MIRA
INFORM REPORT
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Report Date : |
22.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
NIPPON LIGHT METAL CO LTD |
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Registered Office : |
2-2-20 Higashishinagawa Shinagawaku Tokyo 140-8628 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
March 1939 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Aluminum Mfr and only Domestic Aluminum Refiner |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 10,718.5 Million |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
name & address
NIPPON LIGHT METAL CO LTD
REGD NAME: Nippon Keikinzoku KK
MAIN OFFICE: 2-2-20
Higashishinagawa Shinagawaku Tokyo 140-8628 JAPAN
Tel:
03-5461-9211 Fax: 03-5461-9344
URL: http://www.nikkeikin.co.jp/
ACTIVITIES
Aluminum mfr & only domestic aluminum refiner
BRANCHES
Osaka, Nagoya, Fuji, Kitakyushu, Hokkaido, Hamamatsu,
Fukuoka
FACTORY(IES)
Kambara, Tomakomai, Niigata, Funabashi, Shimizu, Nagoya,
Aichi, Mie
OVERSEAS
Thailand (3), China (2), Taiwan
CHIEF EXEC
TAKASHI ISHIYAMA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 647,846 M
PAYMENTS REGULAR CAPITAL Yen
39,085 M
TREND STEADY WORTH Yen
128,997 M
STARTED 1939 EMPLOYES 13,493
COMMENT
INTEGRATED
ALUMINUM MAKER.
FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 10,718.5 MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company was
established jointly by Furukawa Electric Co Ltd and Tokyo Dento (now Tokyo
Electric Power) as an alumina refining company. The firm has since grown into Japan’s only integrated aluminum
mfr, equipped with aluminum refining plant.
It covers integrated operations from refining, smelting to alloy
(billets, slabs, ingots), fabricating (extrusion, rolling, forging &
casting, into products. Has large
market share in a wide range of areas, such as aluminum ingots & alloys,
chemicals, rolled products and construction materials. Emphasis placed on processed materials for
buildings/housing, electronics, refrigerating panels, etc.
In 1952 entered into technical
tie-up with Aluminum Ltd (currently Alcan).
In 1963, technically tied up with Fruehauf Ltd, USA, to form Nippon
Fruehauf Co. In 1996, founded jointly
with Alcan two JV’s to oversee S/E Asian operations: Alcan Nikkei Asia Holdings
(ANAH), and Alcan Nikkei Asia co (ANAC).
In 1999, formed a JV with Daiki Aluminium Industry Co Ltd, Daiki Nikkei
Thai Co Ltd for production of aluminum alloys in Thailand. During the period, absorbed and merged group
firms to integrate group operations.
Clients are widely diversified:
chemicals, electronics, automobile, railways, construction (materials), civil
engineering, machinery & industrial products, agriculture, foods, other
industries.
FINANCIAL INFORMATION
The sales volume for Mar/2008
fiscal term amounted to Yen 647,846 million, a 4.8% up from Yen 618,158 million
in the previous term. The rise was
thanks to the surged production by subsidiaries: Nippon Fruehauf Co’s
lightweight truck cargo bed sales were brisk thanks to stronger exhaust gas
regulations, which eventually raised its sales shares into these makers; Toyo
Aluminium KK’s alumina foils division also boosted products into electronics
makers and food industries. By
divisions, Alumina, Chemicals & Ingots up 41.1% to Yen 156,200 million;
Extruded Products up 0.6% to Yen 79,300 million; Processed Products down 1.4%
to Yen 252,000 million; Construction down 7.4% to Yen 160,300 million. The recurring profit was posted at Yen
11,222 million and the net losses of Yen 10,310 million, respectively, compared
with Yen 25,248 million recurring profit and Yen 12,755 million net profit,
respectively, a year ago. Profitability
declined due to higher costs for fuel and additives such as magnesium,
according to the firm. The firm booked
asset impairment losses at a building-materials subsidiary, Nippon Light Metal,
and wrote off as extraordinary losses.
For
the current term ending Mar 2009 the recurring profit is projected at Yen
14,500 million and net profit at Yen 6,500 million, respectively, on a 1.9%
rise in turnover, to Yen 560,000 million.
Products for automobiles faring well.
Profit margin for aluminum foils improving, thanks to
reorganization. But processed products
for automobiles in slump. Aluminum
alloy plant in Thailand started up for mfg automobile-use products.
The
financial situation is considered FAIR and good for ORDINARY business
engagements. Max credit limit is
estimated at Yen 10,718 million, on 30 days normal terms.
REGISTRATION
Date Registered: Mar
1939
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 1,600
million shares
Issued: 545,126,000
shares
Sum: Yen
39,085 million
Major shareholders (%)
Japan
Trustee Services Bank T (4.3), Master Trust Bank of Japan, T (4.1), Dai-Ichi
Life Ins (3.6), Asahi Life Ins (2.7), Light Metal Education Foundation
(2.7), Nikkei Keiyukai (2.1), Mizuho Corporate
Bank (2.0), Namekawa Keido (2.0), Morgan Stanley
& Co (1.6); foreign owners (22.0)
No. of shareholders: 39,482
Listed on the S/Exchange (s) of
Tokyo, Osaka, Nagoya
Managements
Shigesato
Sato, ch; Takashi Ishiyama, pres; Motoi Kobayashi, s/mgn dir; Tsuyoshi
Nakajima, s/mgn dir; Makoto Fujioka, s/mgn dir; Akira Kato, mgn dir; Mitsuaki Asano, mgn dir; Masao Isamu, dir;
Masato Hironaga, dir
Nothing detrimental is known as to the commercial morality
of executives.
Related companies
Shin Nikkei Co, Toyo Aluminium KK, Nippon Fruehauf Co, other
OPERATION
Activities:
Manufactures alumina & products:
(Sales Breakdown by Divisions):
Alumina, Chemicals & Ingots Div
(18%): alumina, aluminum hydroxides, fine chemicals (organic/inorganic
chlorides, such as caustic soda, chlorine & hydrogen);
Plates/Sheets & Extruded Products
Div (13%): automobile materials, materials for rail- way vehicles, electronic materials;
Processed Products Div (41%):
fabricated products, transport/industrial parts, heat ex- changers, electronics materials, shaped
parts;
Construction Materials Div (28%):
building materials, housing materials, exteriors, other.
Clients
[Mfrs, wholesalers] Japan Capacitor Ind, Nikkeikin Aluminum Core Technology, Mitsubishi Shoji Light Metal Sales, Nikkei Sangyo Co, Toyo Aluminium, Shin Nikkei, other
No. of accounts
3,000
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, wholesalers] Itochu Non-Ferrous Materials, Alcan Aluminium, Japan
Capacitor Ind, Toyo Aluminium, Mitsubishi Shoji Light Metal Sales, other.
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References
Mizuho Corporate Bank (Uchisaiwaicho)
MUFG (Tokyo)
Relations: Satisfactory
Financials
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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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647,846 |
618,158 |
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Cost of Sales |
538,900 |
497,813 |
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GROSS PROFIT |
108,946 |
120,345 |
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Selling & Adm Costs |
90,948 |
89,826 |
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OPERATING PROFIT |
17,998 |
30,519 |
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Non-Operating P/L |
-6,776 |
-5,271 |
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RECURRING PROFIT |
11,222 |
25,248 |
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NET PROFIT |
-10,310 |
12,755 |
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BALANCE SHEET |
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Cash |
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31,287 |
42,433 |
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Receivables |
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174,848 |
192,207 |
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Inventory |
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86,925 |
86,235 |
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Securities, Marketable |
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Other Current Assets |
18,023 |
20,022 |
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TOTAL CURRENT ASSETS |
311,083 |
340,897 |
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Property & Equipment |
179,243 |
184,070 |
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Intangibles |
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6,189 |
5,969 |
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Investments, Other Fixed Assets |
43,958 |
48,527 |
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TOTAL ASSETS |
540,473 |
579,463 |
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Payables |
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108,112 |
129,608 |
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Short-Term Bank Loans |
119,496 |
109,391 |
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Other Current Liabs |
42,937 |
48,437 |
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TOTAL CURRENT LIABS |
270,545 |
287,436 |
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Debentures |
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30,648 |
30,116 |
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Long-Term Bank Loans |
72,996 |
81,714 |
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Reserve for Retirement Allw |
28,145 |
27,857 |
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Other Debts |
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9,142 |
10,229 |
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TOTAL LIABILITIES |
411,476 |
437,352 |
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MINORITY INTERESTS |
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Common
stock |
39,085 |
39,085 |
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Additional
paid-in capital |
25,420 |
24,569 |
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Retained
earnings |
53,911 |
66,928 |
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Evaluation
p/l on investments/securities |
2,219 |
5,449 |
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Others |
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8,484 |
6,486 |
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Treasury
stock, at cost |
(122) |
(406) |
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TOTAL S/HOLDERS` EQUITY |
128,997 |
142,111 |
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TOTAL EQUITIES |
540,473 |
579,463 |
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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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25,018 |
21,397 |
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Cash
Flows from Investment Activities |
-25,051 |
-19,154 |
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Cash
Flows from Financing Activities |
-9,028 |
12,483 |
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Cash,
Bank Deposits at the Term End |
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33,006 |
42,125 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
128,997 |
142,111 |
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Current
Ratio (%) |
114.98 |
118.60 |
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Net
Worth Ratio (%) |
23.87 |
24.52 |
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Recurring
Profit Ratio (%) |
1.73 |
4.08 |
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Net
Profit Ratio (%) |
-1.59 |
2.06 |
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Return
On Equity (%) |
-7.99 |
8.98 |
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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%)