for the fiscal
							year ending March 31,
	Three-month period		Three-month period				2005
	ended June 30, 2004		ended June 30, 2003		Increase/(Decrease)		(based on the previous release on May 11, 2004)

Revenues		876,598		697,103		179,495
Gross Profit		167,090		141,323		25,767
Income from Continuing Operations before Income Taxes, Minority Interests and Equity in Earnings		60,613		29,920		30,693
Net Income		39,677		19,076		20,601		80,000

Total Trading Transactions		3,212,584		2,827,307		385,277		12,000,000



	June 30, 2004			March 31, 2004			Increase/(Decrease)

Total Assets		6,730,421			6,716,028			14,393
Shareholders’ Equity		988,227			963,278			24,949
Shareholders’ Equity Ratio		14.7	%		14.3	%	0.4		pt
Net Interest-bearing Debt (after deduction of cash and cash equivalents)		2,711,350			2,675,539			35,811
Debt to Equity Ratio (net)		2.74			2.78		0.04		pt
Current Ratio		134.4	%		129.7	%	4.7		pt


Notes:	1.	During the year ended March 31, 2004, the revenue presentation was changed in the Statements of Consolidated Income in a manner consistent with the accounting guidance in Financial Accounting Standards Board (“FASB”) Emerging Issues Task Force Issue (“EITF”) No.99-19, “Reporting Revenue Gross as a Principal versus Net as an Agent .” The figures in the Statements of Consolidated Income for the three-month period ended June 30, 2003 have been restated to conform to the current period presentation.
	2.	In accordance with Statement of Financial Accounting Standards (“SFAS”) No.144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the figures for the three-month period ended June 30, 2003 relating to discontinued operations have been reclassified.
	3.	Effective April 1, 2003, Mitsui & Co., Ltd. and its subsidiaries (the “companies”) adopted SFAS No.143, “Accounting for Asset Retirement Obligations ,” and the cumulative effect adjustment upon the adoption is separately presented on a net-of-tax basis in the Statements of Consolidated Income.
	4.	Number of consolidated subsidiaries and associated companies accounted for by the equity method Consolidated subsidiaries : 424, Associated companies accounted for by the equity method : 314
	5.	Total trading transactions is a voluntary disclosure and represents the gross transaction volume or the nominal aggregate value of the sales contracts in which the companies act as principal and transactions in which the companies serve as agent.
		Total trading transactions is not meant to represent sales or revenues in accordance with U.S.GAAP.
		The companies have included the information concerning total trading transactions because it is used by similar Japanese trading companies as an industry benchmark, and the companies believe it is a useful supplement to results of operations data as a measure of the companies’ performance compared to other similar Japanese trading companies. Total trading transactions is included in the measure of segment profit and loss reviewed by the chief operating decision maker.
	6.	In consideration of a consensus relating to the presentation of gains and losses on derivative instruments held for trading purposes by the EITF under U.S.GAAP, all gains and losses on forward contracts held by certain foreign subsidiaries for trading purposes for crude oil and oil products, which are also derivatives, are shown net in Total trading transactions effective during the year ended March 31, 2004. In relation to this change, the figures for the three-month period ended June 30, 2003 have been restated.

A Cautionary Note on Forward-Looking Statements:

This report contains statements (including figures) regarding Mitsui & Co., Ltd. (“Mitsui”)’s views of future developments that are forward-looking in nature and are not simply reiterations of historical facts. These statements are presented to inform stakeholders of the views of Mitsui’s management but should not be relied on solely in making investment and other decisions. You should be aware that a number of important risk factors could lead to outcomes that differ materially from those presented in such forward-looking statements. These include, but are not limited to, (i) change in economic conditions that may lead to unforeseen developments in markets for products handled by Mitsui, (ii) fluctuations in currency exchange rates that may cause unexpected deterioration in the value of transactions, (iii) adverse political developments that may create unavoidable delays or postponement of transactions and projects, (iv) changes in laws, regulations, or policies in any of the countries where Mitsui conducts its operations that may affect Mitsui’s ability to fulfill its commitments, and (v) significant changes in the competitive environment. In the course of its operations, Mitsui adopts measures to control these and other types of risks, but this does not constitute a guarantee that such measures will be effective.

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Statements of Consolidated Income
(for the three-month period ended June 30, 2004 and 2003)
(Unaudited)


(Millions of Yen)
	Three-month period ended June 30,			Three-month period ended June 30,			Comparison with previous period Increase/(Decrease)
	2004			2003			Amount			%

Revenues		876,598			697,103			179,495			25.7
Cost of Revenues		709,508			555,780			153,728

Gross Profit		167,090			141,323			25,767			18.2

Expenses and Other :
Selling, general and administrative		120,118			115,285			4,833
Provision for doubtful receivables		739			2,655			(1,916	)
Interest (income) expense — net		(382	)		(196	)		(186	)
Dividend income		(8,664	)		(7,036	)		(1,628	)
Gain on sales of securities — net		(7,808	)		(782	)		(7,026	)
Loss on write-down of securities		605			1,634			(1,029	)
(Gain) loss on disposal or sales of property and equipment — net		(1,017	)		(271	)		(746	)
Impairment loss of long-lived assets		3,733			52			3,681
Other expense — net		(847	)		62			(909	)

Total		106,477			111,403			(4,926	)

Income from Continuing Operations before Income Taxes, Minority Interests and Equity in Earnings		60,613			29,920			30,693			102.6

Income Taxes:		30,927			13,500			17,427

Income from Continuing Operations before Minority Interests and Equity in Earnings		29,686			16,420			13,266			80.8
Minority Interests in Earnings of Subsidiaries		(3,865	)		(2,139	)		(1,726	)
Equity in Earnings of Associated Companies — Net (After Income Tax Effect)		13,144			8,445			4,699

Income from Continuing Operations		38,965			22,726			16,239			71.5

Income (Loss) from Discontinued Operations — Net (After Income Tax Effect)		712			(1,365	)		2,077
Cumulative Effect of Change in Accounting Principle (After Income Tax Effect)		—			(2,285	)		2,285

Net Income	¥	39,677		¥	19,076		¥	20,601			108.0



Summary of Changes in Equity from Nonowner Sources (Comprehensive Income (Loss)):
Net income	¥	39,677		¥	19,076		¥	20,601

Other comprehensive income (Loss) (After Income Tax Effect):
Unrealized holding gains (losses) on available-for-sale securities		(5,225	)		19,995			(25,220	)
Foreign currency translation and other adjustments		(4,556	)		12,394			(16,950	)

Changes in equity from nonowner sources	¥	29,896		¥	51,465		¥	(21,569	)


Note:		The revenue presentation was changed in the Statements of Consolidated Income in an manner consistent with the accounting guidance in Financial Accounting Standards Board Emerging Issues Task Force Issue No. 99-19, “Reporting Revenue Gross as a Principal versus Net as an Agent.” The prior year figures have been restated to conform to the current year presentation.

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Condensed Consolidated Balance Sheets
(Unaudited)


(Millions of Yen)
	June 30,			March 31,			Increase/
	2004			2004			(Decrease)

ASSETS
Current Assets:
Cash and marketable securities	¥	650,717		¥	714,346		¥	(63,629	)
Trade receivables, less allowance for doubtful receivables		2,371,791			2,338,105			33,686
Inventories		510,597			513,016			(2,419	)
Other current assets		376,971			369,007			7,964

Total current assets		3,910,076			3,934,474			(24,398	)

Investments and Non-current Receivables:
Investments in and advances to associated companies and other investments		1,391,965			1,343,710			48,255
Non-current receivables, less allowance for doubtful receivables, and property leased to others		544,632			605,659			(61,027	)

Total investments and other non-current receivables		1,936,597			1,949,369			(12,772	)

Property and Equipment, less Accumulated Depreciation		573,628			576,822			(3,194	)

Other Assets		310,120			255,363			54,757

Total	¥	6,730,421		¥	6,716,028		¥	14,393

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Short-term debt and current maturities of long-term debt	¥	855,228		¥	1,004,421		¥	(149,193	)
Trade payables		1,700,592			1,668,197			32,395
Other current liabilities		353,295			361,167			(7,872	)

Total current liabilities		2,909,115			3,033,785			(124,670	)

Long-term Debt, less Current Maturities		2,645,504			2,541,221			104,283

Other Liabilities		106,092			99,683			6,409

Minority Interests		81,483			78,061			3,422

Shareholders’ Equity:
Common stock		192,488			192,487			1
Capital surplus		288,031			287,763			268
Retained earnings:
Appropriated for legal reserve		36,738			36,633			105
Unappropriated		582,768			549,521			33,247
Accumulated other comprehensive income (loss):
Unrealized holding gains and losses on available- for-sale securities		64,504			69,729			(5,225	)
Foreign currency translation adjustments and other adjustments		(175,749	)		(171,193	)		(4,556	)

Total accumulated other comprehensive loss		(111,245	)		(101,464	)		(9,781	)

Treasury stock, at cost		(553	)		(1,662	)		1,109

Total shareholders’ equity		988,227			963,278			24,949

Total	¥	6,730,421		¥	6,716,028		¥	14,393

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Operating Segment Information
(Unaudited)

Three-month period ended June 30, 2004 (from April 1, 2004 to June 30, 2004)


(Millions of Yen)
	Metal		Machinery,						Consumer		Logistics &
	Products		Electronics &						Products		Financial
	& Minerals		Information		Chemical		Energy		& Services		Markets

Total Trading Transactions
External customers		622,131		626,840		427,160		300,961		636,968		23,784
Intersegment		60,403		38,104		91,898		27,118		25,202		1,826
Total		682,534		664,944		519,058		328,079		662,170		25,610

Gross Profit		30,684		30,552		16,970		16,750		36,854		10,880

Operating Income (Loss)		17,637		7,232		1,932		8,113		7,788		5,492

Net Income (Loss)		11,856		9,916		977		11,456		4,565		3,718

Total Assets at June 30, 2004		1,075,009		1,176,446		655,114		673,107		1,061,875		326,560



					Other
					Overseas							Adjustments			Consolidated
	Americas		Europe		Areas		Total		All Other			and Eliminations			Total

Total Trading Transactions
External customers		271,956		96,474		200,713		3,206,987		5,563			34			3,212,584
Intersegment		116,095		101,168		235,251		697,065		2,444			(699,509	)		—
Total		388,051		197,642		435,964		3,904,052		8,007			(699,475	)		3,212,584

Gross Profit		12,067		4,587		5,941		165,285		2,428			(623	)		167,090

Operating Income (Loss)		3,599		581		1,823		54,197		(220	)		(7,744	)		46,233

Net Income (Loss)		3,380		1,300		3,226		50,394		638			(11,355	)		39,677

Total Assets at June 30, 2004		399,409		271,162		243,276		5,881,958		2,158,163			(1,309,700	)		6,730,421

Three-month period ended June 30, 2003 (from April 1, 2003 to June 30, 2003)


(Millions of Yen)
	Metal		Machinery,						Consumer		Logistics &
	Products		Electronics &						Products		Financial
	& Minerals		Information		Chemical		Energy		& Services		Markets

Total Trading Transactions
External customers		512,109		542,225		355,293		334,779		608,859		25,196
Intersegment		64,874		35,864		95,222		19,454		27,981		6,429
Total		576,983		578,089		450,515		354,233		636,840		31,625

Gross Profit		18,533		28,124		20,891		13,766		29,494		7,464

Operating Income (Loss)		6,866		2,749		6,875		5,794		3,806		2,232

Net Income (Loss)		5,887		5,278		3,360		6,103		2,143		1,069

Total Assets at June 30, 2003		901,642		1,237,475		587,074		567,389		983,073		272,084



					Other
					Overseas							Adjustments			Consolidated
	Americas		Europe		Areas		Total		All Other			and Eliminations			Total

Total Trading Transactions
External customers		209,532		87,699		147,337		2,823,029		5,092			(814	)		2,827,307
Intersegment		106,730		72,383		192,782		621,719		1,971			(623,690	)		—
Total		316,262		160,082		340,119		3,444,748		7,063			(624,504	)		2,827,307

Gross Profit		10,511		4,640		5,592		139,015		2,092			216			141,323

Operating Income (Loss)		2,113		605		1,657		32,697		(1,014	)		(8,300	)		23,383

Net Income (Loss)		1,559		584		2,560		28,543		1,383			(10,850	)		19,076

Total Assets at June 30, 2003		405,020		245,692		199,775		5,399,224		2,095,069			(982,713	)		6,511,580


Notes:	1.	In accordance with SFAS No.144, the figures of “Consolidated Total” for the three-month period ended June 30, 2003 have been reclassified. The reclassifications to “Income (Loss) from Discontinued Operations—Net (After Income Tax Effect)” are included in “Adjustments and Eliminations.”
	2.	In accordance with a reorganization which was introduced to cover branches and offices within Japan, and a reorganization of business units in the Head Office effective April 1, 2004, the composition of reportable segments has been changed in the three-month period ended June 30, 2004. The operating segment information for the three-month period ended June 30, 2003 has been restated to conform to the current period presentation. The primary changes are as follows:
		(a)	The former “Domestic Branches and Offices” was abolished. The operating results of branches and offices in Japan are included in the related product-focused segments.
		(b)	The businesses related to financial markets or transportation logistics, which were included in “Metal Products & Minerals” or “All Other” are newly aggregated as “Logistics & Financial Markets.”
		(c)	The media-related business oriented to the consumer which was included in “Machinery, Electronics & Information,” has been transferred to “Consumer Products & Services.”
	3.	Operating Income (Loss) reflects the companies’ a) Gross Profit, b) Selling, general and administrative expenses, and c) Provision for doubtful receivables.

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