MIRA
INFORM REPORT
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Report Date : |
09.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
KURE-NORTON CO LTD |
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Registered Office : |
Kure-Norton Bldg 6F, 2-1-5 Hamamatsucho Minatoku Tokyo
105-0013 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
March 1972 |
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Legal Form : |
Limited Company (Kabushiki
Kaisha) |
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Line of Business : |
Manufacturing of Grinding &
Polishing Wheels |
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 475.3 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
name & address
KURE-NORTON CO LTD
REGD NAME: Kure Norton KK
MAIN OFFICE: Kure-Norton Bldg 6F, 2-1-5 Hamamatsucho Minatoku Tokyo 105-0013 JAPAN
Tel: 03-3432-4123 Fax: 03-5405-7417
URL: http://www.kure-norton.com/
E-Mail address: info@kure-norton.com
ACTIVITIES
Mfg of grinding & polishing
wheels
BRANCHES
Kure, Osaka, Nagoya,
FACTORY(IES)
Kure, Chiba
OFFICER(S)
Susumu Takahashi, ch
ISAMU TAKAHASHI, PRES
Seiichiro Andoh, s/mgn dir
Kenji Niigaya, mgn dir
Noboru Doi, mgn dir
Susumu Takamoto, dir
Yen Amount
In million Yen, unless otherwise
stated
SUMMARY
FINANCES FAIR A/SALES Yen 13,955 M
PAYMENTS REGULAR CAPITAL Yen 2,052 M
TREND STEADY WORTH Yen 6,016 M
STARTED 1972 EMPLOYES 630
COMMENT
MFG OF GRINDING WHEELS.
FINANCIAL SITUATION CONSIDERED
FARI AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 475.3 MILLION, 30 DAYS NORMAL
TERMS
HIGHLIGHTS
The subject company was
established originally in 1910 as an mfr of first man-made abrasives in
Japan. Incorporated in 1972 the firm
started mfg of grinding wheels. Top mfr
of grinding & polishing wheels.In 1978, started mfg zirconia abrasive
off-set wheel & flexible off-set wheel; in 1981, non-woven coated
abrasives; in 1982, vitrified bonded CBN wheel; in 1977, SG wheel; in 2001,
started recycling business by collecting
end-of-life grinding wheels nationwide and recycle them as certified mfr
approved by the Ministry of Environment.
Clients are carmakers, steel mfrs, bearing, and other mfrs nationwide.
FINANCIAL INFORMATION
The sales volume for Dec/2006
fiscal term amounted to Yen 13,995 million, a 3% up from Yen 13,533 million in
the previous term. Diamond mounted
wheels rose both domestically & exports.
The recurring profit was posted at Yen 997 million and the net profit at
Yen 668 million, respectively, compared with Yen 877 million recurring profit
and Yen 643 million net profit, respectively, a year ago.
For the term ended Dec 2007 the
net profit was projected at and believed posted at Yen 650 million, on an
almost similar turnover, at Yen 650 million.
Rising costs of materials and operations are believed eaten into
profits. Final results are yet to be
produced.
The financial situation is
considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 475.3
million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1972
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 16million shares
Issued: 4.1 shares
Sum: Yen 2,052 million
Major shareholders (%)
Kure Grinding Wheel Co Ltd*(57.5),
Saint-Gobain KK (42.5)
No. of shareholders
2
Mfr of grinding wheels &
working safety goods, at the caption address, founded 1943, capital Yen 209.8
million, turnover Yen 2,350 million, operating profit Yen 1,369 million,
recurring profit Yen 1,285 million, net profit Yen 466 million, total assets
Yen 13,979 million, net worth Yen 8,640 million, employees 81, pres Susumu
Takahashi
Consolidated Financials are as
attached. (See SUPPLEMENTS)
Nothing detrimental is known as to
the commercial morality of executives.
OPERATION
Activities: Manufactures grinding
& polishing wheels of vitrified CBN/diamond wheels, resinoid CBN./diamond
wheels, other (100%)
Exports to worldwide destinations
(13%): USA, Europe, Latin America, Africa, China, S/E Asian countries, other.
Products:
Simple cylindrical grinding
wheels; angular grinding wheels; horizontal spindle type surface grinding
wheels, vertical spindle type surface grinding wheels, double disc grinding
wheels, creepfeed grinding wheels, internal grinding wheels, centerless wheels,
tool grinding wheels, mirror finishing wheels, abrasive belt grinding wheels,
semiconductor wafering wheels, printed circuit
board surface grinding wheels, LCD/TFT edging wheels, floor polishing wheels,
other.
Clients
[Steel mills, mfrs] Sumitomo Metal
Ind, JFE Steel, Nippon Steel, Toyota Motors, Nissan Motors, Mazda Motor,
Sumitomo Electric Ind, Daihatsu Motor, Hitachi Metal Ind, Nihon Seiko, other
No. of accounts
1,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Showa Denko,
Saint-Gobain Ceramic Materials, Mitsui & Co, Dainippon Ink & Chemicals, Japan Carlit, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References
SMBC (Tokyo-Chuo)
Mizuho Bank (Hamamatsucho)
Relations: Satisfactory
FINANCES: (In Million Yen)
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Terms
Ending: |
31/12/2007 |
31/12/2006 |
31/12/2005 |
31/12/2004 |
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Annual
Sales |
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14,000 |
13,955 |
13,533 |
12,807 |
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Recur. Profit |
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997 |
877 |
893 |
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Net
Profit |
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650 |
668 |
643 |
637 |
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Total
Assets |
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9,422 |
9,497 |
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Current
Assets |
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5,543 |
5,458 |
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Current
Liabs |
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3,015 |
3,317 |
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Net
Worth |
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6,016 |
5,739 |
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Capital,
Paid-Up |
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2,052 |
2,052 |
2,052 |
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Div.P.Share(¥) |
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63.00 |
100.00 |
55.00 |
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<Analytical
Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth
Rate |
0.32 |
3.12 |
5.67 |
13.81 |
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Current
Ratio |
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.. |
183.85 |
164.55 |
.. |
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N.Worth
Ratio |
.. |
63.85 |
60.43 |
.. |
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R.Profit/Sales |
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.. |
7.14 |
6.48 |
6.97 |
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N.Profit/Sales |
4.64 |
4.79 |
4.75 |
4.97 |
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Return
On Equity |
.. |
11.10 |
11.20 |
.. |
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Notes: Forecast (or estimated)
figures for the 31/12/2006 fiscal term.
SUPPLEMENTS:
CONSOLIDATED FINANCIALS OF KURE
GRINDING WHEEL CO LTD
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FINANCES:
(Consolidated
in million yen) |
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Terms
Ending: |
31/12/2006 |
31/12/2005 |
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INCOME
STATEMENT |
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Annual
Sales |
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15,839 |
15,441 |
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Cost of
Sales |
9,987 |
9,688 |
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GROSS
PROFIT |
5,851 |
5,752 |
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Selling
& Adm Costs |
4,482 |
4,438 |
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OPERATING
PROFIT |
1,369 |
1,314 |
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Non-Operating
P/L |
-84 |
-29 |
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RECURRING
PROFIT |
1,285 |
1,285 |
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NET
PROFIT |
466 |
487 |
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BALANCE
SHEET |
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Cash |
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965 |
554 |
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Receivables |
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3,217 |
3,136 |
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Inventory |
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2,305 |
2,257 |
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Securities,
Marketable |
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Other
Current Assets |
481 |
552 |
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TOTAL
CURRENT ASSETS |
6,968 |
6,499 |
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Property
& Equipment |
5,592 |
5,829 |
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Intangibles |
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161 |
165 |
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Investments,
Other Fixed Assets |
1,258 |
1,266 |
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TOTAL
ASSETS |
13,979 |
13,759 |
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Payables |
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1,357 |
1,176 |
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Short-Term
Bank Loans |
1,310 |
1,865 |
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Other
Current Liabs |
1,234 |
1,141 |
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TOTAL
CURRENT LIABS |
3,901 |
4,182 |
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Debentures |
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662 |
706 |
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Long-Term
Bank Loans |
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27 |
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Reserve
for Retirement Allw |
404 |
453 |
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Other Debts |
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372 |
357 |
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TOTAL
LIABILITIES |
5,339 |
5,725 |
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MINORITY
INTERESTS |
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2,362 |
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Common
stock |
209 |
209 |
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Additional
paid-in capital |
259 |
259 |
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Retained
earnings |
5,393 |
4,947 |
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Evaluation
p/l on investments/securities |
243 |
252 |
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Others |
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2,536 |
4 |
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Treasury
stock, at cost |
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TOTAL
S/HOLDERS` EQUITY |
8,640 |
5,671 |
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TOTAL
EQUITIES |
13,979 |
13,759 |
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CONSOLIDATED
CASH FLOWS |
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Terms ending: |
31/12/2006 |
31/12/2005 |
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Cash
Flows from Operating Activities |
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1,641 |
1,855 |
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Cash
Flows from Investment Activities |
-447 |
-872 |
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Cash
Flows from Financing Activities |
-796 |
-837 |
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Cash, Bank
Deposits at the Term End |
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965 |
554 |
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ANALYTICAL
RATIOS Terms ending: |
31/12/2006 |
31/12/2005 |
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Net
Worth (S/Holders' Equity) |
8,640 |
5,671 |
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Current
Ratio (%) |
178.62 |
155.40 |
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Net
Worth Ratio (%) |
61.81 |
41.22 |
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Recurring
Profit Ratio (%) |
8.11 |
8.32 |
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Net
Profit Ratio (%) |
2.94 |
3.15 |
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Return
On Equity (%) |
5.39 |
8.59 |
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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%)