MIRA
INFORM REPORT
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Report Date : |
11.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
MITSUBISHI RAYON CO LTD |
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Registered Office : |
1-6-41 Konan Minatoku Tokyo 108-8506 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
June 1950 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of Acrylic Fiber, MMA
Resins |
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 12,778.1 million |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
name
MITSUBISHI RAYON
CO LTD
REGD NAME
Mitsubishi Rayon KK
MAIN OFFICE
1-6-41 Konan Minatoku Tokyo 108-8506 JAPAN
Tel: 03-5495-3100 Fax:
03-5494-3184
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of acrylic fiber, MMA resins
BRANCHES
Osaka, Nagoya, Toyohashi, Toyama, other
OVERSEAS
USA, Thailand, Hong Kong, Shanghai
FACTORY(IES)
Otake, Toyohashi, Toyama, Yokohama
CHIEF EXEC
MASANAO KANBARA, PRES
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 418,529 M
PAYMENTS REGULAR CAPITAL Yen 53,229 M
TREND STEADY WORTH Yen 215,819 M
STARTED 1950 EMPLOYES 7,699
COMMENT
MFR OF
ACRYLIC FIBER, MMA RESINS, OTHERS.
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 12,778.1MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
The subject company is the largest mfr of acrylic fiber, with origin dating back to 1933 as the Japan’s first maker of rayon staples. Top-ranked in MAA resin mfg & third ranked in carbon fiber products. The firm recently announced to pull out of acrylic spinning business, by selling a spinning subsidiary in Indonesia. The exit is prompted by slumping demand worldwide. Higher materials & fuel oil costs are again quoted as undermining profits. By next April, the firm will sell its 97.3% stake in PT Vonex Indonesia to the subsidiary’s second-largest shareholder. (Excerpt from Nikkei Business Daily dated 30/09/2008).
FINANCIAL INFORMATION
The sales volume for Mar/2000 fiscal term amounted to Yen 418,529 million, a 0.4% up from Yen 417,027 million in the previous term. Demand rose particularly in Thailand with production increased. By divisions, Chemicals & Resins up 0.7% to Yen 186,968 million; Acryl fibers, AN & derivatives remained flat at Yen 73,737 million, hit by higher Yen for exports; Carbon Fibers & Compound materials up 17.0% to Yen 46,790 million. The recurring profit was posted at Yen 33,868 million and the net profit at Yen 14,274 million, respectively, compared with Yen 58,471 million recurring profit and Yen 31,273 million net profit, respectively, a year ago. Profits deteriorated due to higher materials & fuel oil prices added to sharp rise of the Yen against foreign currencies.
(Apr/Jun/2008 results): Sales Yen 91,336 million (down 8.7%), operating profit Yen 2,341 (down 81%), recurring profit Yen 3,513 million (down 73%), net profit Yen 1,223 million (down 81%). (% compared with the corresponding period a year ago). Higher Yen and materials costs continued to hurt revenues & profits.
For the current term ending Mar 2009 the recurring profit is projected at Yen 6,000 million and the net profit at Yen a minimum amount post-taxes, on 3.2% fall in turnover, to Yen405,000 million. The firm revised downward the forecasts from the initial ones assumed in May/2008 from: Sales Yen 430,000 million, recurring profit 23,000 million, net profit Yen 9,500 million, quoting sharp rise in the prices of fuel oil & raw materials, which led to fears of an economic downturn, thus causing demand for the products to weaken and the earnings to deteriorate severely.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 12,778.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Jun 1950
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
1,200 million shares
Issued:
599,997,820 shares
Sum: Yen 53,229 million
Major shareholders (%)
Japan Trustee Services T (5.2),
Company’s Treasury Stock (4.6), MUFG (3.6), Master Trust Bank of Japan T (3.4),
Meiji Yasuda Life Ins (3.4), Zenkyoren (3.3), Nippon Life ins (2.2), Mitsubishi
UFJ Trust (1.7), Mitsubishi Heavy Ind (1.6); foreign owners (20.9)
No. of shareholders
58,304
Listed on the S/Exchange (s) of
Tokyo, Osaka
Managements
Yoshiyuki Sumeragi, ch; Masanao
Kanbara, pres; Takumi Ebikai, dir; Shoun Tajiri, dir; Akio Kataoka, dir;
Yasuaki Tatebayashi, dir; Akira Nakata, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies
Mitsubishi Rayon Engineering, Mitsubishi Rayon America Inc,
other
OPERATION
Activities: Manufactures acrylic fiber, MAA resins,
other chemical products:
(Sales Breakdown by Divisions)
Chemicals & Resins Div (45%): MAA
monomer, functional esters, fine chemicals, organic solvents, thiodipropionic
acid, coating materials, plastic modifier, ABS resin, solid surface materials,
rod lens arrays, prism sheets;
Acryl Fibers, AN & Derivatives Div (18%): acrylic
fibers, acetate fibers & tow, polyester fibers, polypropylene fibers,
textiles, artificial suede, carpets, fabric & clothes;
Carbon Fibers & Compound Materials Div (11%): carbon
fiber, hollow fiber membrane elements. Water purifiers, water treatment
systems, engineering/construction materials, large water tanks,
polysaccharides;
Acetate Fibers, other Div (26&): acetate
fiber, golf shaft, other.
Overseas Sales Ratio (47.3%): Asia 33.4%, others 13.8%.
Clients
[Mfrs, wholesalers] Mitsubishi
Corp, Grafil Inc, Marubeni Corp, Mitsubishi UFJ Factor, Marubeni Plax Corp,
other.
No. of
accounts: 1,000 – 2,000
Domestic
areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Mitsubishi
Rayon Engineering, Ryoko Co, Mitsubishi Corp, Mitsui Chemical, Idemitsu Kosan,
Daicel Chemical Ind, other.
Payment
record: Regular
Location: Business
area in Tokyo. Office premises at the
caption address are leased and maintained satisfactorily.
Bank References
MUFG (H/O)
Norin Chukin Bank (H/O)
Relations: Satisfactory
Note
Mitsubishi Rayon Co announced Tuesday afternoon that it will acquire British chemical producer Lucite International.
Mitsubishi will invest US$1.6 billion, about Yen 157 billion, to purchase Lucite Shares owned by British investment fund Chartehouse Capital Partners and others, and make Lucite International a wholly owned subsidiary.
Mitsubishi Rayon plans to completer the acquisition process by the end of January 2009.
The said acquisition will give Mitsubishi Rayon, ranked fourth in the production of aceylic monomers, the largest share of the growing market and put it far ahead of No. 2 player Rohm & Haas co (USA)
FINANCES: (In Million Yen)
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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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418,529 |
417,027 |
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Cost of Sales |
320,815 |
307,808 |
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GROSS PROFIT |
97,713 |
109,219 |
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Selling & Adm Costs |
60,205 |
49,553 |
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OPERATING PROFIT |
37,508 |
59,665 |
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Non-Operating P/L |
-3,540 |
-1,194 |
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RECURRING PROFIT |
33,968 |
58,471 |
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NET PROFIT |
14,274 |
31,273 |
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BALANCE SHEET |
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Cash |
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17,361 |
10,711 |
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Receivables |
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81,456 |
96,081 |
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Inventory |
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58,864 |
52,678 |
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Securities, Marketable |
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Other Current Assets |
19,578 |
16,243 |
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TOTAL CURRENT ASSETS |
177,259 |
175,713 |
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Property & Equipment |
173,481 |
170,074 |
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Intangibles |
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8,811 |
9,433 |
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Investments, Other Fixed Assets |
91,989 |
94,358 |
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TOTAL ASSETS |
451,540 |
449,578 |
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Payables |
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61,923 |
77,119 |
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Short-Term Bank Loans |
42,953 |
37,966 |
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Other Current Liabs |
33,038 |
49,024 |
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TOTAL CURRENT LIABS |
137,914 |
164,109 |
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Debentures |
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30,000 |
10,000 |
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Long-Term Bank Loans |
35,711 |
17,320 |
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Reserve for Retirement Allw |
27,659 |
28,658 |
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Other Debts |
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4,437 |
3,778 |
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TOTAL LIABILITIES |
235,721 |
223,865 |
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MINORITY INTERESTS |
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Common
stock |
53,229 |
53,229 |
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Additional
paid-in capital |
28,796 |
28,793 |
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Retained
earnings |
122,706 |
114,700 |
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Evaluation
p/l on investments/securities |
5,753 |
16,150 |
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Others |
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15,823 |
13,191 |
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Treasury
stock, at cost |
(10,488) |
(350) |
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TOTAL S/HOLDERS` EQUITY |
215,819 |
225,713 |
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TOTAL EQUITIES |
451,540 |
449,578 |
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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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31,823 |
52,168 |
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Cash
Flows from Investment Activities |
-50,839 |
-41,153 |
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Cash Flows
from Financing Activities |
26,494 |
-10,150 |
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Cash,
Bank Deposits at the Term End |
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17,361 |
10,701 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
215,819 |
225,713 |
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Current
Ratio (%) |
128.53 |
107.07 |
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Net
Worth Ratio (%) |
47.80 |
50.21 |
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Recurring
Profit Ratio (%) |
8.12 |
14.02 |
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Net
Profit Ratio (%) |
3.41 |
7.50 |
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Return
On Equity (%) |
6.61 |
13.86 |
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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.47.32 |
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UK Pound |
1 |
Rs.74.20 |
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Euro |
1 |
Rs.60.73 |
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%)