MIRA
INFORM REPORT
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Report Date : |
03.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
THE LINCOLN ELECTRIC CO (AUSTRALIA) PTY LTD |
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Registered Office : |
38 Bryant St, Padstow, Nsw 2211 |
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Country : |
Australia |
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Date of Incorporation : |
28 July 1938 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing, sales and services of electric welding equipment,
electrodes and wires as well as associated products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow |
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Litigation : |
Exists |
REGISTERED NAME
THE LINCOLN ELECTRIC CO (AUSTRALIA) PTY LTD
ACN
000 040 308
ABN
36 000 040 308
INCORPORATED
28 July 1938
REGISTERED ADDRESS
38 Bryant St
PADSTOW, NSW 2211
SHARECAPITAL
$2,000,000
SHAREHOLDERS
Lincoln Electric International Holdings Holds
2,000,000
DIRECTORS
KIDD, William Gary
45 Bullecourt Ave
ENGADINE, NSW 2233
MCBURNEY, Richard John
18 Francis Oakes Way
WEST PENNANT HILLS, NSW
2125
FLOHN, Thomas Anthony
Resident overseas
STROPKI, John Michael
Resident overseas
HYDE, Stuart Douglas
7 Yates Rd
BANGOR, NSW 2234
SECRETARY
HYDE, Stuart Douglas
7 Yates Rd
BANGOR, NSW 2234
REGISTERED CHARGES
None on record
BUSINESS STRUCTURE
TRADING ADDRESS
35 Bryant St
PADSTOW, NSW 2211
TELEPHONE (612)
9772 7222
FACSIMILE (612)
9772 2420
CONTROLLED ENTITY
THE LINCOLN ELECTRIC COMPANY (NZ) LTD
HOLDING ENTITY
LINCOLN ELECTRIC INTERNATIONAL HOLDINGS
ULTIMATE
HOLDING ENTITY
THE LINCOLN HOLDINGS INC. – USA
BANK
ANZ BANKING GROUP
Branch: Padstow, NSW
EMPLOYEES
320
BACKGROUND
The subject was incorporated in New South Wales on 28 July 1938 under
the current style.
Operations were established as a new venture in Australia In 1938.
The subject is ultimately owned by the Lincoln Electric Holdings Inc. of
the USA, a corporation that has origins that date back to 1895 when John C
Lincoln founded the Group with a capital investment of $200.
OPERATIONS
The subject operates in the manufacturing, sales and services of
electric welding equipment, electrodes and wires as well as associated
products.
Activities are conducted from premises located at the above listed
trading address.
ADVERSE
A search of the traced the following litigation listed against the
subject at that date.
Default Report
Listing
Account Number :
182LIN001
Account Type : 30
day account
Member :
Transpacific Ind P/L
Date :
24 April 2007
Amount :
$42,104
Reason :
Payment default
Assoc Code :
Company’s Account
FINANCES
During the current interview conducted with the subjects Financial
Director, Stuart Hyde, he advised that for the last financial year ended 31
December 2006, the subject recorded revenue of $120,000,000.
For the year ended 31 December 2005, the subject recorded revenue of
$88,500,000 which resulted in an operating profit of $5,100,000.
In regards to asset backing, the subject is noted to own the premises
located at the above listed trading address. A property search can be conducted
at your request to confirm ownership.
Net Assets are valued at more than $25,000,000.
The subject is ultimately owned by the Lincoln Electric Holdings Inc. of
the USA, a corporation which is listed in the Nasdaq and employs 8,430f
globally.
For the last financial year ended 31 December 2006, the group reported
consolidated sales of US$1,971.5 million which resulted in Net Income of US$175
million.
TRADE SURVEY
A trade survey on the subject traced the following accounts:
(PQ Australia) Nominated supplier failed to respond to correspondence
despite chasing.
(One Steel) Nominated supplier declined to provide a reference owing to
company policy.
SUMMARY
The subject was incorporated in New South Wales on 28 July 1938 under
the current style.
Operations were established as a new venture in Australia in 1938.
for the last financial year ended 31 December 2006, the subject recorded
revenue of $120,000,000.
In regards to asset backing, the subject is noted to own the premises
located at the above listed trading address. A property search can be conducted
at your request to confirm ownership.
Net Assets are valued at more than $25,000,000.
The subject is ultimately owned by the Lincoln Electric Holdings Inc. of
the USA, a corporation which is listed in the Nasdaq and employs 8,430f
globally.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)