MIRA
INFORM REPORT
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Report Date : |
26.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
JTEKT CORPORATION |
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Registered Office : |
Midland Square 15F, 4-7-1 Meieki Nakamuraku Nagoya 450-8515 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
Jan 1935 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc |
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 17401.6 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
JTEKT CORPORATION
REGD NAME
KK JTEKT
NAGOYA OFFICE
Midland Square 15F, 4-7-1 Meieki Nakamuraku Nagoya 450-8515 JAPAN
Tel : 052-527-1900
Fax : 052-527-1911
OSAKA OFFICE
3-5-8 Minamisemba Chuoku Osaka 542-8502 JAPAN
Tel : 06-6271-8451
Fax : 06-6245-7892
URL : http://www.jtekt.co.jp/
E-Mail address: info@jtekt.co.jp
ACTIVITIES
Mfg of steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc
BRANCHES
Osaka, Nagoya, Toyota, Kariya, Yokohama, Nara
OVERSEAS
(Subsidiaries): USA (12), Brazil (3), Argentina, Canada, Panama,
Mexico, France (7), Netherlands (3), UK (3), Germany (2), Czech Republic (2),
Italy, Belgium (2), Romania, Sweden, Spain, China (16), Thailand (7),
Korea (2), Singapore, Australia, Malaysia, Philippines
FACTORY(IES)
Nara, Osaka, Okazaki, Toyohashi, Tagomisaki, Kokubu, Tokushima,
Tokyo, Kagawa, Kameyama, Kariya, Higashikariya
CHIEF EXEC
KOHSHI YOSHIDA, PRES & CEO
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 724,349 M
PAYMENTS REGULAR CAPITAL Yen 35,877 M
TREND STEADY WORTH Yen 299,664 M
STARTED 1935 EMPLOYES 30,029
COMMENT
MFR SPECIALIZING IN BEARINGS & STEERING SYSTEMS FOR
AUTOMOBILE, AFFILIATED TO TOYOTA MOTOR.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 17,401.6 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2007 fiscal term
HIGHLIGHTS
This is the nation’s second largest mfr of bearings for automobiles,
reorganized in Jan 2006 by the merger of Koyo Seiko Co Ltd and Toyota Machine
Works Ltd, both Toyota Motor group firms, with Koyo Seiko as surviving
entity. By the merger, newly added
machine tools & driveline components businesses. The firm developed world’s first electronically controlled power
steering in 1983, followed by world’s first electric power steering in
1988. Expanding factory automation
system and electronic equipment related divisions. Aggressively involved in bearing production in USA, UK and
China. Clients are major automakers,
other, nationwide.
(New investment): To meet the rising demand for bearings both at home and abroad, the firm will boost its capital outlays by nearly 10% to Yen 27,000 million in fiscal 2007, spending about Yen 5,000 million to add a line at Osaka-Pref factory. The firm intends to buoy production of large bearings in fiscal 2007 to more than Yen 12,000 million, up 70% from two years earlier.
(Cited from The Nikkei of 15/03/2007 edition).
FINANCIAL INFORMATION
The sales volume for Mar/2006 fiscal term amounted to Yen
724,349 million, a 27% rise from Yen 570,243 million in the previous term. Sales rose by robust demand in China,
Thailand and other areas. The said
merger took effects. Steering systems
and bearings were in rising demand both domestically and abroad, in USA, China,
Thailand, other Asia, centering on auto makers. Machine tools rose as a result of the merger, for use in
industrial heat treatment furnaces & machine tools mfg. The recurring profit was posted at Yen
46,804 million and the net profit at Yen 27,285 million, respectively, compared
with Yen 31,769 million recurring profit and Yen 16,451 million net profit,
respectively, a year ago. Unfavorable
factors such as rising steel & fuel oil prices were offset by increased
sales, the effect of the merger and other positive factors, resulting in
improved results.
For the current term ending Mar 2007 the recurring profit is
projected at Yen 65,000 million and the net profit at Yen 39,000 million, on a
39.4% rise in turnover, to Yen 1,010,000 million. Merger effect will contribute fully to earnings. Bearings & steering systems for
automobiles growing steadily. Machine tools also rising at high
level. Merger costs were already
written off in the previous term.
(Fourth quarterly results ending Dec/2006): sales Yen 754,515
million (up 59.4%), operating profit Yen 45,862 million (up 72.7%), recurring
profit Yen 47,446 million (up 64.0%), net profit Yen 30,162 million (up 90.4%).
(% compared with the same period the previous year). Bearings & steering systems rose steadily for automakers both at home and
abroad. Sales of machine tools also
rose, contributed from the merger effects.
This contributed to the profits improvement.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 17,401.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jan
1935
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,200
million shares
Issued: 319,394,724
shares
Sum: Yen
35,877 million
Major shareholders (%): Toyota Motor*(22.6), Master Trust Bank of Japan T (7.3), Japan Trustee Services Bank
T (6.5), Denso Corp (5.5), Nippon Life Ins (4.2), Toyota Industries (2.3), Resona Bank
(2.1), Sumitomo Trust Bank (2.1), SMBC (1.9), Toyota Tsusho Corp (1.6); foreign
owners (16.3)
No. of shareholders: 15,679
*.. Toyota Motor Corp, largest carmaker, Aichi-Pref, founded 1937, listed Tokyo, Osaka, Nagoya, New York, London S/E’s, capital Yen 397,050 million, turnover Yen 21,036,909 million, operating profit Yen 1,878,342 million, recurring profit Yen 2,087,360 million, net profit Yen 1,372,180 million, total assets Yen 28,731,595 million, net worth Yen 10,560,449 million, employees 285,977, pres Katsuaki Watanabe
Listed on the S/Exchange (s) of: Tokyo, Osaka, Nagoya
Managements: Takaya Yamada, ch; Kohshi Yoshida, pres; Motohiko
Yokoyama, v pres; Toshikatsu Taniguchi, v pres; Taisuke Senoo, s/mgn dir;
Masakazu Nagai, s/mgn dir; Nobuyoshi Hisada, s/mgn dir; Shuji Miyawaki, mgn
dir; Tetsuo Inui, mgn dir; Takaaki Suzuki, mgn dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Koyo Machine Ind, JTEKT North America Inc, Koyo Canada Inc, JTEKT Europe, JTEKT Automotive UK, JTEKT
(China) Co, other (Tot 87 as of Mar/06)
OPERATION
Activities: Manufactures bearings, steering systems, driveline components
(84%), machine tools, sensor systems, mechatronics components, others (16%).
(Products
lineups):
Steering systems: electric power steering, hydraulic power steering, high-performance steering, components;
Driveline components: driveshaft, 4WD couplings, TORSENs (torque sensing differential for fulltime 4WD), damper pull-ups, proportionally controlled valves for AT, CVT oil pumps;
Bearings: general purpose bearings, automotive bearings & unit products, bearings for extreme special environment, bearings for electric & electronic products, machine tool bearings, steel mill bearings, bearings for general industrial equipment, & related products;
Machine tools: machine tools & Mechatronics, grinders, horizontal spindle machining center, die & mold machining center;
Mechatronics: programmable controllers (TOYOPUC), motion controllers, general Operation panels;
Sensor
systems: sensors for medical &
health care equipment, advanced automotive systems, etc.
Overseas
sales ratio 50.5%: Europe 20.9%, N America 15.5%, Asia/Oceania 11.5%,
other region 2.6%.
Clients: [Automakers, machinery mfrs] Toyota Motor, Nissan Motor, Hino Motors, Mitsubishi Motors, Daihatsu Motor, Matsuda Motor Corp, Suzuki Motor, Aisin Seiki, Aisin AW Co, Denso Corp, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Toyota Tsusho Corp, Denso Corp,
Mitsubishi Electric Corp, Ihara Seiki, Nakanishi Metal Works, Nakatetsu KK,
Marubeni-Itochu Steel Inc, Hekikai Koki, Yamasei Kogyo, other
Payment record: Regular
Location: Business area in Nagoya. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Resona Bank (Osaka)
Sumitomo Trust Bank (H/O)
Relations: Satisfactory
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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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724,349 |
570,243 |
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Cost of Sales |
591,783 |
468,446 |
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GROSS PROFIT |
132,566 |
101,796 |
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Selling & Adm Costs |
87,941 |
71,427 |
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OPERATING PROFIT |
44,624 |
30,369 |
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Non-Operating P/L |
2,180 |
1,400 |
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RECURRING PROFIT |
46,804 |
31,769 |
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NET PROFIT |
27,285 |
16,451 |
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BALANCE SHEET |
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Cash |
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50,203 |
35,861 |
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Receivables |
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221,627 |
139,137 |
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Inventory |
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115,503 |
74,225 |
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Securities, Marketable |
52 |
43 |
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Other Current Assets |
36,840 |
22,131 |
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TOTAL CURRENT ASSETS |
424,225 |
271,397 |
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Property & Equipment |
309,131 |
178,422 |
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Intangibles |
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3,846 |
3,983 |
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Investments, Other Fixed Assets |
112,031 |
56,746 |
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TOTAL ASSETS |
849,233 |
510,548 |
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Payables |
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180,733 |
122,056 |
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Short-Term Bank Loans |
65,344 |
52,529 |
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Other Current Liabs |
100,124 |
65,821 |
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TOTAL CURRENT LIABS |
346,201 |
240,406 |
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Debentures |
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50,024 |
23,050 |
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Long-Term Bank Loans |
71,397 |
46,467 |
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Reserve for Retirement Allw |
63,151 |
44,388 |
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Other Debts |
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5,471 |
1,871 |
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TOTAL LIABILITIES |
536,244 |
356,182 |
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MINORITY INTERESTS |
13,324 |
9,836 |
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Common
stock |
35,877 |
33,463 |
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Additional
paid-in capital |
98,518 |
68,235 |
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Retained
earnings |
144,244 |
45,929 |
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Evaluation
p/l on investments/securities |
27,681 |
7,865 |
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Others |
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(6,376) |
(10,803) |
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Treasury
stock, at cost |
(280) |
(159) |
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TOTAL S/HOLDERS` EQUITY |
299,664 |
144,530 |
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TOTAL EQUITIES |
849,233 |
510,548 |
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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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51,895 |
43,351 |
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Cash
Flows from Investment Activities |
-37,731 |
-19,858 |
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Cash
Flows from Financing Activities |
-9,491 |
-22,550 |
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Cash,
Bank Deposits at the Term End |
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49,548 |
35,425 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2006 |
31/03/2005 |
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Net
Worth (S/Holders' Equity) |
299,664 |
144,530 |
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Current
Ratio (%) |
122.54 |
112.89 |
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Net Worth
Ratio (%) |
35.29 |
28.31 |
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Recurring
Profit Ratio (%) |
6.46 |
5.57 |
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Net
Profit Ratio (%) |
3.77 |
2.88 |
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Return
On Equity (%) |
9.11 |
11.38 |
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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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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%)