MIRA
INFORM REPORT
|
Report Date : |
21.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
TORAY INDUSTRIES INC |
|
|
|
|
Registered Office : |
Nihombashi Mitsui Tower, 2-1-1
Nihombashi-Muromachi Chuoku Tokyo 103-0022 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
January, 1926 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of Synthetic Fiber |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
YEN 39,491.4 million |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
name of the company
TORAY INDUSTRIES INC
REGD NAME
Toray KK
MAIN OFFICE
Nihombashi Mitsui Tower, 2-1-1
Nihombashi-Muromachi Chuoku Tokyo 103-0022 JAPAN
Tel: 033245-5111
Fax: 03-3245-5054
URL
E-Mail address
ACTIVITIES
Mfg of synthetic fiber
BRANCH(ES)
Nagoya, Fukuoka, Fukui, Sendai, Sapporo, Hiroshima
OVERSEAS
USA, China, Korea, UK (--subsidiaries)
FACTORY (IES)
Shiga (2), Ehime, Nagoya, Aichi (2), Okazaki, Mishima,
Chiba, Tsuchiura, Gifu, Ishikawa
CHIEF EXEC
SADAYUKI SAKAIBARA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,546,461 M
PAYMENTS REGULAR CAPITAL Yen 96,937 M
TREND STEADY WORTH Yen 649,670 M
STARTED 1926 EMPLOYES 36,553
COMMENT
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 39,491.4 MILLION, 30 DAYS NORMAL
TERMS.
Forecast
(or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company was established originally in 1926 as Toyo Rayon Company with Mitsui & Company’s investment. Enjoys top share in world carbon fiber with market share of more than 30%. Aggressive in overseas business including polyester line. Stressing advanced materials such as high-performance films and degradable plastics.
Recent news from Nikkei dated 09/Oct/2007:
The firm is planning to invest about Yen 30,000 million to build a factory to mass-produce carbon fiber automotive parts as early as 2010, becoming the first company in the world to commercialize such products. The plant will be built in Nagoya at the site of its plastic and chemical operations.
The firm will further announced to implement chemical recycling of nylon 6 in garments with Patagonia International Inc, Calif, USA, in the first such move in the world. It will start recycling with the 2008 spring-summer collection of surf pants and extend those efforts to cover the fall-winter collection of hard-shell jackets for alpine climbing. These products will be sold thru 2,000 retail stores in 12 counties around the world.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 1,546,461 million, an 8.3% up from Yen 1,427,488 million in the previous term. Asian economies led by China expanded briskly. By divisions, fibers & textiles up 4.7% to Yen 607,800 million; IT-related up 12.3% to Yen 163,800 million; Carbon/Fiber up 30.1% to Yen 68,600 million, Plastic/Chemicals up 11.0% to Yen 375,300 million. The recurring profit was posted at Yen 97,520 million and the net profit at Yen 58,577 million, respectively, compared with Yen 87,650 million recurring profit and Yen 47409 million net profit, respectively, a year ago. The net profits recorded highest for two consecutive years.
(Apr/Sept/2007 results): Sales Yen 802,332 million (up 7.5%), operating profit Yen 44,027 million (up 2.6%), recurring profit Yen 41,877 million (up 3.4%), net profit Yen 22,993 million (down 18.0%). (% compared with the same period the last year). The decline in net profit is referred to the rising costs of materials and fuel oils.
For the current term ending Mar 2008 the recurring profit is
projected at Yen 101,000 million and the net profit at Yen 56,000 million, on a
7.3% rise in turnover, to Yen 1,660,000 million. Data-communication systems growing. Textile drops pausing.
Carbon fibers, environment and engineering businesses growing further on
strength of vigorous demand. Planning
to raise production capacity of carbon fibers by 40% in Ehime Pref by 2008 and
in US and France in Dec 2008.
Additionally increased urgently production capacity by 6,100 tons at end
of oct/2007.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is estimated at Yen 3,941.4 million, on 30 days
normal terms.
REGISTRATION
Date Registered: Jan
1926
Legal Status : Limited Company (Kabushiki Kaisha)
Authorized : 4,000 million shares
Issued : 1,401,481,403 shares
Sum : Yen 96,937 million
Major shareholders (%): Master Trust Bank of Japan T (5.4), Japan Trustee Services T (4.4), Nippon Life Ins (4.2), Mitsui Life Ins (3.4), State Street Bank & Trust (2.5), Japan Trustee Services (2.5), SMBC (2.1), Dai-ichi Life Ins (1.8), Mitsui Sumitomo Ins (1.2), Chuo Mitsui Trust (1.0); foreign owners (20.7).
No. of shareholders
158,539
Listed on the
S/Exchange (s) of
Tokyo,
Osaka, Nagoya, London, Luxemburg
Managements
Akikazu
Shimomura, ch; Sadayuki Sakakibara, pres; Chiaki Tanaka, v pres; Motoo Yoshikawa,
v pres; Yukihiro Sugimoto, v pres; Akihiro Nikkaku, v pres; Osamu Nakatani, v
pres; Masayoshi Kamiura, v pres; Junichi Fujikawa, v pres; Eizo Tanaka, v pres;
Shinichi Koizumi, v pres
Nothing
detrimental is known as to the commercial morality of executives.
Related companies
Toray Engineering, Chori Co, Soda Aromatic, other.
OPERATION
Activities:
Manufactures synthetic fibers, others:
(Sales
breakdown by divisions):.
Fibers
& Textiles (39%): filament yarns, spun yarns, woven &
knitted fabrics of nylon, polyester & acrylics, non-woven fabrics, man-made
suede, apparel products;
Plastics
& Chemicals (24%): nylon, ABS, PBT, PPS, POM & other
resins & molded products, polyolefin foam, polyester, polypropylene, PPS
& other films & processed film products, raw materials for synthetic
fibers & plastics, gypsum, zeolite catalysts, pharmaceutical &
agrochemical intermediates & other fine chemicals, veterinary medicines;
IT-Related
Products (17%): films & plastic products for information &
telecommunications related areas, electronic circuit materials,
semiconductor-related materials, LCD color filters & its related materials
& equipment, PDP-related materials, magnetic recording materials, graphic
materials & its related equipment;
Carbon
Fiber Composite Materials (4%): carbon fiber, advanced composite
materials & fabricated products;
Environment
& Engineering (10%); comprehensive engineering,
condominiums & homes, industrial machinery, environmental equipment, water
treatment membranes & related equipment, materials for housing, building
and civil engineering applications;
Life
Science & Other Businesses (5%): pharmaceuticals, medical
products, analysis, physical evaluation, research related services, other.
Overseas
sales ratio (42.7%): Asia 27.3%, Europe, others 15.4%.
Clients
[Mfr, wholesalers] Toray Engineering,
Matsushita Electric Ind, Mitsui & Co, Toray Medical, Chori co, other.No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers
[Mfrs,
wholesalers] Toray International, Japan Energy, Mitsui & Co, Chori Co,
Toray Engineering, other..
Payment record
Regular
Location
Business
area in Tokyo. Office premises at the
caption address are leased and maintained satisfactorily.
Bank References
SMBC
(H/O)
Mizuho
Corporate Bank (H/O)
Relations:
Satisfactory
Financials
|
FINANCES: (Consolidated in million yen) |
|
|||
|
|
|
Terms Ending: |
31/03/2007 |
31/03/2006 |
|
INCOME STATEMENT |
|
|
||
|
|
Annual Sales |
|
1,546,461 |
1,427,488 |
|
|
Cost of Sales |
1,221,411 |
1,124,233 |
|
|
|
GROSS PROFIT |
325,050 |
303,255 |
|
|
|
Selling & Adm Costs |
222,627 |
210,212 |
|
|
|
OPERATING PROFIT |
102,423 |
93,043 |
|
|
|
Non-Operating P/L |
-4,903 |
-5,393 |
|
|
|
RECURRING PROFIT |
97,520 |
87,650 |
|
|
|
NET PROFIT |
58,577 |
47,409 |
|
|
BALANCE SHEET |
|
|
|
|
|
|
Cash |
|
71,365 |
86,040 |
|
|
Receivables |
|
288,859 |
257,345 |
|
|
Inventory |
|
302,934 |
264,299 |
|
|
Securities, Marketable |
800 |
987 |
|
|
|
Other Current Assets |
63,571 |
53,619 |
|
|
|
TOTAL CURRENT ASSETS |
727,529 |
662,290 |
|
|
|
Property & Equipment |
643,370 |
586,215 |
|
|
|
Intangibles |
|
13,490 |
11,522 |
|
|
Investments, Other Fixed Assets |
290,058 |
277,395 |
|
|
|
TOTAL ASSETS |
1,674,447 |
1,537,422 |
|
|
|
Payables |
|
210,471 |
208,375 |
|
|
Short-Term Bank Loans |
124,583 |
102,438 |
|
|
|
|
|
|
|
|
|
Other Current Liabs |
205,909 |
227,073 |
|
|
|
TOTAL CURRENT LIABS |
540,963 |
537,886 |
|
|
|
Debentures |
|
200,000 |
100,000 |
|
|
Long-Term Bank Loans |
166,686 |
186,407 |
|
|
|
Reserve for Retirement Allw |
75,936 |
74,590 |
|
|
|
Other Debts |
|
41,192 |
47,839 |
|
|
TOTAL LIABILITIES |
1,024,777 |
946,722 |
|
|
|
MINORITY INTERESTS |
|
53,674 |
|
|
|
Common stock |
96,937 |
96,937 |
|
|
|
Additional paid-in capital |
85,814 |
85,804 |
|
|
|
Retained earnings |
352,994 |
307,227 |
|
|
|
Evaluation p/l on
investments/securities |
56,937 |
66,886 |
|
|
|
Others |
|
57,986 |
(19,125) |
|
|
Treasury stock, at cost |
(998) |
(703) |
|
|
|
TOTAL S/HOLDERS` EQUITY |
649,670 |
537,026 |
|
|
|
TOTAL EQUITIES |
1,674,447 |
1,537,422 |
|
|
CONSOLIDATED CASH FLOWS |
|
|
||
|
|
|
Terms ending: |
31/03/2007 |
31/03/2006 |
|
|
Cash Flows from Operating Activities |
|
77,539 |
116,022 |
|
|
Cash Flows from Investment
Activities |
-124,115 |
-125,675 |
|
|
|
Cash Flows from Financing Activities |
30,270 |
-5,025 |
|
|
|
Cash, Bank Deposits at the Term End |
|
72,102 |
86,961 |
|
ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
||
|
|
|
Net Worth (S/Holders' Equity) |
649,670 |
537,026 |
|
|
|
Current Ratio (%) |
134.49 |
123.13 |
|
|
|
Net Worth Ratio (%) |
38.80 |
34.93 |
|
|
|
Recurring Profit Ratio (%) |
6.31 |
6.14 |
|
|
|
Net Profit Ratio (%) |
3.79 |
3.32 |
|
|
|
Return On Equity (%) |
9.02 |
8.83 |
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. |
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%)