MIRA INFORM REPORT

 

 

Report Date :

07.04.2007

 

IDENTIFICATION DETAILS

 

Name :

CENTRAL GLASS CO LTD

 

 

Registered Office :

Kowa Hitotsubashi Bldg, 3-7-1 Kanda-Nishikicho Chiyodaku Tokyo 101-0054

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

Oct 1936

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturing of sheet glass, chemicals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 5833.6 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

CENTRAL GLASS CO LTD

 

 

REGD NAME

 

Central Garasu KK

 

 

MAIN OFFICE

 

Kowa Hitotsubashi Bldg, 3-7-1 Kanda-Nishikicho Chiyodaku Tokyo 101-0054 JAPAN

Tel: 03-3259-7111

Fax: 03-3259-7394

URL: http://www.cgco.co.jp/

E-Mail address: gad@cgco.co.jp

 

 

ACTIVITIES

 

Mfg of sheet glass, chemicals

 

 

BRANCHES

 

Nagoya, Fukuoka, Sendai, Kawagoe, Kawasaki

 

 

OVERSEAS

 

(Subsidiaries & affiliates): USA (3), Taiwan (4), China (2), Korea (2), Vietnam, Thailand (2), UK (2)

 

 

FACTORY(IES)

 

Ube, Sakai, Matsuzaka, Kawasaki

 

 

CHIEF EXEC

 

SADAYOSHI NAKAMURA, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 196,651 M

PAYMENTS      REGULAR                     CAPITAL           Yen 18,168 M

TREND             STEADY                       WORTH            Yen 124,255 M

STARTED         1936                             EMPLOYES      4,576

 

 

COMMENT

 

MFR OF SHEET GLASS & CHEMICALS.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 5,833.6 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2007 fiscal term

 

 

HIGHLIGHTS

 

The subject company is third largest sheet glass manufacturer.  Originally founded in 1936 as caustic soda maker, but expanded soda-based chemicals to glass products in 1958 by setting up a separate firm (old Central Glass).  Focusing on fine chemicals and new glass for LCD’s and PDPs.. Boasts 20% share of domestic market.  Chemicals are now major earning pillar.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2006 fiscal term amounted to Yen 196,651 million, a 1.3% up from Yen 194,208 million in the previous term.  Chemicals fared well, while construction-use glass and fine glass sales volume dropped and higher materials/fuel costs squeezing profits.  By divisions, glass was down by 3.8% to Yen 116,622 million, as glass for building was hurt by price competition among the trade despite demand increasing for heat-resisting glass and glass for security, while glass for automotives was steady.  Chemicals up by 9.7% to Yen 80,029 million.  The recurring profit was posted at Yen 18,918 million and the net profit at Yen 10,630 million, respectively, compared with Yen 18,795 million recurring profit and Yen 11,614 million net profit, respectively, a year ago.

           

For the term just ended Mar 2007 the recurring profit is projected at Yen 17,500 million and the net profit at Yen 18,500 million, on a 1.9% fall in turnover, to Yen 193,000 million.  Glass continued weak, while chemicals enjoyed profit growth, led by cleaning gas for semiconductor mfg    equipment and pharmaceutical intermediates.

 

(Fourth quarter results ending Dec/2006): sales Yen 142,461 million (down 3.2%), operating profit Yen 12,571 million (down 8.3%), recurring profit Yen 14,188 million (down 2.6%), net profit Yen 9,300 million (up 18.1%).  (% compared with the same period the last year).

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 5,833.6 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:            Oct 1936

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    867,944,000 shares

Issued:                          214,879,975 shares

Sum:                            Yen 18,168 million

Major shareholders (%): Japan Trustee Services Bank T (6.2), Master Trust Bank of Japan T (5.4), TCSB (Mizuho Corporate Bank) (3.8), TCSB (Yamaguchi Bank) (2.0), Mitsui Sumitomo Ins (1.7), State Street Bank & Trust (1.6), SMBC (1.5), JTSB (Chuo Mitsui Trust &    Banking) (1.4), Nippon Life Ins (1.4), Mitsui Life Ins 81.2); foreign owners (25.5)

No. of shareholders:       12,143

Listed on the S/Exchange (s) of: Tokyo, Osaka

Managements: Sadayoshi Nakamura, pres & CEO; Hiroshi Kawakami, v pres; Seiichi Mitsumoto, rep dir; Arao Abe, dir; Takashi Tamura, dir; Yutaka Shijimikawa, dir; Kenji Kaneko, dir; Yoichi Kumagai, dir; Yoichi Kageyama, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

 

Related companies

 

Central Kasei, Central Glass Fiber, other (Tot 39 as of Mar/06)

           

 

OPERATION

           

Activities: Manufactures sheet glass (59%); chemicals (41%).

 

Overseas sales ratio 23.1%: N America 11.5%; Asia 5.8%; Europe 5.2%; other 0.6%.

 

(Handling items)

 

Glass Business: Architectural glass (flat glass); Automotive glass (water repellent glass, privacy protection glass, laminated glass, tempered glass); Decorative glass (glass for shopping interior, reflective glass); Structural glazing system (Quattro point system); Fine glass (chromium coated glass, glass with a transparency electric conductive film, optical mirror, chemical tempered glass, high strain point glass for PDP);

 

Chemical Business: Inorganic chemicals (soda industrial products, inorganic industrial products); organic chemicals (blowing agent for rigid polyurethane foam); Fertilizer (controlled – release fertilizer, compound fertilizer); Glass fiber (glass fiber, glass wool, ingredients & intermediates, special solvents, microbial materials, others)

           

Clients: [Mfrs, wholesalers] Soda Nikka, Tosho Central, Centrex Tokai, other.

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Central Glass Fiber, Ube Trading, Zen-Noh, Central Glass Wool, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

 

Bank References

 

Mizuho Corporate Bank (H/O)

Norin Chukin Bank (H/O)

 

Relations: Satisfactory

 

 

FINANCES

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

196,651

194,208

 

  Cost of Sales

139,177

134,718

 

      GROSS PROFIT

57,474

59,490

 

  Selling & Adm Costs

39,767

40,180

 

      OPERATING PROFIT

17,707

19,310

 

  Non-Operating P/L

1,211

-515

 

      RECURRING PROFIT

18,918

18,795

　

      NET PROFIT

10,630

11,614

BALANCE SHEET

 

 

 

 

  Cash

　

11,244

14,707

 

  Receivables

 

50,100

51,980

 

  Inventory

 

29,320

24,838

 

  Securities, Marketable

　

　

 

  Other Current Assets

3,702

3,633

 

      TOTAL CURRENT ASSETS

94,366

95,158

 

  Property & Equipment

94,189

88,842

 

  Intangibles

 

2,778

1,697

 

  Investments, Other Fixed Assets

55,705

45,867

 

      TOTAL ASSETS

247,038

231,564

 

  Payables

 

22,817

22,997

 

  Short-Term Bank Loans

19,321

23,182

 

　

 

　

　

 

  Other Current Liabs

23,487

26,135

 

      TOTAL CURRENT LIABS

65,625

72,314

 

  Debentures

 

20,400

20,400

 

  Long-Term Bank Loans

8,239

5,186

 

  Reserve for Retirement Allw

12,831

13,568

 

  Other Debts

　

15,164

10,687

 

      TOTAL LIABILITIES

122,259

122,155

 

      MINORITY INTERESTS

523

243

 

Common stock

18,168

18,168

 

Additional paid-in capital

8,118

8,118

 

Retained earnings

82,048

73,613

 

Evaluation p/l on investments/securities

17,236

11,546

 

Others

 

(1,065)

(2,060)

 

Treasury stock, at cost

(250)

(220)

 

      TOTAL S/HOLDERS` EQUITY

124,255

109,165

　

      TOTAL EQUITIES

247,038

231,564

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

17,184

21,514

 

Cash Flows from Investment Activities

-17,412

-13,606

 

Cash Flows from Financing Activities

-3,526

-8,231

　

Cash, Bank Deposits at the Term End

　

11,121

14,892

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

124,255

109,165

 

 

Current Ratio (%)

143.80

131.59

 

 

Net Worth Ratio (%)

50.30

47.14

 

 

Recurring Profit Ratio (%)

9.62

9.68

 

 

Net Profit Ratio (%)

5.41

5.98

 

 

Return On Equity (%)

8.55

10.64

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions