MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
RYOBI LTD |
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Registered Office : |
762 Mesakicho Fuchu City Hiroshima-Pref |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
December, 1943 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufactures Die Castings, Printing Press, Power
Tools, Other: |
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 5,867.0 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
Name
RYOBI LTD
REGD NAME
Ryobi KK
MAIN OFFICE
762 Mesakicho Fuchu City Hiroshima-Pref JAPAN
Tel: 0847-41-1111 Fax:
0847-43-6111
* Tokyo Office at: Toranomon Central Bldg 4F, 1-7-1 Nishishimbashi
Minatoku Tokyo, as given (Tel: 03-3927-5541; Fax: 03-3927-2906)
URL: http://www.ryobi-group.co.p/
E-Mail address: (thru the URL to
each division)
ACTIVITIES
Mfg of die castings, printing press, power tools
BRANCH(ES)
Tokyo (2), Osaka, Sapporo, Sendai, Hamamatsu, Nagoya, Toyama, Hiroshima,
Fukuoka
OVERSEAS
Ryobi Die Casting (USA) Inc; Ryobi Aluminum (UK) Ltd; Ryobi Die Casting
Dalian Co Ltd.
FACTORY(IES)
Hiroshima (3), Shizuoka
CHIEF EXEC
SUSUMU YOSHIKAWA, PRES
Yen Amount:
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 216,180 M
PAYMENTS REGULAR CAPITAL Yen 18,472 M
TREND STEADY WORTH Yen 77,718 M
STARTED 1943 EMPLOYES 5,830
COMMENT
LARGEST MFR OF DIE
CASTINGS.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 5,867.0 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
This is the largest mfr of die castings mainly for automakers. Originally set up in 1943 as die cast airplane parts maker for Mitsubishi Electric Hiroshima plant. After 1960, expanded into finished products using die cast pasts: power tools, printing machining and fishing tackle. Printing machines are now major income sources. Established new plant in Mexico to boost output of die castings bound for US, aiming to startup in Aug 2008, following operation start in China in preceding term.
FINANCIAL INFORMATION
The sales volume for Mar/2008 fiscal term amounted to Yen 216,180 million, a 5.6% up from Yen 204,671 million in the previous term. Die castings for automakers in Japan and USA were robust, up 7.2% to Yen 148,595 million. Materials cost-ups were compensated by the steep sales growth. Printing presses exports fared well into Europe, USA and Asia, up 2.8% to Yen 40,963 million, although domestic demand sluggish. Power tools were also in good demand, up 6.5% to Yen 26,621 million. Region-wise, domestic sales up 4.1% to Yen 147,210 million, overseas up 9.1% to Yen 68,969 million. The recurring profit was posted at Yen 13,786 million and the net profit at Yen 8,207 million, respectively, compared with Yen 16,408 million recurring profit and Yen 9,877 million net profit, respectively, a year ago. Profits continued to fall burdened by heavier depreciation costs & higher raw material prices.
(Apr/Jun/2008 results): Sales Yen 50,596 million (down 1.97%), operating profit Yen 1,528 million (down 53.15%), recurring profit Yen 1,679 million (down 51.93%), net profit Yen 1,044 million (down 49.82%). (% compared with the corresponding period a year ago). Die casting Div up 3.4% to Yen 36,141 million, thanks to increased demand from domestic carmakers, but sales at other Divisions were down by slow economic activity. Higher materials costs continued to eat into profits.
For the current term ending Mar 2009 the recurring profit is projected at Yen 10,000 million and the net profit at Yen 5,900 million, on an almost similar turnover, at Yen 216,500 million. Die castings and printers continue growth. Foreign Exchange Rate is assumed at Yen 100/$1. Yen 1 rise will cause operating profit to drop by Yen 30 million. Profits will continue to shrink by higher fuel oil and raw materials prices.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max credit limit is estimated at Yen 5,867.0
million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1943
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 500
million shares
Issued:
171,230,715 shares
Sum: Yen 18,472 million
Major shareholders (%)
Japan Trustee Services T (6.7), Meiji Yasuda Life Ins(5.4), Dai-ichi Life Ins (4.7), Nippon Life Ins (4.5), MUFG (3.8), Master Trust Bank of Japan T (3.9), Urakami Foundation (3.0), Employees S/Holding Assn (3.0), Company’s Treasury Stock (2.6); foreign owners (17.0) .
No. of shareholders
10,658
Listed on the S/Exchange (s) of
Tokyo
Managements
Hiroshi Urakami, ch & CEO; Susumu Yoshikawa, pres & COO; Takao Tanaka, dir; Takashi Yokoyama, dir; Koji Ishii, dir; Akira Urakami, dir; Kenjiro Suzuki, dir
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Manufactures die
castings, printing press, power tools, other:
(Sales breakdown
by divisions):
Die Castings
(69%): die casting products, including cylinder blocks & transmission
cases, aluminum castings;
Printing Machines
(19%): offset printing presses & peripherals;
Housing Appliances (12%): electrical power tools, door closers, air-conditioning Controllers, lawn & gardening equipment, hinges, architecture’s hardware, other;
Overseas sales
ratio (30.9%): N America 14.2%, Europe 10.7%, others 6.0%.
Clients
[Automakers, other makers] Honda Motor, Suzuki Motor, Jatco, Ryobi
Hambai, Mitsubishi Motors, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Ryobi Mirasaka, Ryobi Mitsugi, other..
Payment record: Regular
Location: Business area in Hiroshima. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
MUFG (Marunouchi)
SMBC (Tokyo-Chuo)
Relations: Satisfactory
FINANCES
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2008 |
31/03/2007 |
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INCOME STATEMENT |
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Annual Sales |
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216,180 |
204,671 |
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Cost of Sales |
177,529 |
164,519 |
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GROSS PROFIT |
38,651 |
40,151 |
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Selling & Adm Costs |
24,416 |
23,798 |
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OPERATING PROFIT |
14,235 |
16,353 |
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Non-Operating P/L |
-449 |
55 |
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RECURRING PROFIT |
13,786 |
16,408 |
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NET PROFIT |
8,207 |
9,877 |
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BALANCE SHEET |
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Cash |
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8,925 |
17,004 |
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Receivables |
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43,292 |
47,130 |
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Inventory |
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41,855 |
38,398 |
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Securities, Marketable |
3,514 |
2,908 |
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Other Current Assets |
4,585 |
5,134 |
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TOTAL CURRENT ASSETS |
102,171 |
110,574 |
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Property & Equipment |
77,163 |
73,028 |
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Intangibles |
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2,254 |
1,990 |
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Investments, Other Fixed Assets |
14,383 |
16,936 |
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TOTAL ASSETS |
195,971 |
202,528 |
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Payables |
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43,570 |
49,956 |
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Short-Term Bank Loans |
27,493 |
24,114 |
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Other Current Liabs |
18,003 |
24,987 |
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TOTAL CURRENT LIABS |
89,066 |
99,057 |
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Debentures |
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Long-Term Bank Loans |
17,663 |
14,217 |
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Reserve for Retirement Allw |
6,320 |
6,549 |
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Other Debts |
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5,203 |
6,948 |
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TOTAL LIABILITIES |
118,252 |
126,771 |
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MINORITY INTERESTS |
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Common
stock |
18,472 |
18,472 |
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Additional
paid-in capital |
23,750 |
23,750 |
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Retained
earnings |
39,234 |
34,043 |
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Evaluation
p/l on investments/securities |
3,094 |
5,114 |
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Others |
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(5,407) |
(4,891) |
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Treasury
stock, at cost |
(1,425) |
(731) |
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TOTAL S/HOLDERS` EQUITY |
77,718 |
75,757 |
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TOTAL EQUITIES |
195,971 |
202,528 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2008 |
31/03/2007 |
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Cash
Flows from Operating Activities |
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7,384 |
22,119 |
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Cash
Flows from Investment Activities |
-18,649 |
-17,702 |
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Cash
Flows from Financing Activities |
3,376 |
-3,120 |
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Cash,
Bank Deposits at the Term End |
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10,138 |
17,611 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007i |
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Net
Worth (S/Holders' Equity) |
77,718 |
75,757 |
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Current
Ratio (%) |
114.71 |
111.63 |
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Net
Worth Ratio (%) |
39.66 |
37.41 |
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Recurring
Profit Ratio (%) |
6.38 |
8.02 |
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Net
Profit Ratio (%) |
3.80 |
4.83 |
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Return
On Equity (%) |
10.56 |
13.04 |
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FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 42.37 |
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UK Pound |
1 |
Rs. 84.01 |
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Euro |
1 |
Rs. 65.96 |
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%)