MIRA
INFORM REPORT
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Report Date : |
30th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
TUNGALOY
CORPORATION |
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Registered Office : |
Solid
Square, 580 Horikawacho Saiwaiku Kawasaki 212-8503, Japan |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
February
1950 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer
of cutting tools. |
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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Maximum Credit Limit : |
Yen 1,173.1 Million |
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Status : |
Fair |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name
TUNGALOY
CORPORATION
REGD NAME
KK
Tungaloy
MAIN OFFICE
Solid
Square, 580 Horikawacho Saiwaiku Kawasaki 212-8503 JAPAN
Tel : 044-548-9500
Fax : 044-548-9540
*.. The
given address is its Technical Center & Overseas Business Headquarters at:
2-7 Sugasawacho Tsurumiku Yokohama; Tel: 045-503-9051; Fax: 045-503-9051
URL :
http://www.tungaloy.co.jp
E-Mail address :
info@tungaloy.co.jp
ACTIVITIES
Mfg of cutting tools
BRANCHES
Tokyo, Nagoya, Osaka
OVERSEAS
USA (3), Canada, Mexico, Europe (3), China (4), other (see
REGISTRATION)
FACTORY(IES)
Iwaki, Nirasaki, Nagoya
OFFICERS
AKIHIRO TOKUNAGA, PRES Yoshihito
Uehara, s/mgn dir
Hirofumi Taniguchi, mgn dir Kazuo
Hibi, mgn dir
Takeshi Saito, dir Takao
Takeuchi, dir
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
46,146 M
PAYMENTS REGULAR CAPITAL Yen 8,000 M
TREND STEADY WORTH Yen 26,292 M
STARTED 1950 EMPLOYES 2,374
COMMENT
MFR SPECIALIZING IN CUTTING TOOLS.. FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,173.1 MILLION, 30 DAYS NORMAL TERMS. .
Note: Forecast for the 31/03/2007 fiscal term.
HIGHLIGHTS
The subject company was established by Toshiba Group in order to
amalgamate subsidiaries in the similar line of cutting tools businesses. In 2004, became independent from the Group
by MBO sponsored by Nomura Principal Finance in 2004. This is a leading mfr of ultra-hard cutting tools, cutting tools
for electronics mfg, sintering tools, friction materials, other. Products for automotive industries account
for more than 50% of total sales. About
30% are exported. Has 19 overseas
subsidiaries. Domestic clients include automakers, heavy machinery mfrs, electronics
mfrs, other, nationwide. Planning IPO.
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen 46,146
million, an 8.3% up from Yen 42,614 million in the previous term. This is thanks to expanded capital spending
of automobile-related industries spurred by robust automobile demand. For automobile industry, rose by 9.4% to Yen
30,895 million, for IT-related industries by 9.5% to Yen 4,291 million, and
sintering tools by 4.9% to Yen 3,088 million.
The recurring profit was posted at Yen 6,504 million and the net profit
at Yen 3,970 million, respectively, compared with Yen 5,879 million recurring
profit and Yen 3,652 million net profit, respectively, a year ago.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 6,700 million and the net profit at Yen 4,000 million,
respectively, on a 5% rise in turnover, to Yen 48,300 million. Business is seen uprising.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 1,173.1 million, on 30 days normal terms.
REGISTRATION
Date Registered : Feb 1950
Legal Status :
Limited Company (Kabushiki Kaisha)
Authorized :
170,472,907 shares
Issued :
35.2 million shares
Sum :
Yen 8,000 million
Major shareholders (%)
Nomura Principal Finance*(94.7), Employees’ S/Holding Assn (2.8)
*.. Financing Company, Tokyo, 100% owned by Nomura Holdings Inc,
founded 2000, capital Yen 8,935 million, turnover Yen 83,525 million, net
profit Yen 37,812 million, employees 42, pres A Maruyama
No. of shareholders: 48
Related (affiliates) companies
(Domestic): Tungaloy Logistics & Technology, Tungaloy
Precision, Saga Tool, Yamato Tool, New Fine Tool, Hanta Precision, other.
(Overseas): Tungaloy Europe GmbH, Tungaloy Italia Spa, Tungaloy
France Sarl, Tungaloy Cutting Tool (Shanghai), Tungaloy Xiamen Cutting Tool,
Tungaloy Xiamen Co, Tungaloy Kunshan Co, Tungaloy Taiwan Corp, Thai Tungaloy
Cutting Took, Tungaloy Mfg (Thailand), Tungaloy Seimitsu Philippines Inc,
Tungaloy Singapore (Pte) Ltd,
Tungaloy Australia Pty Ltd, Tungaloy America Inc, Technical
Support Center Nashville, Technical Support Center Charlotte, Tungaloy America
Inc (Canada Branch), Tungaloy de Mexico Sa.
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Manufactures ultra hard metal cutting tools (67%),
electronics parts mfg tools (9%), sintering tools (7%), milling tools, civil
engineering & building construction tools, wear-resistant tools, other hard
cutting tools (--10%), friction materials, others (8%).
Overseas sales ratio 31.1%: Asia (Singapore, China, Taiwan,
Thailand mainly) 15.7%; N America, Europe, other 15.4%.
Clients
[Automakers, mfrs, wholesalers] Ishikawajima-Harima Heavy Ind,
Komatsu Ltd, Toyota Motor, Nissan Motors, Nippon Steel, Ibiden Jushi Co, Shinko
Electric Ind, Nisshin Kogyo, Naito, other.
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Mitsui
& Co, Asahi Diamond Ind, Mitsui Metal Mining, Tungaloy Precision, Saga
Tool, KYC, Ueki Corp, other.
Payment record
Regular
Location
Business area in Yokohama.
Office premises at the caption address are owned and maintained
satisfactorily.
Bank References
SMBC (Kawasaki)
MUFJ (Kawasaki)
Relations: Satisfactory
FINANCES
(Consolidated in million yen)
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Terms Ending: |
31/03/2006 |
31/03/2005 |
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INCOME
STATEMENT |
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Annual Sales |
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46,146
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42,614
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Cost of Sales |
25,607
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24,513
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GROSS PROFIT |
20,538
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18,101
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Selling & Adm Costs |
13,310
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11,905
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OPERATING PROFIT |
7,228
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6,196
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Non-Operating P/L |
-724 |
-317 |
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RECURRING PROFIT |
6,504
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5,879
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NET PROFIT |
3,970
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3,652
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BALANCE
SHEET |
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Cash |
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10,254
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10,763
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Receivables |
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9,900
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8,968
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Inventory |
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7,311
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5,020
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Securities, Marketable |
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Other Current Assets |
1,530
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1,349
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TOTAL CURRENT ASSETS |
28,995
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26,100
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Property & Equipment |
12,347
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11,206
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Intangibles |
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868 |
762 |
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Investments, Other Fixed Assets |
5,616
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4,932
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TOTAL ASSETS |
47,826
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43,000
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Payables |
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2,632
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1,876
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Short-Term Bank Loans |
1,440
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1,940
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Other Current Liabs |
5,415
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4,682
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TOTAL CURRENT LIABS |
9,487
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8,498
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Debentures |
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Long-Term Bank Loans |
5,900
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7,340
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Reserve for Retirement Allw |
4,616
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4,972
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Other Debts |
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884 |
497 |
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TOTAL LIABILITIES |
20,887
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21,307
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MINORITY INTERESTS |
647 |
486 |
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Common
stock |
8,000
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8,000
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Additional
paid-in capital |
2,613
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2,613
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Retained
earnings |
14,336
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10,501
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Evaluation
p/l on investments/securities |
951 |
466 |
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Others |
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392 |
(374) |
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Treasury
stock, at cost |
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TOTAL S/HOLDERS` EQUITY |
26,292
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21,206
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TOTAL EQUITIES |
47,826
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43,000
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CONSOLIDATED
CASH FLOWS |
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Terms
ending: |
31/03/2006 |
31/03/2005 |
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Cash
Flows from Operating Activities |
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3,355
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4,790
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Cash
Flows from Investment Activities |
-1,807
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-2,926
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Cash
Flows from Financing Activities |
-2,263
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-11,487
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Cash,
Bank Deposits at the Term End |
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8,227
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8,702
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ANALYTICAL
RATIOS Terms ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
26,292
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21,206
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Current
Ratio (%) |
305.63
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307.13
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Net
Worth Ratio (%) |
54.97
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49.32
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Recurring
Profit Ratio (%) |
14.09
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13.80
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Net
Profit Ratio (%) |
8.60 |
8.57 |
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Return
On Equity (%) |
15.10
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17.22
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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/normal. |
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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