MIRA
INFORM REPORT
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Report Date : |
11.09.2007 |
IDENTIFICATION DETAILS
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Name : |
UBE INDUSTRIES LTD |
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Registered Office : |
Seavans North Bldg, 1-2-1 Shibaura Minatoku |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Mar 1942 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Manufacturing of chemicals,
cement, machinery |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 12014 millions |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name
UBE INDUSTRIES LTD
REGD NAME
Ube Kosan KK
MAIN OFFICE
Seavans North Bldg,
1-2-1 Shibaura Minatoku
Tel : 03-5419-6112
Fax : 03-5419-6237
URL : http://ube-ind.co.jp/
E-Mail
address: (thru the URL)
ACTIVITIES
Mfg of
chemicals, cement, machinery
BRANCH(ES)
Ube (Yamaguchi)
(Head Office & Plant)
FACTORY(IES)
Ube,
CHIEF EXEC
HIROAKI
TAMURA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 655,608 M
PAYMENTS REGULAR CAPITAL Yen 58,399 M
TREND STEADY WORTH Yen
195,196 M
STARTED 1943 EMPLOYES 10,833
COMMENT
MFR OF CHEMICALS, CEMENT, MACHINERY, OTHER. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR THE PROPOSED CREDIT ENGAGEMENTS: US$430,000 / O/A 30 DAYS.
MAX
CREDIT LIMIT: YEN 12,014 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company was established originally in 1897 as coal mining firm and made a new start in 1942 thru merger of 3 firms in chemical, cement & machinery Industries. Has since grown into diversified mfr of chemicals & cement as mainline. Also handles injection molding machines, nylon materials and electronic materials. Originally started in Ube, Yamaguchi-Pref.
FINANCIAL INFORMATION
The sales volume for Mar/2007 fiscal term amounted to Yen 655,608 million, a 10.1% up from Yen 595,391 million in the previous term. By divisions, Chemicals & Plastics up 19.5% to Yen 210,402 million, thanks to sales price increase in caprolactam, synthetic rubber & polyamide resin. Cement & Construction Materials up 8.0% to Yen 207,820 million, as sales of cement & ready-mix concrete increased; Machinery & Metal Products up 11.5% to Yen 114,206 million. The recurring profit was posted at Yen 43,154 million and the net profit at Yen 22,013 million, respectively, compared with Yen 33,254 million recurring profit and Yen 16,006 million net profit, respectively, a year ago.
(First quarter results ended Jun/2007): Sales 160,311 million (up 5.7%), operating profit Yen 7,971 million (up 30.4%), recurring profit Yen 7,680 million (up 38.6%), net profit Yen 4,544 million (up 41.6%) (% in parenthesis compared with the same period last year). The improved results reflect higher revenues from Chemicals & plastic segment, supported by strong Asian economies. Rising costs of materials and fuel were absorbed by strong performance. Increased sales of coal also contributed.
For the current term ending Mar 2008 the recurring profit is projected at Yen 37,000 million and the net profit at Yen 21,000 million, on a 1.9% rise in turnover, to Yen 668,000 million. Demand for functional materials & fine chemicals continue growing. Higher material benzene prices may eat into profits. The firm is accelerating expansion of fast growing businesses such as rechargeable batteries, electronics & fine chemical materials.
The financial situation is considered maintained FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 12,014 million, on 30 days normal terms. The proposed amount is considered well within the firm’s financial capabilities.
REGISTRATION
Date
Registered: Mar 1942
Legal
Status: Limited Company
(Kabushiki Kaisha)
Authorized: 3,300 million shares
Issued: 1,008,993,923 shares
Sum: Yen 58,399 million
Major shareholders (%): Japan Trustee Services T (13.9), Master Services Bank of Japan T (7.5), Japan Trustee
Services
T4 (3.7), Sumitomo Life Ins (1.7), Nipponkoa Ins (1.6),
MUFG
(1.4), Mizuho Corporate Bank (1.2),
(1.2); foreign owners (23.5)
No. of
shareholders: 63,330
Listed
on the S/Exchange (s) of:
Managements: Hiroaki Tamura, pres; Yasuhisa Chiba, v pres; Kazuhiko Okada, v pres; Koji Kihira,
s/mgn dir; Nobuyuki Takahashi, s/mgn dir; Akinori Furukawa, s/mgn dir; Kazuma Sekiya,
s/mgn dir; Michio Takeshita, mgn dir; Masao Uno, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies
Ube
Materials, Ube Kosan Machinery, UCHE, TCL, other.
OPERATION
Activities: Manufactures, imports and exports chemicals & cement, other:
(Sales breakdown by divisions)
Chemicals & Resins (32%): synthetic
resins, caprolactam, polyamide resins;
Functional Chemicals & Fine Chemicals (13%): Withdrew from aluminum capacitor foil business;
Cement & Construction Materials (32%): cement, ready-mix concrete, calcia, magnesia, inorganic specialty products;
Machinery & Metal Products (17%):
molding machines, other industrial machinery;
Energy & Environment (5%);
Others (1%).
Overseas Sales (30.2%): Asia 18.6%, N America 4.6%,
Clients:
Chemical mfrs, oil refineries, wholesalers, other.
No. of
accounts: 2,000
Domestic
areas of activities: Nationwide
Suppliers:
Chemical mfrs, exporters, importers, oil traders, other
Payment
record: Regular
Location: Business area in
Bank References
MUFG
(H/O)
Mizuho
Bank (H/O)
Relations:
Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2007 |
31/03/2006 |
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INCOME STATEMENT |
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Annual Sales |
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655,608 |
595,391 |
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Cost of Sales |
527,990 |
474,997 |
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GROSS PROFIT |
127,618 |
120,394 |
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Selling & Adm Costs |
80,756 |
78,225 |
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OPERATING PROFIT |
46,862 |
42,169 |
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Non-Operating P/L |
-3,708 |
-8,915 |
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RECURRING PROFIT |
43,154 |
33,254 |
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NET PROFIT |
22,013 |
16,006 |
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BALANCE SHEET |
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Cash |
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21,694 |
20,623 |
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Receivables |
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161,581 |
147,823 |
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Inventory |
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79,185 |
81,459 |
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Securities, Marketable |
5 |
10 |
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Other Current Assets |
24,526 |
18,644 |
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TOTAL CURRENT ASSETS |
286,991 |
268,559 |
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Property & Equipment |
359,886 |
357,519 |
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Intangibles |
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4,050 |
4,812 |
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Investments, Other Fixed Assets |
63,944 |
69,547 |
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TOTAL ASSETS |
714,871 |
700,437 |
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Payables |
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104,351 |
97,070 |
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Short-Term Bank Loans |
144,658 |
123,951 |
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Other Current Liabs |
65,824 |
70,272 |
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TOTAL CURRENT LIABS |
314,833 |
291,293 |
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Debentures |
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20,868 |
22,418 |
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Long-Term Bank Loans |
152,740 |
181,117 |
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Reserve for Retirement Allw |
8,506 |
11,463 |
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Other Debts |
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22,728 |
25,783 |
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TOTAL LIABILITIES |
519,675 |
532,074 |
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MINORITY INTERESTS |
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18,600 |
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Common
stock |
58,399 |
58,399 |
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Additional
paid-in capital |
28,362 |
28,294 |
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Retained
earnings |
71,676 |
52,708 |
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Evaluation
p/l on investments/securities |
7,724 |
11,588 |
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Others |
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29,410 |
(900) |
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Treasury
stock, at cost |
(375) |
(326) |
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TOTAL S/HOLDERS` EQUITY |
195,196 |
149,763 |
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TOTAL EQUITIES |
714,871 |
700,437 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2007 |
31/03/2006 |
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Cash
Flows from Operating Activities |
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54,385 |
51,870 |
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Cash
Flows from Investment Activities |
-27,142 |
-22,542 |
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Cash
Flows from Financing Activities |
-27,592 |
-42,933 |
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Cash,
Bank Deposits at the Term End |
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21,278 |
20,077 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2007 |
31/03/2006 |
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Net Worth
(S/Holders' Equity) |
195,196 |
149,763 |
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Current
Ratio (%) |
91.16 |
92.20 |
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Net
Worth Ratio (%) |
27.31 |
21.38 |
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Recurring
Profit Ratio (%) |
6.58 |
5.59 |
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Net
Profit Ratio (%) |
3.36 |
2.69 |
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Return
On Equity (%) |
11.28 |
10.69 |
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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. |
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%)