MIRA INFORM REPORT

 

 

Report Date :

24.06.2011

 

IDENTIFICATION DETAILS

 

Name :

AMADA CO LTD

 

 

Registered Office :

200 Ishida Isehara Kanagawa-Pref 259-1196

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

May 1948

 

 

Com. Reg. No.:

(Kanagawa-Isehara) 020895

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of metal working machinery

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

Yen 6,183.0 Million

Status :

Moderate

Payment Behaviour :

Regular

Litigation :

----

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

Japan

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name

 

AMADA CO LTD

 

 

REGD NAME

 

KK Amada

 

 

MAIN OFFICE

 

200 Ishida Isehara Kanagawa-Pref 259-1196 JAPAN

Tel: 0463-96-1111     Fax: 0463-96-3281

URL:                             http://www.amada.co.jp/

E-Mail address:            info@amada.co.jp

 

 

ACTIVITIES  

 

Mfg of metal working machinery

 

 

BRANCHES   

 

46 (domestic), 200 affiliates overseas

 

 

OVERSEAS   

 

USA (7), Europe (15), China (7), Taiwan, Korea, Thailand (2), Singapore, Malaysia, Vietnam, India (2), Australia (--subsidiaries)

 

 

FACTORIES

 

Fujinomiya, Odawara, Ono, Isehara

 

CHIEF EXEC

 

MITSUO OKAMOTO, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                             A/SALES          Yen 135,979 M

PAYMENTS      REGULAR                     CAPITAL           Yen 54,768 M

TREND             SLOW                          WORTH            Yen 388,667 M

STARTED                     1948                             EMPLOYES      5,870

 

 

COMMENT    

 

MFR OF METAL WORKING MACHINERY.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

           

MAX CREDIT LIMIT: YEN 6,183.0 MILLION, 30 DAYS NORMAL TERMS.

 

                       

                        Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

           

This is a leading and comprehensive metalworking machinery company.  Core of Amada group firms focusing on marketing of machine tools, but in Oct 2003, merged with Amada Machinics, machine tool mfg arm, and restarted production.  Largest maker of sheet metal processing machinery.  Diversified product line to cutting machines, presses and machine tools.  Operations are centered mainly on four businesses focusing on Sheet Metal Machinery, Metal Cutting & Stamping Press Machinery, Structural Steel Machine and Machine Tools.  In addition to the main businesses, the group also provides total solution services that range from computer software and peripheral devices for controlling metalworking machines to toolings & maintenance.  Owns sales & development sites in major cities around the world, with production sites in US, France, Australia and China.  Established US software subsidiary in 1996 as part of efforts in software development.  The firm withdrew from slumping small pressing machine business.  It will set up a sales JV with Aida Engineering in April 2011.  The JV will sell products mfr’d by Aida through Amada’s sales channel.  It intends to concentrate management resources on core businesses.

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 135,979 million, a 39.8% drop from Yen 225,789 million in the previous term.  The global economic crisis created its deepest scars in the mfg sector, leaving economies driven by industrial production reeling the most.  Hit by sharp cuts in capital investment at chipmakers & automakers, the firm had been receiving fewer orders for almost all its products, including mainstay sheet metal and press machines.  Orders from Japanese & European customers have been particularly weak, but those for China & other Asian countries have also been plunging since the autumn.  Exports were hurt by the strong Yen, reducing earnings & profits in Yen terms.  Orders from Japanese & European customers have been particularly weak, but those for China & other Asian countries have also been plunging since the autumn.  By divisions, Sheet Metal Div down 37.8% to Yen 103,700 million; Cutting Machines down 44.1% to Yen 18,200 million; Presses down 37.9% to Yen 5,300 million; Machine Tools down 56.7% to Yen 6,600 million.  The operations plunged into the red to register Yen 4,416 million recurring loss and Yen 3,739 million net losses, respectively, compared with Yen 17,559 recurring loss and Yen 8,488 net profit, respectively, a year ago.  Sales decline & Yen’s sharp rise cut into profits. 

 

(Apr/Dec/2010 results): Sales Yen 109,174 million (up 25.2%), operating profit Yen 440 million (up from Yen 10,052 million loss), recurring profit Yen 1,032 million (up from Yen 6,340 million loss), net profit Yen 50 million (up from Yen 5,587 million loss).  (% & figures compared with the corresponding period a year ago).  Demand for machine tools has rebounded in China and India, with the sales of such equipment as punching machines, which are used to cut holes in sheet metals, picking up steam.

 

For the current term ending Mar 2011 the operations are projected to come back to profitability to post Yen 5,000 million recurring profit and Yen 2,900 million net profit, respectively, on a 21.3% rise in turnover, to Yen 165,000 million.  Sales of mainstay metal processing machinery are increasing in Asia.  Sales are stagnating in Europe under stiffer price competition, but are showing signs of recovery in North America.  Improved operating rates are contributing.  But the negative effect of stronger Yen will erode profit margin in the second half.  Forex losses will be posed.

           

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 6,183.0 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:          May 1948

Regd No.:                                 (Kanagawa-Isehara) 020895

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  550 million shares

Issued:                         403,081,117 shares

Sum:                            Yen 54,768 million

 

Major shareholders (%): Japan Trustee Services Bank (16.8), Master Trust Bank of Japan             (7.4), Mizuho Bank (4.7), Company’s Treasury Stock (3.6), Trust & Custody Services, Trust (3.2), Amada Foundation (2.5), Nippon Life Ins (1.8), Joyo Bank (1.4), Nomura Trust, Trust Acct (1.3), BBC Dexia Investor ST LDN Lending (1.2); foreign owners (34.6)

 

No. of shareholders: 18,847

 

Listed on the S/Exchange (s) of: Tokyo, Osaka

 

Managements: Mitsuo Okamoto, pres & CEO; Toshio Takagi, s/mgn dir; Yoshihiro Yamashita, mgn dir; Tsutomu Isobe, dir; Chikahiro Sueoka, dir; Atsushige Abe, dir; Kota Shibata, dir; Takaya Shigeta, dir

           

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Amada North America, Techno Wasino, Amada Prestech, Amada Cutting, Amada Machine Tool, other           

 

 

OPERATION

 

Activities: Manufactures metal processing machinery & machine tools (--99%), real estate leasing (1%).

 

(Mfg Items):

 

Sheet Metal Processing Machinery: punching machines, laser machines, blending machines, welding machines, shearing machines, general fabrication machines;

 

Metal Cutting & Structural Machines: band saw machines, structural steel machines (drilling machines), environment related products;

 

Stamping Press: presses, consumables;

 

Machine Tools: machines for cutting & shaping metal blocks, used to process precision components, tools & dies, etc.

 

Overseas Sales Ratio (51.6%): North America 13.3%, Europe 19.6%, Asia 16.4%m others 2.3%

 

Clients: [Mfrs, wholesalers] Mitsui & Co, Toshiba Corp, Mitsubishi Electric, Fujitsu Ltd, Nippon Steel, Nissan Motors, other.

            No. of accounts: 1,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Hitachi Metals, Fanuc ltd, Metal One, Amada Soft Services, Techno Washino, NCC Co, THK, other.

 

Payment record: Regular

 

Location: Business area in Isehara City, Kanagawa-Pref.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Shinjuku-Nishiguchi)

SMBC (Tokyo-Chuo)

Relations: Satisfactory

 

 

FINANCES

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

135,979

225,789

 

  Cost of Sales

89,375

131,866

 

      GROSS PROFIT

46,604

93,922

 

  Selling & Adm Costs

-50,511

-75,756

 

      OPERATING PROFIT

-9,654

18,701

 

  Non-Operating P/L

5,238

-1,142

 

      RECURRING PROFIT

-4,416

-17,559

　

      NET PROFIT

-3,739

8,488

BALANCE SHEET

 

 

 

 

  Cash

　

66,610

58,537

 

  Receivables

 

99,536

103,378

 

  Inventory

 

56,270

75,529

 

  Securities, Marketable

28,980

23,049

 

  Other Current Assets

17,045

23,107

 

      TOTAL CURRENT ASSETS

268,441

283,600

 

  Property & Equipment

106,655

103,769

 

  Intangibles

 

7,681

7,211

 

  Investments, Other Fixed Assets

85,401

85,367

 

      TOTAL ASSETS

468,178

479,947

 

  Payables

 

9,142

17,081

 

  Short-Term Bank Loans

11,199

4,772

 

　

 

　

　

 

  Other Current Liabs

33,745

41,436

 

      TOTAL CURRENT LIABS

54,086

63,289

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,097

591

 

  Reserve for Retirement Allw

12,635

12,805

 

  Other Debts

　

10,693

10,626

 

      TOTAL LIABILITIES

79,511

87,311

 

      MINORITY INTERESTS

 

 

 

Common stock

54,768

54,768

 

Additional paid-in capital

163,199

163,199

 

Retained earnings

203,865

211,424

 

Evaluation p/l on investments/securities

(4,060)

(5,722)

 

Others

 

(20,024)

(22,002)

 

Treasury stock, at cost

(9,081)

(9,031)

 

      TOTAL S/HOLDERS` EQUITY

388,667

392,636

　

      TOTAL EQUITIES

468,178

479,947

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

18,213

11,014

 

Cash Flows from Investment Activities

-9,872

-4,580

 

Cash Flows from Financing Activities

1,529

-13,742

　

Cash, Bank Deposits at the Term End

　

83,048

72,126

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

388,667

392,636

 

 

Current Ratio (%)

496.32

448.10

 

 

Net Worth Ratio (%)

83.02

81.81

 

 

Recurring Profit Ratio (%)

-3.25

-7.78

 

 

Net Profit Ratio (%)

-2.75

3.76

 

 

Return On Equity (%)

-0.96

2.16


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.93

UK Pound

1

Rs.72.09

Euro

1

Rs.64.21

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

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%)

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.