Form 6-K

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 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-            

 



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 Mitsui’s 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
                   

 

— 1 —


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 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) 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 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.

 

— 2 —


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:

 

— 3 —


  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.

 

— 4 —


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 )  
                          

 

— 5 —


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  
                        

 

— 6 —


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
Non-Ferrous
Metals

  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 Operations—Net (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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