Hitachi Construction Machinery Co. Ltd.: Company Profile and SWOT Analysis - PDF by WMIntelligence

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									Hitachi Construction Machinery Co. Ltd.

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Hitachi Construction Machinery Co.                                               Financial Snapshot

Ltd.                                                                             Operating Performance

Fast Facts                                                                       The company reported revenue of US$8,809.85
                                                                                 million during the fiscal year 2011 (2011). The
                                                                                 company's revenue grew at a CAGR of 8.22% during
Headquarters Address                   2-5-1 Koraku, Bunkyo-ku, 112-8563,Japan
                                                                                 2007–2011, with an annual growth of 27.73% over
                                                                                 2010. In 2011, the company recorded an operating
Telephone                              + 81 3 38308064
                                                                                 margin of 4.57%, as against 2.94% in 2010.
Fax                                    N/A
                                                                                 Revenue and Margins
Website                                www.hitachi-c-m.com

Ticker Symbol, Stock Exchange          6305, The Tokyo Stock Exchange

Number of Employees                    20,204

Fiscal Year End                        March

Revenue (in US$ million)               8,809.85

Revenue (in JPY million)               773,769.00




                                                                                 Return on Equity
SWOT Analysis                                                                    The company recorded a return on equity (ROE) of
                                                                                 3.61% for 2011, as compared to its peers, Komatsu
Strengths                              Weaknesses                                Ltd. (Ticker: 6301), KATO WORKS CO., LTD. (Ticker:
                                                                                 6390) and Tadano Ltd. (Ticker: 6395), which recorded
Diversified geographic presence        Limited solvency position                 ROEs of 16.32%, 4.21% and -8.96% respectively.
                                                                                 The company reported an operating margin of 4.57%
Strategic partnerships and corporate                                             in 2011.
                                       Weak operating performance
restructuring
                                                                                 Return on Equity
Strong liquidity position

Opportunities                          Threats
Demand for hydraulic excavators and
                                       Natural calamity prone region
crawler cranes

Rapid urbanization in China            Shortage of skilled personnel

Trans-European network transport
                                       Slow growth of Japanese economy
scheme




                                                                                 Liquidity Position

                                                                                 The company reported a current ratio of 1.66 in 2011,
                                                                                 as compared to its peers, Komatsu Ltd., KATO
                                                                                 WORKS CO., LTD. and Tadano Ltd., which recorded
                                                                                 current ratios of 1.56, 1.98 and 3.21 respectively. As
                                                                                 of March 2011, the company recorded cash and
                                                                                 short-term investments of worth US$770.24 million,
                                                                                 against US$2.39 million current debt. The company
                                                                                 reported a debt to equity ratio of 1.10 in 2011 as
                                                                                 compared to its peers, Komatsu Ltd., KATO WORKS
                                                                                 CO., LTD. and Tadano Ltd., which recorded debt to
                                                                                 equity ratios of 0.59, 0.77 and 0.54 respectively.




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Hitachi Construction Machinery Co. Ltd. - SWOT Profile                                                                   Page 1
Hitachi Construction Machinery Co. Ltd.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................17
      2.3.2       Efficiency ..........................................................................................................................................................18
      2.3.3       Capital Expenditure..........................................................................................................................................19
      2.3.4       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.5       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partnerships Strategy ...........................................................................................................................22
4     Recent Developments ........................................................................................................................... 24
5     SWOT Analysis ...................................................................................................................................... 25
    5.1       SWOT Analysis - Overview ..................................................................................................................................25
    5.2       Strengths ..............................................................................................................................................................25
    5.3       Weaknesses .........................................................................................................................................................25
    5.4       Opportunities ........................................................................................................................................................26
    5.5       Threats .................................................................................................................................................................26
6     Company Statement .............................................................................................................................. 28
7     History .................................................................................................................................................... 29
8     Key Employees ...................................................................................................................................... 32
9     Locations and Subsidiaries .................................................................................................................. 33
    9.1       Head Office ..........................................................................................................................................................33
    9.2       Other Locations and Subsidiaries ........................................................................................................................33
10    Appendix ................................................................................................................................................ 34
    10.1      Methodology .............................................................................................................................
								
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