MIRA
INFORM REPORT
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Report Date : |
14.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
KIORITZ CORPORATION |
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Registered Office : |
1-7-2 Suehirocho Ohme Tokyo 198-8711 |
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Country : |
Japan |
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Financials (as on) : |
30.11.2007 |
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Date of Incorporation : |
September 1947 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Chain Saws, Power Tillers, Grass Cutters, Mowers,
Other Forestry Machinery |
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 2,227.2 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
KIORITZ CORPORATION
REGD NAME: KK Kyoritsu
MAIN OFFICE: 1-7-2 Suehirocho Ohme
Tokyo 198-8711 JAPAN
Tel:
0428-32-6111 Fax: 0428-32-6181
URL: http://www.kioritz.co.jp/
E-Mail address: info@kioritz.co.jp
ACTIVITIES
Mfg of chain saws, power tillers, grass cutters, mowers,
other forestry machinery
BRANCHES
Osaka, Nagoya, Sendai, Toyama, Hiroshima, Niigata, Sapporo,
Shizuoka, other (Tot 12)
OVERSEAS
Kioritz Echo Mfg (Shenzhen) Co Ltd; Echo Incorporated (USA)
(--subsidiaries)
FACTORY(IES)
Yokosuka, Morioka
CHIEF EXEC
YASUHIKO KITAZUME, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 73,377 M
PAYMENTS REGULAR CAPITAL Yen 5,207 M
TREND STEADY WORTH Yen 32,055 M
STARTED 1947 EMPLOYES 1,974
COMMENT
MFR SPECIALIZING IN FORESTRY MACHINERY & POWER
TILLERS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 2,227.2 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 30/11/2008 fiscal term
HIGHLIGHTS
The subject company was
established at Suginamiku, Tokyo by two entrepreneur engineers for mfg
agricultural machinery and has expanded handling items and operations in
diversified areas. This is a
specialized mfr with strength in small air cooling 2 cycle gas engines and a
vender of agricultural and forestry equipment such as chainsaws, sprayers and
grass cutters on originally developed engines.
Highly competitive in chainsaws and power dusters. Export ratio is high at 60%, mainly to N
America. Expanding into
environment-related equipment, such as compact garbage incinerators. In 1972 opened a subsidiary in USA, Echo Inc
USA. In Apr 2004 founded a subsidiary
in China, Kioritz Echo Machinery (Shenzhen) Co Ltd. “Echo” is the brand name of the firm’s products. For domestic distribution, the firm operates
6 subsidiary agent dealers in Hokkaido, Tohoku (Northern Japan), Tokyo, Nagoya,
Osaka, Fukuoka to cover each region. In
USA, sales of agricultural machinery equipped with engines complying with gas
emission regulations in US are growing.
FINANCIAL INFORMATION
The
sales volume for Nov/2007 fiscal term amounted to Yen 73,377 million, a 6.3% up
from Yen 69,008 million in the previous term.
Domestically large sprayers & dusters in slump, hit by farmers’
tightened purchase holdback. Sales in N
America grew, let by brushcutters.
Second-tier subsidiary in N America contributed for full term. The recurring profit was posted at Yen 2,938
million and the net profit at Yen 1,490 million, respectively, compared with
Yen 2,880 million recurring profit and Yen 1,413 million net profit,
respectively, a year ago. Operating
profit rose, absorbing higher costs for compliance with exhaust gas
regulations.
(Dec/2007/Feb/2008
results): Sales Yen 15,220 million (down 0.5%), operating profit Yen 444
million (down 37.5%), recurring profit Yen 424 million (down 23.8%), net profit
Yen 210 million (down 20.3%). (%
compared with the corresponding period a year ago). Sales generally rise in the second quarter and the decline is
within its estimated targets. Overseas
sales grew to Russia and Europe.
For
the current term ending Nov 2008 the recurring profit is projected at Yen 2,200
million and the net profit at Yen 1,000 million, respectively, on a 0.2% rise
in turnover, to Yen 73,500 million.
Higher Yen against US Dollars will decrease sales volumes in Yen terms.
The
financial situation is considered maintained FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 2,227.2 million, on 30 days normal terms.
REGISTRATION
Date Registered: Sept
1947
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 200
million shares
Issued: 69,042,472
shares
Sum: Yen
5,207 million
Major shareholders (%)
Mitsui
& Co (16.9), TCSB (Mizuho Bank) (4.9), Japan Trustee Services T (4.5), JTSB
(CMTB Equity Investment) (4.1), Bank of Yokohama (3.9), Master Trust Bank of
Japan T (3.4), Nippon Life Ins (2.2), State Street Bank & Trust (2.0), MUFG
(1.8); foreign owners (12.5)
No. of shareholders: 5,239
Listed on the S/Exchange (s) of
Tokyo
Managements
Yasuhiko
Kitazume, pres; Hideaki Kawai, s/mgn dir; Takeshi Sasaki, mgn dir; Hiroaki
Andoh, mgn dir; Hyo Kurihara, mgn dir; Isao Takahashi, dir; Hiroaki Nagao, dir;
Nariyoshi Kondoh, dir
Nothing detrimental is knows as to the commercial morality
of executives.
Related companies
Echo Inc, Oppama Ind, other (Tot 13)
OPERATION
Activities:
Manufactures chain saws, brush-cutters, power blowers, engine cutters, hedge
trimmers for forestry (--43%), power sprayers, dusters, tillers for agriculture
(--36%), compact garbage incinerators,
other environmental machinery (--22%).
(Export ratio 60.3%; North
America 50.6%; other regions 9.7%)
Clients
[Wholesalers, agent dealers, mfrs] Mitsui
& Co, Mitsui & Co USA, Echo Inc, Tobu Kioritz Echo, Seibu Kioritz Echo, Tohoku Kioritz Echo, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Oppama Ind, Mitsui & Co, Echo Inc,
Soshin Kogyo, other.
Payment record
Regular
Location
Business
area in Ohme City, adjacent to Tokyo. Office
premises at the caption address are owned and maintained satisfactorily.
Bank References
Mizuho Bank (Ogikubo)
Bank of Yokohama (Shinjuku)
Relations: Satisfactory
FINANCES: (In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
30/11/1007 |
30/11/1006 |
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INCOME STATEMENT |
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Annual Sales |
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73,377 |
69,008 |
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Cost of Sales |
51,436 |
48,866 |
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GROSS PROFIT |
21,941 |
20,141 |
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Selling & Adm Costs |
18,164 |
16,687 |
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OPERATING PROFIT |
3,776 |
3,454 |
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Non-Operating P/L |
-838 |
-574 |
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RECURRING PROFIT |
2,938 |
2,880 |
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NET PROFIT |
1,490 |
1,413 |
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BALANCE SHEET |
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Cash |
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3,414 |
3,324 |
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Receivables |
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13,347 |
13,727 |
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Inventory |
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17,823 |
17,003 |
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Securities, Marketable |
164 |
224 |
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Other Current Assets |
1,929 |
2,185 |
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TOTAL CURRENT ASSETS |
36,677 |
36,463 |
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Property & Equipment |
18,626 |
19,276 |
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Intangibles |
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957 |
1,054 |
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Investments, Other Fixed Assets |
5,431 |
6,239 |
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TOTAL ASSETS |
61,691 |
63,032 |
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Payables |
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11,806 |
11,908 |
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Short-Term Bank Loans |
5,257 |
6,360 |
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Other Current Liabs |
6,311 |
6,366 |
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TOTAL CURRENT LIABS |
23,374 |
24,634 |
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Debentures |
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Long-Term Bank Loans |
2,160 |
1,998 |
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Reserve for Retirement Allw |
3,972 |
4,187 |
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Other Debts |
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129 |
435 |
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TOTAL LIABILITIES |
29,635 |
31,254 |
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MINORITY INTERESTS |
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Common
stock |
5,207 |
5,207 |
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Additional
paid-in capital |
6,273 |
6,273 |
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Retained
earnings |
17,898 |
16,751 |
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Evaluation
p/l on investments/securities |
1,508 |
2,085 |
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Others |
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1,209 |
1,492 |
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Treasury
stock, at cost |
(40) |
(31) |
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TOTAL S/HOLDERS` EQUITY |
32,055 |
31,777 |
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TOTAL EQUITIES |
61,691 |
63,032 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
30/11/1007 |
30/11/1006 |
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Cash
Flows from Operating Activities |
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3,892 |
5,096 |
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Cash
Flows from Investment Activities |
-2,396 |
-5,196 |
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Cash
Flows from Financing Activities |
-1,452 |
-189 |
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Cash,
Bank Deposits at the Term End |
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3,414 |
3,324 |
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ANALYTICAL RATIOS Terms
ending: |
30/11/1007 |
30/11/1006 |
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Net
Worth (S/Holders' Equity) |
32,055 |
31,777 |
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Current
Ratio (%) |
156.91 |
148.02 |
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Net
Worth Ratio (%) |
51.96 |
50.41 |
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Recurring
Profit Ratio (%) |
4.00 |
4.17 |
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Net Profit
Ratio (%) |
2.03 |
2.05 |
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Return
On Equity (%) |
4.65 |
4.45 |
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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%)