MIRA INFORM REPORT

 

 

Report Date :           

09.03.2011

 

IDENTIFICATION DETAILS

 

Name :

SODICK CO LTD

 

 

Registered Office :

3-12-1 Nakamachidai Tsuzukiku Yokohama 224-8522

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

August 1976

 

 

Com. Reg. No.:

(Yokohama-Tsuzukiku) 020736

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer of NC electro dischargers   

 

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 761.3 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 – December 31, 2010

 

Country Name

Previous Rating

                   (30.09.2010)                  

Current Rating

(31.12.2010)

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

 

SODICK CO LTD

 

 

REGD NAME 

 

Sodick KK

 

 

MAIN OFFICE

 

3-12-1 Nakamachidai Tsuzukiku Yokohama 224-8522 JAPAN

Tel: 045-942-3111     Fax: 045-943-5835

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

E-Mail address:                        (thru the URL)

 

 

ACTIVITIES

 

Mfg of NC electro dischargers   

 

 

BRANCHES   

 

Sendai, Saitama, Nagoya, Osaka, Kyoto, Osaka, other (Tot 14)

 

 

OVERSEAS   

 

China (2), Singapore, Europe, Singapore, other

 

 

FACTORIES  

 

Fukui; Suzhou (China), Bangkok (Thailand)

 

 

CHIEF EXEC

 

KATSUHIDE FUJIWARA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 　A/SALES       Yen 36,761 M

PAYMENTS      REGULAR         　CAPITAL        Yen 20,775 M

TREND             SLOW              　WORTH         Yen 23,848 M

STARTED                     1976                 　EMPLOYES   2,671

 

 

COMMENT

 

MFR OF NC MACHINE TOOLS. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 761.3 MILLION, 30 DAYS NORMAL TERMS

 

 

                        Forecast (or estimated) figures for 30/03/2011 fiscal term

 

 

HIGHLIGHTS

 

The subject company is pioneer & top-ranked mfr of NC electro dischargers.  Ranked second in the world.  Maintains strong market share in linear motor-driven type lector dischargers.  Has mfg bases in Suzhou (China) and Thailand.  Now under restructuring process.  About 100 workers retired in Mar 2010 under early retirement scheme.  Transferred the function at Yokohama office to the headquarter plant office in Fukui-Pref, except for the financial section.  It will reduce annual costs by approx Yen 1 billion.  Production of molding machines will enter a full-fledged growth phase at its plant in Amoy, China.  The firm intends to shift to its production to overseas, to reduce exchange risks.  It will market linear motors manufactured in-house for internal use to outside firms.

 

           

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 36,761 million, a 32.6% down from Yen 54,533 million in the previous term.  The global economic downturn affected.  Absent in improvements in employment and corporate earnings, the operating environment remained under intense pressure.  Exports decreased substantially because of a decline in demand and the appreciation of the Yen.  By divisions, Machine Tools down 36.9% to Yen 22,631 million; Industrial Machinery down 33.3% to Yen 8,142 million; Precision Metals up 0.5% to Yen 3,724 million, as demand increased for precision connectors from auto makers due to increased sales of hybrid cars; Food Machinery up 2.4% to Yen 2,067 million.  The operations continued in the red to register Yen 3,669 million recurring loss and Yen 3,669 million net losses, respectively, compared with Yen 8,527 million recurring loss and Yen 8,527 million net losses, respectively, a year ago.

 

(Apr/Dec/2010 results): Sales Yen 39,394 million (up 55.2%), operating profit Yen 4,010 million (previously Yen 2,904 million loss), recurring profit Yen 2,379 million (previously Yen 3,271 million loss), net profit Yen 3,290 million (previously Yen 3,135 million loss).  (% & figures compared with the corresponding period a year ago).  The upturn was supported by steady growth in the emerging economies of China and S/E Asia, which contributed to rising exports.  The machine tools and industrial machinery industries, of which the Group is a part, saw steady capital investment demand driven by favorable conditions in China, unchanged from the first half of the fiscal year, as well as positive signs emerging in the US automotive industry and pointers to a recovery in Europe.

 

For the current term ending Mar 2011 the operations are expected to come back to profitability with the recurring profit projected at Yen 3,100 million and the net profit at Yen 4,000 million, respectively, on a 42.8% rise in turnover, to Yen 52,500 million.  Sales of electric discharge machines are increasing sharply in greater China, and are recovering in Japan.  Operating profit will emerge, thanks to improved plant operating rate and review of production lines.  Prior period corporate tax will be refunded.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 761.3 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:　Aug 1976

Regd No.:            (Yokohama-Tsuzukiku) 020736

Legal Status:      Limited Company (Kabushiki Kaisha)

Authorized:         150 million shares

Issued:                53,432,510 shares

Sum:                   Yen 20,775 million

 

Major shareholders (%): Company’s Treasury Stock (7.3), Toshihiko Furukawa (4.3),  Hideo Ohmura (1.9), Customers’ Kyoeikai Assn (1.7), SMBC (1.5), Masaki Suzuki (1.3), Hokuriku Bank (1.3), Employees’ S/Holding Assn (1.0), Hokkoku Bank (0.9), Yaeko Ohmura (0.8); foreign owners 4.5)

 

No. of shareholders: 15,659

 

Listed on the S/Exchange (s) of: Tokyo (Second Section)

 

Managements: Toshihiko Furukawa, ch; Katsuhide Fujiwara, pres; Akio Hosaka, v pres;  Keisuke Takagi, s/mgn dir; Yuji Kaneko, s/mgn dir; Takashi Matsui, mgn dir; Kosaku Karato, mgn dir; Ken’ichi Furukawa, mgn dir; Mitsuhiro Kubo, dir; Shuji Okazaki, dir

 

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

 

Related companies: Sodick Plastic, other

 

OPERATION

           

Activities: Manufactures NC machine tools (61%), industrial machinery (22%), Precision metal molds & formed products (10%), food machinery (6%), others (1%)

 

Overseas Sales Ratio (53.0%): Americas 6.9%, Europe 8.8%, Asia, others (37.3%)

 

(Mfg items): CNC die-sinker EDM, CNC wire EDM, CNC high-speed small hole drilling EDM, customized EDM & optional equipment (pallet changers & robots), CNC & power supply devices, precision EDM tooling, high speed precision milling center, nano-level precision machines, computer integrated mfg, high-precision injection molding machines, engineering ceramics, linear motors for machine tool & industrial production machines, electrochemical machines, EDM wires, precision tool and precise molding goods, electronic components, software, food machines, other.

           

Clients: [Mfrs, wholesalers] Yuasa Trading, Sodick Europe, Kanematsu KGK, Sodick Singapore, Sodick Inc, Yamazen Corp, other

 

No. of accounts: 1,000

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Sodick Thailand, Sodick Engineering, THK, Sodick EMG, Sodick FA, Yasukawa Mechatrec, other.

 

Payment record: Regular

 

Location: Business area in Yokohama.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

SMBC (Yokohama-Ekimae)

Mizuho Bank (Yokohama)

Relations: Satisfactory

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

36,761

54,533

 

  Cost of Sales

27,874

39,443

 

      GROSS PROFIT

8,887

15,090

 

  Selling & Adm Costs

11,575

17,602

 

      OPERATING PROFIT

-2,688

-2,512

 

  Non-Operating P/L

-385

-3,205

 

      RECURRING PROFIT

-3,073

-5,717

　

      NET PROFIT

-3,669

-8,527

BALANCE SHEET

 

 

 

 

  Cash

　

15,817

18,717

 

  Receivables

 

11,653

13,226

 

  Inventory

 

13,595

17,683

 

  Securities, Marketable

　

　

 

  Other Current Assets

1,091

1,671

 

      TOTAL CURRENT ASSETS

42,156

51,297

 

  Property & Equipment

23,786

25,649

 

  Intangibles

 

2,743

3,507

 

  Investments, Other Fixed Assets

4,082

3,898

 

      TOTAL ASSETS

72,767

84,351

 

  Payables

 

7,037

5,724

 

  Short-Term Bank Loans

21,687

28,113

 

　

 

　

　

 

  Other Current Liabs

8,057

8,972

 

      TOTAL CURRENT LIABS

36,781

42,809

 

  Debentures

 

792

1,226

 

  Long-Term Bank Loans

9,303

10,095

 

  Reserve for Retirement Allw

1,005

1,062

 

  Other Debts

　

1,038

1,758

 

      TOTAL LIABILITIES

48,919

56,950

 

      MINORITY INTERESTS

 

 

 

Common stock

20,775

20,775

 

Additional paid-in capital

6,949

6,949

 

Retained earnings

(1,990)

1,698

 

Evaluation p/l on investments/securities

33

(135)

 

Others

 

216

249

 

Treasury stock, at cost

(2,135)

(2,135)

 

      TOTAL S/HOLDERS` EQUITY

23,848

27,401

　

      TOTAL EQUITIES

72,767

84,351

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

7,256

1,935

 

Cash Flows from Investment Activities

-693

-7,088

 

Cash Flows from Financing Activities

-9,437

4,605

　

Cash, Bank Deposits at the Term End

　

15,804

18,693

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

23,848

27,401

 

 

Current Ratio (%)

114.61

119.83

 

 

Net Worth Ratio (%)

32.77

32.48

 

 

Recurring Profit Ratio (%)

-8.36

-10.48

 

 

Net Profit Ratio (%)

-9.98

-15.64

 

 

Return On Equity (%)

-15.38

-31.12

 

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.03

UK Pound

1

Rs.72.98

Euro

1

Rs.62.94

 

 

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.