MIRA
INFORM REPORT
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Report Date : |
15.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
MITSUBISHI STEEL MFG CO LTD |
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Registered Office : |
Harumi Park Bldg, 3-2-22 Harumi Chuoku Tokyo 104-8550 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
December 1949 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Spring Steel |
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 3,977.1 million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
name & address
MITSUBISHI STEEL
MFG CO LTD
REGD NAME: Mitsubishi Seiko KK
MAIN OFFICE: Harumi Park Bldg, 3-2-22 Harumi Chuoku Tokyo
104-8550 JAPAN
Tel:
03-3536-2111 Fax: 03-3533-2271
* The given address is its Chiba Works
URL: http://www.mitsubishisteel.co.jp/
E-Mail address: web.master@mitsubishisteel.co.jp
ACTIVITIES
Mfg of spring steel
BRANCHES
Nagoya, Osaka, Fukuoka, Hiroshima
OVERSEAS
China (2), USA, Cebu, Manila, Thailand, Ningbo
FACTORY(IES)
Chiba, Utsunomiya, Hirota, Muroran
CHIEF EXEC
AKIO KATO, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 133,573 M
PAYMENTS REGULAR CAPITAL Yen 9,924 M
TREND STEADY WORTH Yen 51,072 M
STARTED 1949 EMPLOYES 4,607
COMMENT
MFR OF
STEEL SPRING & STEEL BARS.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 3,977.1MILLION, 30 DAYS NORMAL TERMS
Forecast
(or estimated) figures for 31/03/2009 fiscal term
HIGHLIGHTS
This
is a major mfr of specialty steel & precision spring for use in high-tech
products. Also expanding fabricating
& assembly operations. The firm
origins traced back to 1919 when Nagasaki Steel Works of present Mitsubishi
Heavy Ind separated. Mainline includes
special steel & forged & cast steel products. Production is increased in China. Increasing R&D personnel for broadening product lineup of
precision cast parts.
FINANCIAL INFORMATION
The
sales volume for Mar/2008 fiscal term amounted to Yen 133,573 million, a 10% up
from Yen 121,444 million in the previous term.
Earnings rose at all divisions, spurred by robust demand from automakers
& construction industries, scoring the all-time high. Actively expanded mfg operations overseas
contributed to decrease higher costs of materials. By Divisions, Springs up 7.4% to Yen 1,556 million, Formed &
Fabricated Div up 64% to Yen 1,780 million, due to increased overseas
production; Specialty Steel up 14.1% to Yen 1,067 million; Machinery &
Systems up 58.7% to Yen 1,336 million.
The recurring profit was posted at Yen 13,075 million and the net profit
at Yen 7,284 million, respectively, compared with Yen 10,937 million recurring
profit and Yen 6,055 million net profit, respectively, a year ago.
(Apr/Jun/2008
results): Sales Yen 35,743 million (up 14%), operating profit Yen 3,905 million
(up 60%), recurring profit Yen 3,778 million (up 52%), net profit Yen 1,773
million (up 25%). (% compared with the
corresponding period a year ago).
For
the current term ending Mar 2009 the recurring profit is projected at Yen
13,500 million and the net profit at Yen 7,500 million, on a 4.8% rise in
turnover, to Yen 140,000 million.
Automotive spring business will benefit from contribution from plant in
China. Starting high-pressure,
high-temperature waste-treatment business without releasing hazardous
materials.
The financial situation
is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at
Yen 3,977.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Dec 1949
Legal
Status: Limited Company (Kabushiki Kaisha)
Authorized:
360 million shares
Issued: 156,556,683 shares
Sum: Yen 9,924 million
Major shareholders (%): Mitsubishi Heavy Industries
(6.3), Meiji Yasuda Life Ins (4.7), MUFG (4.5), Japan Trustee Services T (3.6),
Mitsubishi UFJ Trust (3.6), Mitsubishi Corp (3.5), Master Bank of Japan T
(2.7), Tokio Marine & Nichido Fire Ins (2.7), Company’s Kyoeikai Assn
(1.5), Nippon Steel (1.4); foreign owners (10.1)
No. of shareholders: 14,096
Listed
on the S/Exchange (s) of: Tokyo
Managements: Akio Kato, pres; Yutaka Nishizawa,
mgn dir; Nobumichi Ohno, mgn dir; Masayuki Kikawa, mgn dir; Hideyuki Miyana,
mgn dir; Masuda Nobuyuki, dir; Masayuki Takashima, dir; Motoyuki Sato, dir;
Yoshiaki Fujisawa, dir
Nothing detrimental is known as
to the commercial morality of executives.
Related companies
Mitsubishi Steel Muroran Inc,
Mitsubishi Nagasaki Machinery Mfg, MSM Thailand, other.
OPERATION
Activities: Manufactures Special Steel bars (48%),
steel springs (27%), formed &
fabricated products (14%), machinery & systems (9%), others (2%).
Products include: springs,
construction machinery parts, automotive precision parts, steel castings, steel
forgings, magnetic materials, alloy powders, hot-rolled special steel bars,
others
Clients
[Mfrs, wholesalers] Mitsubishi Fuso Truck & Bus, Metal One, Nakagawa Special Steel Corp, Taiyo Trading, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers
[Mfrs, wholesalers] Mitsubishi Steel Muroran Inc, PT Indo Spring, MSM Thailand, 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)
Mitsubishi UFJ Trust Bank (H/O)
Relations: Satisfactory
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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133,573 |
121,444 |
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Cost of Sales |
108,440 |
98,955 |
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GROSS PROFIT |
25,132 |
22,488 |
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Selling & Adm Costs |
11,523 |
11,273 |
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OPERATING PROFIT |
13,609 |
11,215 |
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Non-Operating P/L |
-534 |
-278 |
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RECURRING PROFIT |
13,075 |
10,937 |
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NET PROFIT |
7,284 |
6,055 |
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BALANCE SHEET |
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Cash |
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4,424 |
5,754 |
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Receivables |
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32,734 |
32,681 |
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Inventory |
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17,290 |
15,975 |
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Securities, Marketable |
500 |
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Other Current Assets |
3,184 |
3,667 |
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TOTAL CURRENT ASSETS |
58,132 |
58,077 |
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Property & Equipment |
34,149 |
35,278 |
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Intangibles |
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372 |
338 |
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Investments, Other Fixed Assets |
23,392 |
27,114 |
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TOTAL ASSETS |
116,045 |
120,807 |
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Payables |
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28,099 |
28,370 |
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Short-Term Bank Loans |
10,275 |
18,818 |
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Other Current Liabs |
9,924 |
9,120 |
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TOTAL CURRENT LIABS |
48,298 |
56,308 |
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Debentures |
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2,602 |
2,602 |
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Long-Term Bank Loans |
9,069 |
8,361 |
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Reserve for Retirement Allw |
2,580 |
2,983 |
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Other Debts |
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2,423 |
3,700 |
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TOTAL LIABILITIES |
64,972 |
73,954 |
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MINORITY INTERESTS |
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Common
stock |
9,924 |
9,924 |
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Additional
paid-in capital |
3,605 |
3,605 |
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Retained
earnings |
30,246 |
24,212 |
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Evaluation
p/l on investments/securities |
3,721 |
5,720 |
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Others |
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3,634 |
3,435 |
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Treasury
stock, at cost |
(58) |
(44) |
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TOTAL S/HOLDERS` EQUITY |
51,072 |
46,852 |
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TOTAL EQUITIES |
116,045 |
120,807 |
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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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12,683 |
8,626 |
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Cash
Flows from Investment Activities |
-4,410 |
-2,930 |
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Cash
Flows from Financing Activities |
-9,103 |
-4,807 |
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Cash,
Bank Deposits at the Term End |
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4,924 |
5,751 |
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ANALYTICAL RATIOS Terms
ending: |
31/03/2008 |
31/03/2007 |
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Net
Worth (S/Holders' Equity) |
51,072 |
46,852 |
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Current
Ratio (%) |
120.36 |
103.14 |
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Net
Worth Ratio (%) |
44.01 |
38.78 |
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Recurring
Profit Ratio (%) |
9.79 |
9.01 |
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Net
Profit Ratio (%) |
5.45 |
4.99 |
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Return
On Equity (%) |
14.26 |
12.92 |
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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.48.68 |
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UK Pound |
1 |
Rs.84.37 |
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Euro |
1 |
Rs.65.70 |
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%)