MIRA INFORM REPORT

 

 

Report Date :

24.03.2007

 

IDENTIFICATION DETAILS

 

Name :

NIPPON CARGO AIRLINES CO LTD

 

 

Registered Office :

Onarimon Yusen Bldg 6F 3-23-5 Nishishimbashi Minatoku Tokyo 105-0003

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

Sept 1978

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Scheduled & non-scheduled air cargo transport services

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 968.7 millions

 

 

Status :

Moderate

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

name

 

NIPPON CARGO AIRLINES CO LTD

 

 

REGD NAME

 

Nihon Kamotsu Kouku KK

 

 

MAIN OFFICE

 

Onarimon Yusen Bldg 6F 3-23-5 Nishishimbashi Minatoku Tokyo 105-0003 JAPAN

Tel        : 03-5402-3003    

Fax       : 03-5402-1808

 

 

MAIN OPERATION CENTER

 

Cargo Administration Bldg 4F, New Tokyo International Airport, Narita City Chiba-Pref 282-0021, as given.

URL : http://www.nca.aero/

E-Mail address: info@nca.aero

 

 

ACTIVITIES

 

Scheduled & non-scheduled air cargo transport services

 

 

BRANCHES

 

Narita Airport, Kansai Airport, Central Japan Airport

 

 

OVERSEAS

 

New York, Boston, Chicago, Atlanta, Anchorage, San Francisco, Los Angeles; Hong Kong, Singapore, Bangkok, Bangkok Airport, Seoul, Seoul Airport, Shanghai, Shanghai Airport; Amsterdam, Frankfurt, Milan

 

WAREHOUSE:  Narita New Tokyo Int’l Airport, Kansai Int’l Airport, Central Japan Int’l Airport: New York J F Kennedy Int’l Airport, San Francisco Int’l Airport, Chicago O’Hare Int’l Airport, Boston, Atlanta; Amsterdam Schipol Airport, Milan Malpensa Airport, Frankfurt Main Airport; Hong Kong Int’l Airport, Bangkok Airport, Singapore Changi Int’l Airport, Shanghai Pudong Int’l Airport

 

 

OFFICERS

 

TAKURO UCHIYAMA, PRES                              Yasutaka Tsuruno, s/mgn dir

Tetsushi Ohtsuki, s/mgn dir                                Minoru Yonekura, mgn dir

Takuzo Nomura, mgn dir                         Ryoji Murata, mgn dir

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        R/WEAK                       A/SALES          Yen 103,619 M

PAYMENTS      REGULAR                     CAPITAL           Yen 21,600 M

TREND             UP                                WORTH            Yen 10,669 M

STARTED         1978                             EMPLOYES      840

 

 

COMMENT

 

AIR CARGO TRANSPORT SERVICE PROVIDER, AFFILIATED TO NIPPON YUSEN KK.  FINANCIAL SITUATION CONSIDERED RATHER WEAK BUT SHOULD BE GOOD FOR MODERATE BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 968.7 MILLION, 30 DAYS NORMAL TERMS.  .

 

                                    Notes: Forecast figures for the 31/03/2007 fiscal term.

 

 

HIGHLIGHTS

           

The subject company was established by five companies: Kawasaki Kisen KK, Nippon Yusen KK, Yamashita-Shinnihon KK, Mitsui OSK Lines and All Nippon Airways in order to advance into air cargo transport services.  In Aug 1983, granted license for scheduled air cargo transportation from the then Ministry of Transport.  Offers scheduled and non-scheduled air cargo transport services around the world, having 21 locations: Japan (3), USA (7), Asia (8),           Europe (3), including airport offices.  Operates 11 Boeing cargo aircrafts, servicing to and from these areas.

 

 

FINANCIAL INFORMATION

           

The sales volume for Mar/2006 fiscal term amounted to Yen 103,619 million, a 7.4% up from Yen 96,499 million in the previous term.  Exports of LCD’s to USA & Europe were robust.  Those for Singapore and Thailand were also steady.  Imports of fashion goods and vegetables from Italy rose.  By regions, Japan was up 1.9% to Yen 21,045 million, Europe up 13.7% to Yen 5,851 million, USA up 1.4% to Yen 7,522 and Asia down 4.3% to Yen 14,163 million, respectively.   The operations dipped in the deficit to post Yen 10,421 million recurring loss and Yen 10,985 million net loss, respectively, compared with Yen 143 million recurring profit and Yen 12 million net profit, respectively, a year ago.  Skyrocketing fuel oil prices ate heavily into profits.

 

For the current term ending Mar 2007 the operations are expected to come back to the black but still limited to a minimum amount post-taxes, on a 2.3% rise in turnover, to Yen 106,000 million.  Fuel oil prices continue to erode profits.

 

(Half yearly results ending Jun/2006): sales 48,582 million (up1.2%), recurring loss Yen 6,860 million, net loss Yen 9,243 million.  In Apr/2006 capital increased to Yen 30,574 million.  Reported total assets at Yen 75,283 million and net worth at Yen 18,995 million.

 

The financial situation is considered RATHER WEAK but should be good for MODERATE business engagements.  Max credit limit is estimated at Yen 968.7 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered:            Sept 1978

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    768 million shares

Issued:                          432 million shares

Sum:                            Yen 21,600 million

Major shareholders (%): Nippon Yusen KK*(80.99), Nippon Express Co (5.0), Tokio Marine & Nichido Fire Ins (2.35), Mitsui Sumitomo Fire Ins (1.68), Resona Bank (1.56), Mitsubishi UFJ Trust Bank (0.83), Nippon Life Ins (0.78), Meiji Yasuda Life Ins (0.63), Mitsui Life Ins (0.47)

No. of shareholders:       39

*.. Became the top shareholder by taking over on 15/05/2006 of Global Logistics Investment, which held 55.18% of the share.

*.. Nippon Yusen KK, Japan’s largest shipping company with century-old history, Tokyo, founded 1885, listed Tokyo, Osaka, Nagoya S/E’s, capital Yen 88,531 million, turnover Yen 1,929,302 million, recurring profit Yen 140,451 million, net profit Yen 92,058 million, total assets Yen 1,877,440 million, net worth Yen 575,368 million, employees 25,732, pres Koji Miyahara

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

 

 

OPERATION

 

Activities: Air cargo transport service provider, offering scheduled and non-scheduled air cargo transport services, operating 11 air cargo crafts, with warehousing facilities at major international airports worldwide (--100%).

 

Operating aircrafts: Three Boeing 747-400Fs; four Boeing 747-200Fs; four 747-SFs (converted to freighter).

 

Clients: [Air freight forwarders, cargo owners] Nippon Express, Kintetsu World Express, MO Air System, Hankyu Express International, other.   

 

No. of accounts: 500

 

Domestic areas of activities: Nationwide

 

Suppliers: [Oil refineries] Nippon Oil Corp, 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)

MUFG (H/O)

 

Relations: Satisfactory

 

 

FINANCES

 

(Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

103,619

96,499

 

  Cost of Sales

95,587

78,853

 

      GROSS PROFIT

8,032

17,645

 

  Selling & Adm Costs

17,811

17,024

 

      OPERATING PROFIT

-9,779

621

 

  Non-Operating P/L

-642

-478

 

      RECURRING PROFIT

-10,421

143

　

      NET PROFIT

-10,985

12

BALANCE SHEET

 

 

 

 

  Cash

　

2,180

9,391

 

  Receivables

 

12,964

10,171

 

  Inventory

 

384

372

 

  Securities, Marketable

　

　

 

  Other Current Assets

6,242

3,090

 

      TOTAL CURRENT ASSETS

21,770

23,024

 

  Property & Equipment

60,485

57,155

 

  Intangibles

 

828

1,200

 

  Investments, Other Fixed Assets

4,644

5,226

 

      TOTAL ASSETS

87,727

86,605

 

  Payables

 

10,416

6,575

 

  Short-Term Bank Loans

　

18,351

 

　

 

　

　

 

  Other Current Liabs

43,452

12,359

 

      TOTAL CURRENT LIABS

53,868

37,285

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

19,406

26,781

 

  Reserve for Retirement Allw

314

396

 

  Other Debts

　

3,469

493

 

      TOTAL LIABILITIES

77,057

64,955

 

      MINORITY INTERESTS

 

 

 

Common stock

21,600

21,600

 

Additional paid-in capital

(10,946)

38

 

Retained earnings

(10,946)

38

 

Evaluation p/l on investments/securities

15

11

 

Others

 

10,946

(38)

 

Treasury stock, at cost

　

　

 

      TOTAL S/HOLDERS` EQUITY

10,669

21,649

　

      TOTAL EQUITIES

87,727

86,605

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

-2,152

9,210

 

Cash Flows from Investment Activities

-8,220

-14,896

 

Cash Flows from Financing Activities

2,957

5,734

　

Cash, Bank Deposits at the Term End

　

2,180

9,391

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

10,669

21,649

 

 

Current Ratio (%)

40.41

61.75

 

 

Net Worth Ratio (%)

12.16

25.00

 

 

Recurring Profit Ratio (%)

-10.06

0.15

 

 

Net Profit Ratio (%)

-10.60

0.01

 

 

Return On Equity (%)

-102.96

0.06

 

 

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