MIRA
INFORM REPORT
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Report Date : |
09.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
NTN CORPORATION |
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Registered Office : |
1-3-17 Kyomachibori Nishiku Osaka 550-0003 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
March 1934 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Bearings |
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 11,116.8 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
NTN CORPORATION
REGD NAME: NTN KK
MAIN OFFICE: 1-3-17 Kyomachibori
Nishiku Osaka 550-0003 JAPAN
Tel:
06-6443-5001 Fax: 06-6443-6986
E-Mail address: info@ntn.co.jp
ACTIVITIES
Mfg of bearings
BRANCHES
Tokyo, Osaka, Nagoya, Kobe, Tochigi, Hiroshima, other (Tot
24)
OVERSEAS
N America (22), Asia/China (24), Europe (14), Australia (2),
Panama, over 19 countries, employees total 12,000
FACTORY(IES)
Kuwana, Iwata, Okayama, Takarazuka, Nagano, Aichi; and 11
subsidiary mfrs
CHIEF EXEC
TATSUO KONDO, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 483,817 M
PAYMENTS REGULAR CAPITAL Yen 42,339 M
TREND STEADY WORTH Yen 215,815 M
STARTED 1934 EMPLOYES 17,306
COMMENT
MFR
SPECIALIZING IN BEARINGS.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 11,116.8 MILLION, 30 DAYS NORMAL TERMS
Forecast (or estimated) figures for 31/03/2008 fiscal term
HIGHLIGHTS
The subject company is one of 3
major bearing mfrs, having strong presence in N America with NTN USA Corp
controlling many subsidiaries engaged in mfg bearings & machinery parts in
US. Maintains about 30% market share in
Japan and 10% of the global market.
Also the highest market share of 38% in the constant-velocity universal
joints for cars, strategic product in global markets. Set up a JV mfg firm in BAWAL Industrial complex, Haryana, India,
with NEI (National Engineering Industries Ltd), to whom the firm has been
rendering mfg technological assistances.
Recent news from Nikkei
30/01/2008 edition: NTN Corp will start producing ultra-large bearings for wind
turbines, having earmarked about Yen 8 billion to bring a factory online in
fiscal 2009 that will specialize in making bearings over 3 meters in
diameter. Construction of the plant in
Ishikawa-Pref will start this spring.
The firm targets about Yen 7 billion in sales in fiscal 2012, mainly to
domestic wind turbine mfrs.
FINANCIAL INFORMATION
The sales volume for Mar/2007
fiscal term amounted to Yen 483,817 million, an 11.3% up from Yen 434,836
million in the previous term. Large
bearings rose thanks to brisk demand for construction and mining machinery amid
the resources development boom. Bearings for hard-disk drives rose more than
50%. Profits improved to make a third
record year. The recurring profit was
posted at Yen 42,210 million and the net profit at Yen 27,014 million,
respectively, compared with Yen 32,816 million recurring profit and Yen 19,550
million, respectively, a year ago.
(Apr/Dec/2007 results): Sales
Yen 396,170 million (up 12.9%), operating profits Yen 36,504 million (up 9.1%),
recurring profit Yen 32,310 million (6.7%), net profit Yen 19,982 million (down
0.7%). (% compared with the
corresponding period a year ago). Large
bearings for were in good demand for construction and wind power industries in
Japan, USA and Europe. In China
bearings for business machines rose. In
Thailand bearings for HDD motors were in brisk demand. Posted extraordinary losses of business
reconstruction expenses and the net profit declined.
For the current term ending Mar
2008 the recurring profit is projected at Yen 47,000 million and the net profit
at yen 28,000 million, respectively, on an 8.5% rise in turnover, to Yen
525,000 million. Bearings for
automobile and machineries will fare well.
Constant-velocity joints continuing growth, led by products bound for
automobiles in North America. Special
loss may emerge on restructuring.
Planning production boost of products for construction machinery wind
power generation and railway firms.
The financial situation is
considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen
11,116.8 million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar 1934
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 800
million shares
Issued: 470,463,527
shares
Sum: Yen
42,339 million
Major shareholders (%)
Japan
Trustee Services T (8.8), Master Trust Bank of Japan T (8.1), Dai-ichi Life Ins
(4.9), Meiji Yasuda Life Ins (4.7), MUFG (4.6), Tokio Marine & Nichido Fire
Ins (2.4), Nippon Life Ins (2.0),
Japan Trustee Services T4 (1.8), Bank of New York Jasdic Treaty (1.7); foreign
owners (22.6)
No. of shareholders
15,909
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Yasunobu
Suzuki, ch; Tatsuo Kondo, pres & CEO; Tadatoshi Kato, s/mgn dir; Osamu Wakisaka,
s/mgn dir; Hirotsugu Mori, s/mgn dir; Naohiko Fujimura, mgn dir; Kenji Okada,
mgn dir; Takeshi Yoshimura, mgn dir; Osamu Kato, dir; Yoshikazu Fukumura, dir; Kazuhiro Shigeta, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
NTN Kongo Seisakusho, other
OPERATION
Activities: Manufactures bearings (64%); constant-velocity
universal joints (30%); precision equipment
(6%).
Overseas sales ratio 57.2%%; N America 25.9%; Europe 16.0%;
Asia, other regions 15.3%)
Clients
[Carmakers,
other mfrs, wholesalers] Honda Motor, Mitsubishi Motors, Sumitomo Heavy
Machinery Ind, Komatsu Ltd, Suzuki Motor, other.
No. of accounts
2,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] JFE Steel, Sanyo Special Steel, Daido
Steel, other
Payment record
Regular
Location
Business
area in Osaka. Office premises at the
caption address are owned and maintained satisfactorily.
Bank References
MUFG (Osaka)
Hyakugo Bank (Osaka)
Relations: Satisfactory
Finances
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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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483,817 |
434,836 |
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Cost of Sales |
378,260 |
340,570 |
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GROSS PROFIT |
105,557 |
94,266 |
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Selling & Adm Costs |
58,764 |
56,621 |
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OPERATING PROFIT |
46,792 |
37,645 |
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Non-Operating P/L |
-4,582 |
-4,829 |
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RECURRING PROFIT |
42,210 |
32,816 |
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NET PROFIT |
27,014 |
19,550 |
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BALANCE SHEET |
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Cash |
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26,085 |
26,058 |
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Receivables |
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114,289 |
98,450 |
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Inventory |
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107,131 |
107,047 |
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Securities, Marketable |
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4,398 |
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Other Current Assets |
32,543 |
30,852 |
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TOTAL CURRENT ASSETS |
280,048 |
266,805 |
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Property & Equipment |
267,441 |
236,431 |
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Intangibles |
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2,928 |
3,240 |
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Investments, Other Fixed Assets |
61,527 |
55,017 |
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TOTAL ASSETS |
611,944 |
561,493 |
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Payables |
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97,019 |
88,366 |
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Short-Term Bank Loans |
103,021 |
91,762 |
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Other Current Liabs |
50,585 |
54,629 |
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TOTAL CURRENT LIABS |
250,625 |
234,757 |
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Debentures |
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40,000 |
40,000 |
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Long-Term Bank Loans |
30,371 |
11,436 |
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Reserve for Retirement Allw |
34,375 |
48,440 |
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Other Debts |
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40,758 |
38,283 |
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TOTAL LIABILITIES |
396,129 |
372,916 |
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MINORITY INTERESTS |
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5,330 |
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Common
stock |
42,339 |
39,599 |
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Additional
paid-in capital |
55,410 |
52,638 |
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Retained
earnings |
106,068 |
86,932 |
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Evaluation
p/l on investments/securities |
7,987 |
10,739 |
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Others |
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4,579 |
(6,076) |
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Treasury
stock, at cost |
(568) |
(585) |
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TOTAL S/HOLDERS` EQUITY |
215,815 |
183,247 |
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TOTAL EQUITIES |
611,944 |
561,493 |
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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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58,485 |
38,907 |
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Cash Flows
from Investment Activities |
-72,185 |
-51,518 |
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Cash
Flows from Financing Activities |
10,921 |
-3,277 |
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Cash,
Bank Deposits at the Term End |
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32,083 |
35,891 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2007 |
31/03/2006 |
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Net
Worth (S/Holders' Equity) |
215,815 |
183,247 |
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Current
Ratio (%) |
111.74 |
113.65 |
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Net
Worth Ratio (%) |
35.27 |
32.64 |
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Recurring
Profit Ratio (%) |
8.72 |
7.55 |
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Net Profit
Ratio (%) |
5.58 |
4.50 |
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Return
On Equity (%) |
12.52 |
10.67 |
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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%)