Investor view on Mitsubishi

Investor view on Mitsubishi
Published: 13 January 2005

Moody’s Investors Service has upgraded the senior unsecured long-term debt ratings of Mitsubishi Materials Corporation (Mitsubishi Materials). The rating outlook is stable.  Mitsubishi Materials’ profitability has improved as a result of extensive operational rationalization over the past several years. The company clarified its focus on its four core businesses of copper, aluminum products, cement and fabricated metal components and tools.

Moody’s expects that Mitsubishi Materials will be able to generate solid cash flow from its diversified business portfolio over the medium term, benefiting from the above reforms as well as strong demand in some of its core businesses. Those include hard-metal tools and metal components for automobiles, machinery and electronic devices; aluminum bottles; cement products in the United States; and copper in Southeast Asia and China. The company faces a weak demand and pricing environment in the domestic cement market, but disciplined capital investment is allowing the segment to generate substantial cash flow.