FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Consolidated Financial Results for the Three-Month Period Ended
June 30, 2006
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of July 31, 2006
Commission File Number 09929
Mitsui & Co., Ltd.
(Translation of registrants 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 registrants home country), or under the rules of the home country exchange on which the registrants 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 registrants 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-
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 31, 2006
MITSUI & CO., LTD. | ||
By: | /s/ Kazuya Imai | |
Name: | Kazuya Imai | |
Title: | Executive Director | |
Senior Executive Managing Officer | ||
Chief Financial Officer |
Consolidated Financial Results for the Three-Month Period Ended June 30, 2006
[Based on accounting principles generally accepted in the United States of America (U.S. GAAP)]
Tokyo, July 31, 2006 - Mitsui & Co., Ltd. announced its consolidated financial results for the Three-month period ended June 30, 2006.
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 81-3-3285-7533
1. Basic Information on Quarterly Financial Statements
(1) | The adoption of compendium method in accounting procedure | : None | ||
(2) | Changes of accounting principles applied from the previous fiscal year | : None | ||
(3) | Changes of scope of group companies from the previous fiscal year | : Yes | ||
Number of consolidated subsidiaries and associated companies accounted for by the equity method | ||||
Consolidated subsidiaries : 312, Associated companies accounted for by the equity method : 179 | ||||
(Reference) March 31, 2006 |
||||
Consolidated subsidiaries : 314, Associated companies accounted for by the equity method : 192 |
Notes:
Starting from the three-month period ended June 30, 2006, the companies changed the manner of presenting the number of subsidiaries and associated companies, where those owned by Mitsuis trading subsidiaries in the overseas business units such as Mitsui & Co. (U.S.A.), Inc. are not accounted for as individual companies.
Accordingly, Number of consolidated subsidiaries and associated companies accounted for by the equity method for the year ended March 31, 2006 has been restated.
2. Consolidated financial results(Unaudited)
(1) Consolidated operating results information for the three-month period ended June 30, 2006
(from April 1, 2006 to June 30, 2006)
Revenues | Income from continuing operations before income taxes, minority interests and equity in earnings |
Net income | Total trading transactions | |||||||||||||
Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | |||||||||
Three-month period ended June 30, 2006 | 1,133,153 | 21.5 | 85,431 | 18.3 | 82,253 | 70.4 | 3,720,444 | 7.3 | ||||||||
Three-month period ended June 30, 2005 | 932,560 | 6.8 | 72,228 | 20.8 | 48,262 | 21.6 | 3,468,356 | 8.1 | ||||||||
Year ended March 31, 2006 |
4,115,478 | 253,182 | 202,409 | 14,885,728 | ||||||||||||
Net income per share, basic |
Net income per share, diluted | |||
Yen | Yen | |||
Three-month period ended June 30, 2006 |
47.74 | 45.10 | ||
Three-month period ended June 30, 2005 |
30.50 | 28.69 | ||
Year ended March 31, 2006 |
126.26 | 118.85 | ||
(2) Consolidated financial position information
Total assets | Shareholders equity |
Shareholders equity ratio |
Shareholders equity per share | |||||
Millions of Yen | Millions of Yen | % | Yen | |||||
June 30, 2006 |
8,958,666 | 1,705,049 | 19.0 | 989.63 | ||||
June 30, 2005 |
7,690,557 | 1,178,613 | 15.3 | 744.93 | ||||
March 31, 2006 |
8,573,578 | 1,677,907 | 19.6 | 973.85 | ||||
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Notes:
1. | Percentage figures for Revenues, Income from continuing operations before income taxes, minority interests and equity in earnings, Net income, and Total trading transactions for the three-month period represent changes from the corresponding period of the previous year. |
2. | Parentheses represent negative figures or decreases. |
3. | Total trading transactions is a voluntary disclosure and represents the gross transaction volume or the nominal aggregate value of the sales contracts in which Mitsui & Co., Ltd. and its subsidiaries (collectively, 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.
4. | 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, 2005 relating to discontinued operations have been reclassified. |
A Cautionary Note on Forward-Looking Statements:
This report contains statements (including figures) regarding Mitsui & Co., Ltd. (Mitsui)s corporate strategies, objectives, and 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 Mitsuis 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) changes 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 Mitsuis 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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Summary of Operating Results
Gross Profit
| Gross profit for the 3 months period ended June 2006 was ¥214.8 billion, an increase by ¥24.9 billion compared to the corresponding period in the previous fiscal year. In general each operating segment showed steady performance. The major factors are set forth as below: |
Ø | Reflecting higher prices of iron ore and crude oil, the Iron & Steel Raw Materials and Non-Ferrous Metals Segment and the Energy Segment reported increases of ¥3.7 billion and ¥4.6 billion, respectively. |
Ø | The Logistics & Financial Markets Segment reported an increase of ¥7.5 billion due to strong performance in trading operations of energy derivatives, precious metals and foreign exchange. |
Ø | The Machinery & Infrastructure Projects Segment reported an increase of ¥4.4 billion principally attributable to overseas automobile-related subsidiaries such as P. T. Bussan Auto Finance. |
Ø | The Iron & Steel Products Segment and the Chemical Segment reported slight decreases from the corresponding period in the previous year when the market conditions were more favorable, but continuously showed steady performance in gross profit. |
Other Expenses
| Total other expenses was ¥129.4 billion, an increase by ¥11.7 billion compared to the corresponding period in the previous fiscal year. The main factors were as follows: |
Ø | Selling, general and administrative expenses increased by ¥12.6 billion to ¥140.3 billion, reflecting expanding operations of subsidiaries mainly in the Machinery & Infrastructure Projects Segment and increases in performance-linked bonuses to traders. |
Ø | Interest expense, net of interest income increased by ¥2.5 billion to ¥7.4 billion, due to increase in interest-bearing debt associated with increases in investments in mineral resources and energy related projects such as the Sakhalin II Project as well as rise in U. S. dollar interest rates. |
Ø | Dividend income increased by ¥4.9 billion to ¥16.5 billion. Dividends from LNG projects in the Middle East increased by ¥4.6 billion. |
Equity in Earnings of Associated Companies-Net (After Income Tax Effect)
| Equity in earnings of associated companies-net (after income tax effect) increased by ¥17.7 billion to ¥36.6 billion. The main reasons were as follows: |
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Ø | In the Iron & Steel Raw Materials and Non-Ferrous Metals Segment, earnings increased by ¥10.6 billion, mainly at Valepar S. A., the holding company of Companhia Vale do Rio Doce (CVRD); Robe River Mining Company Pty. Ltd., an iron ore mining company; and Companhia Minera Dona Ines de Collahuasi SCM, a copper mine joint venture. |
Ø | In the Energy Segment, earnings increased by ¥3.3 billion, mainly at Mitsui Oil Exploration Co., Ltd. and Japan Australia LNG (MIMI) Pty. Ltd, reflecting rise in oil prices. |
Ø | The Machinery & Infrastructure Projects Segment reported an increase of ¥2.6 billion, mainly due to expansion of business operations at IPM Eagle LLP which is engaged in overseas power generation businesses. |
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Statements of Consolidated Income
(for the three-month period ended June 30, 2006 and 2005)
(Unaudited)
(Millions of Yen)
Three-month period ended June 30, 2006 |
Three-month period ended June 30, 2005 As restated |
Comparison with previous period | ||||||||||||
Increase/(Decrease) | ||||||||||||||
Amount | % | |||||||||||||
Revenues |
¥ | 1,133,153 | ¥ | 932,560 | ¥ | 200,593 | 21.5 | |||||||
Cost of Revenues |
(918,344 | ) | (742,616 | ) | (175,728 | ) | ||||||||
Gross Profit |
214,809 | 189,944 | 24,865 | 13.1 | ||||||||||
Other Expenses (Income) : |
||||||||||||||
Selling, general and administrative |
140,309 | 127,744 | 12,565 | |||||||||||
Provision for doubtful receivables |
1,246 | 6 | 1,240 | |||||||||||
Interest expense, net of interest income |
7,393 | 4,936 | 2,457 | |||||||||||
Dividend income |
(16,504 | ) | (11,635 | ) | (4,869 | ) | ||||||||
Gain on sales of securities - net |
(5,216 | ) | (5,897 | ) | 681 | |||||||||
Loss on write-down of securities |
810 | 1,671 | (861 | ) | ||||||||||
Gain on disposal or sales of property and equipment - net |
(479 | ) | (198 | ) | (281 | ) | ||||||||
Impairment loss of long-lived assets |
384 | 986 | (602 | ) | ||||||||||
Other expense net |
1,435 | 103 | 1,332 | |||||||||||
Total other expenses |
129,378 | 117,716 | 11,662 | |||||||||||
Income from Continuing Operations before Income Taxes, Minority Interests and Equity in Earnings |
85,431 | 72,228 | 13,203 | 18.3 | ||||||||||
Income Taxes |
33,149 | 38,399 | (5,250 | ) | ||||||||||
Income from Continuing Operations before Minority Interests and Equity in Earnings |
52,282 | 33,829 | 18,453 | 54.5 | ||||||||||
Minority Interests in Earnings of Subsidiaries |
(6,643 | ) | (4,976 | ) | (1,667 | ) | ||||||||
Equity in Earnings of Associated Companies - Net (After Income Tax Effect) |
36,614 | 18,873 | 17,741 | |||||||||||
Income from Continuing Operations |
82,253 | 47,726 | 34,527 | 72.3 | ||||||||||
Income from Discontinued Operations - Net (After Income Tax Effect) |
| 536 | (536 | ) | ||||||||||
Net Income |
¥ | 82,253 | ¥ | 48,262 | ¥ | 33,991 | 70.4 | |||||||
Summary of Changes in Equity from Nonowner Sources (Comprehensive Income (Loss)): |
||||||||||||||
Net income |
¥ | 82,253 | ¥ | 48,262 | ¥ | 33,991 | ||||||||
Other comprehensive income (loss) (after income tax effect): |
||||||||||||||
Unrealized holding gains (losses) on available-for-sale securities |
(35,977 | ) | 944 | (36,921 | ) | |||||||||
Foreign currency translation and other adjustments |
5,090 | 22,439 | (17,349 | ) | ||||||||||
Changes in equity from nonowner sources |
¥ | 51,366 | ¥ | 71,645 | ¥ | (20,279 | ) | |||||||
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Condensed Consolidated Balance Sheets
(Unaudited)
(Millions of Yen)
June 30, 2006 |
March 31, 2006 |
Increase/ (Decrease) |
||||||||||
ASSETS |
||||||||||||
Current Assets: |
||||||||||||
Cash and marketable securities |
¥ | 841,589 | ¥ | 760,953 | ¥ | 80,636 | ||||||
Trade receivables, less allowance for doubtful receivables |
2,675,611 | 2,579,286 | 96,325 | |||||||||
Inventories |
685,486 | 695,754 | (10,268 | ) | ||||||||
Other current assets |
765,141 | 710,838 | 54,303 | |||||||||
Total current assets |
4,967,827 | 4,746,831 | 220,996 | |||||||||
Investments and Non-current Receivables: |
||||||||||||
Investments in and advances to associated companies and other investments |
2,279,821 | 2,236,262 | 43,559 | |||||||||
Non-current receivables, less allowance for doubtful receivables, and property leased to others |
609,688 | 578,557 | 31,131 | |||||||||
Total investments and other non-current receivables |
2,889,509 | 2,814,819 | 74,690 | |||||||||
Property and Equipment, less Accumulated Depreciation |
834,105 | 746,169 | 87,936 | |||||||||
Other Assets |
267,225 | 265,759 | 1,466 | |||||||||
Total |
¥ | 8,958,666 | ¥ | 8,573,578 | ¥ | 385,088 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||
Current Liabilities: |
||||||||||||
Short-term debt and current maturities of long-term debt |
¥ | 1,166,645 | ¥ | 893,982 | ¥ | 272,663 | ||||||
Trade payables |
2,040,349 | 1,970,878 | 69,471 | |||||||||
Other current liabilities |
689,142 | 646,081 | 43,061 | |||||||||
Total current liabilities |
3,896,136 | 3,510,941 | 385,195 | |||||||||
Long-term Debt, less Current Maturities |
2,875,045 | 2,910,890 | (35,845 | ) | ||||||||
Other Liabilities |
345,100 | 355,680 | (10,580 | ) | ||||||||
Minority Interests |
137,336 | 118,160 | 19,176 | |||||||||
Shareholders Equity: |
||||||||||||
Common stock |
295,784 | 295,766 | 18 | |||||||||
Capital surplus |
390,510 | 390,488 | 22 | |||||||||
Retained earnings: |
||||||||||||
Appropriated for legal reserve |
38,797 | 38,508 | 289 | |||||||||
Unappropriated |
883,147 | 825,306 | 57,841 | |||||||||
Accumulated other comprehensive income (loss): |
||||||||||||
Unrealized holding gains and losses on available- for-sale securities |
180,122 | 216,099 | (35,977 | ) | ||||||||
Foreign currency translation and other adjustments |
(81,167 | ) | (86,257 | ) | 5,090 | |||||||
Total accumulated other comprehensive loss |
98,955 | 129,842 | (30,887 | ) | ||||||||
Treasury stock, at cost |
(2,144 | ) | (2,003 | ) | (141 | ) | ||||||
Total shareholders equity |
1,705,049 | 1,677,907 | 27,142 | |||||||||
Total |
¥ | 8,958,666 | ¥ | 8,573,578 | ¥ | 385,088 | ||||||
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Operating Segment Information
(Unaudited)
Three-month period ended June 30, 2006 (from April 1, 2006 to June 30, 2006)
(Millions of Yen)
Iron & Steel Products |
Iron & Steel Raw Materials and Non-Ferrous Metals |
Machinery & Infrastructure Projects |
Chemical | Energy | Foods & Retail | Lifestyle, Consumer Service and Information Electronics & Telecommunication |
Logistics & Financial Markets | |||||||||||
Total Trading Transactions |
332,969 | 411,579 | 494,020 | 548,994 | 492,950 | 467,383 | 374,892 | 50,667 | ||||||||||
Gross Profit |
13,636 | 32,163 | 24,429 | 25,444 | 21,747 | 19,874 | 29,190 | 17,135 | ||||||||||
Operating Income (Loss) |
5,997 | 26,124 | 4,605 | 8,829 | 13,684 | 3,366 | 2,571 | 7,785 | ||||||||||
Equity in Earnings of Associated Companies |
528 | 16,423 | 6,423 | 1,287 | 8,662 | 609 | 1,416 | 516 | ||||||||||
Net Income |
4,420 | 31,733 | 9,684 | 4,459 | 19,114 | 2,684 | 2,280 | 4,087 | ||||||||||
Total Assets at June 30, 2006 |
565,594 | 893,471 | 1,377,082 | 854,454 | 1,303,574 | 698,847 | 777,596 | 791,406 | ||||||||||
Americas | Europe | Asia | Other Overseas Areas |
Total | All Other | Adjustments and Eliminations |
Consolidated Total | |||||||||||
Total Trading Transactions |
284,450 | 115,948 | 128,330 | 16,031 | 3,718,213 | 2,231 | 0 | 3,720,444 | ||||||||||
Gross Profit |
14,993 | 5,032 | 6,453 | 1,140 | 211,236 | 2,013 | 1,560 | 214,809 | ||||||||||
Operating Income (Loss) |
5,100 | 387 | 2,589 | 32 | 81,069 | (778 | ) | (7,037 | ) | 73,254 | ||||||||
Equity in Earnings of Associated Companies |
567 | 89 | 31 | 121 | 36,672 | 33 | (91 | ) | 36,614 | |||||||||
Net Income |
4,071 | 1,058 | 2,416 | 3,707 | 89,713 | 2,283 | (9,743 | ) | 82,253 | |||||||||
Total Assets at June 30, 2006 |
449,969 | 148,072 | 179,766 | 93,360 | 8,133,191 | 2,832,512 | (2,007,037 | ) | 8,958,666 | |||||||||
Three-monthperiod ended June 30, 2005 (from April 1, 2005 to June 30, 2005) (As restated) | ||||||||||||||||||
(Millions of Yen)
| ||||||||||||||||||
Iron & Steel Products |
Iron & Steel Raw Materials and |
Machinery & Infrastructure Projects |
Chemical | Energy | Foods & Retail | Lifestyle, Consumer Service and Information Electronics & Telecommunication |
Logistics & Financial Markets | |||||||||||
Total Trading Transactions |
352,704 | 445,118 | 507,248 | 493,860 | 362,275 | 442,995 | 320,642 | 19,352 | ||||||||||
Gross Profit |
14,768 | 28,542 | 20,004 | 25,654 | 17,134 | 19,670 | 29,527 | 9,637 | ||||||||||
Operating Income (Loss) |
8,114 | 23,315 | 4,145 | 9,803 | 7,755 | 2,341 | 3,623 | 3,293 | ||||||||||
Equity in Earnings of Associated Companies |
967 | 5,785 | 3,868 | 1,652 | 5,392 | 637 | (325 | ) | 834 | |||||||||
Net Income |
6,344 | 13,147 | 7,030 | 5,797 | 9,593 | 504 | 3,432 | 2,597 | ||||||||||
Total Assets at June 30, 2005 |
550,004 | 763,296 | 1,056,765 | 789,172 | 936,634 | 654,523 | 729,667 | 426,927 | ||||||||||
Americas | Europe | Asia | Other Overseas Areas |
Total | All Other | Adjustments and Eliminations |
Consolidated Total | |||||||||||
Total Trading Transactions |
256,072 | 92,326 | 154,283 | 23,461 | 3,470,336 | 2,083 | (4,063 | ) | 3,468,356 | |||||||||
Gross Profit |
13,802 | 5,400 | 5,876 | 1,067 | 191,081 | 1,940 | (3,077 | ) | 189,944 | |||||||||
Operating Income (Loss) |
5,305 | 1,527 | 2,438 | 133 | 71,792 | (732 | ) | (8,866 | ) | 62,194 | ||||||||
Equity in Earnings of Associated Companies |
431 | 21 | 23 | 78 | 19,363 | 25 | (515 | ) | 18,873 | |||||||||
Net Income |
3,876 | 1,783 | 2,136 | 2,841 | 59,080 | 1,052 | (11,870 | ) | 48,262 | |||||||||
Total Assets at June 30, 2005 |
479,844 | 344,993 | 179,860 | 78,343 | 6,990,028 | 2,412,876 | (1,712,347 | ) | 7,690,557 | |||||||||
Notes: | 1. | In accordance with SFAS No.144, the figures of Consolidated Total for the three-month period ended June 30, 2005 have been reclassified. The reclassifications to Income (Loss) from Discontinued OperationsNet (After Income Tax Effect) are included in Adjustments and Eliminations. | ||
2. | All Other includes business activities which primarily provide services, such as financing service and operation services to external customers and/or to the companies and associated companies. Total assets of All Other at June 30, 2006 and 2005 consisted primarily of cash and cash equivalents and time deposits related to financing activities, and assets of certain subsidiaries related to the above services. | |||
3. | Net loss of Adjustments and Eliminations includes income and expense items that are not allocated to specific reportable operating segments, such as certain expenses of the corporate departments, and eliminations of intersegment transactions. | |||
4. | Transfers between operating segments are made at cost plus a markup. | |||
5. | Operating Income (Loss) reflects the companies a) Gross Profit, b) Selling, general and administrative expenses, and c) Provision for doubtful receivables. | |||
6. | Starting from the year ended March 31, 2006, Iron & Steel Products and Iron & Steel Raw Materials and Non-Ferrous Metals which formerly composed the Metal Products & Minerals, and Foods & Retail, which was formerly included in Consumer Products & Services are disclosed as a separate product- focused reportable operating segment, and Electronics & Information, which was formerly included in the Machinery, Electronics & Information is aggregated to Life Style and Consumer Service, which were formerly included in Consumer Products & Services and disclosed as Life Style, Consumer Service and Information, Electronics & Telecommunication. Machinery and Infrastracture Projects, which were formerly included in Machinery, Electronics & Information, are disclosed as Machinery & Infrastracture Projects. The operating segment information for the three-month period ended June 30, 2005 has been restated to conform to the current period presentation. |
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