MIRA INFORM REPORT

 

 

Report Date :           

31.10.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

KOBE STEEL LTD

 

 

Registered Office :

2-10-26 Wakihamacho Chuoku Kobe 651-8585

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

June 1911

 

 

Com. Reg. No.:

(Kobe-Chuoku) 005714

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturer steel, aluminum & copper, machinery, construction materials

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

Yen 35,040.6 Million

 

 

Status :

Good

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

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

 

KOBE STEEL LTD

 

 

REGD NAME

 

KK Kobe Seikosho

 

 

MAIN OFFICE

 

2-10-26 Wakihamacho Chuoku Kobe 651-8585 JAPAN

Tel: 078-261-5111     Fax: 078-261-4123

 

* The given address is its Takasago Works

 

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

E-Mail address:                        admin@kobelco.co.jp

 

 

ACTIVITIES  

 

Mfg steel, aluminum & copper, machinery, construction materials, other

 

 

BRANCH(ES)

 

Tokyo, Osaka, Nagoya, Sapporo, Sendai, Niigata, Toyama, Takamatsu, Hiroshima, Fukuoka, Okinawa

 

 

OVERSEAS   

 

Kobe Steel USA Inc (New York & Detroit), Kobe Steel Asia Pte (Singapore),

Kobe Steel Asia Pte Ltd (Hong Kong), Shanghai, Beijing (--subsidiaries)

 

 

FACTORY(IES)   

 

Takasago, Kakogawa, Harima (--Hyogo), Kobe, Fujisawa, Hadano, Ibaraki, Mooka, Chofu, Inabe (Mie)

 

CHIEF EXEC 

 

HIROSHI SAITOH, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 1,858,574 M

PAYMENTS                  REGULAR         CAPITAL           Yen 233,313 M

TREND             SLOW              WORTH            Yen 597,367 M

STARTED                     1911                 EMPLOYES      34,772

 

 

COMMENT

 

ONE OF LEADING STEEL MAKERS IN JAPAN. 

 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 35,040.6 MILLION, 30 DAYS NORMAL TERMS.

 

 

                        Forecast (or estimated) figures for 31/03/2012 fiscal term

 

 

HIGHLIGHTS

 

This is one of the nation’s leading steel makers, with conglomerate operating materials divisions including: steel (4th ranked in blast furnace), aluminum & copper, and machinery.  Construction machinery business is undertaken in tie-up with Wisconsin-based CNH Global.  Strengthening wholesale power supply business.  Eager for diversification and globalization of businesses.  Construction machinery business undertaken in tie-up with Wisconsin-based CNH Global.  Also engaged in IPP business.  The company has acquired land next to the plant in Sichuan, China, in hope to expand production of cranes and shovels to cope with increasing demand.

 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2011 fiscal term amounted to Yen 1,858,574 million, an 11.2% up from Yen 1,671,021 million in the previous term.  Thanks to the rapid recovery of economies after the global economic downturn.  Growth of emerging economies including China was noteworthy.  The sales of the Group’s steel, aluminum and copper rolled products surpassed those of the previous fiscal year, buoyed by firm demand from mfg industries in and outside Japan.  Unit sales of hydraulic excavators greatly exceeded those of fiscal 2009 primarily behind growing demand in China.  By Divisions, Steel up 13.2% to Yen 840,300 million;  Welding up 2.1% to Yen 77,700 million; Aluminum & Copper up 16.1% to Yen 304,000 million, thanks to the price hike of materials; Machinery down 11.1% to Yen 154,500 million.  The recurring profit was posted at Yen 89,082 million and the net profit at Yen 52,939 million, respectively, compared with Yen 10,258 million recurring profit and Yen 6,304 million net profit, respectively, a year ago.

 

(Apr/June/2011 results): Sales Yen 471,410 million (up 3.1%), operating profit Yen 29,034 million (down 37.6%), recurring profit Yen 23,967 million (down 37.0%), net profit Yen 9,837 million (down 50.9%).  (% compared with the corresponding period a year ago.)

 

For the current term ending Mar 2012 the recurring profit is projected at Yen 50,000 million and the net profit at Yen 20,000 million, respectively, on a 7.1% rise in turnover, to Yen 1,990,000 million.  Sales of shovels continue solid growth.  The welding business is increasing briskly.  But profit margin on industrial machinery is shrinking, badly affected by Yen’s appreciation.  Sales of steel & aluminum products for automobile slumped in the first half.

 

The financial situation is considered FAIR and good for ORDINARY business          engagements.    Max credit limit is estimated at Yen 35,040.6 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered: Jun 1911

Regd No.:        (Kobe-Chuoku) 005714

Legal Status:   Limited Company (Kabushiki Kaisha)

Authorized:       6,000 million shares

Issued:             3,115,061,100 shares

Sum:                 Yen 233,313 million

 

Major shareholders (%): Japan Trustee Services T (4.0), Nippon Life Ins (3.8), Company’s Treasury Stock (3.5), Nippon Steel (3.4), Sumitomo Metal Ind (3.4), Master Trust Bank of Japan T (3.2), Mizuho Corporate Bank (2.0), Mitsubishi UFJ Trust (1.6), SSBT OD05 Omnibus Acct Treaty (1.6), MUFG (1.5); foreign owners (17.1).

           

No. of shareholders: 162,223

 

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

 

Managements: Hiroshi Satoh, pres; Tomoyuki Kaya, v pres; Takashi Matsutani, v pres; Kazuo Shigekawa, v pres Ikuhiro Yamaguchi, v pres; Hiroaki Fujiwara, v pres; Tetsu Takahashi, s/mgn dir; Tsuyoshi Katsuya,/ s/mgn dir; Yuichi Seki, s/mgn dir

           

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

 

Related companies: Nippon Koshuh Steel, Kobelco Construction Machinery, Shinko Pantec, Kobelco Eco-Solutions, other            

 

 

OPERATION

           

Activities: Manufactures steel, aluminum & copper, machinery, construction machinery,     electronics materials,

wholesales power supply, others:

 

(Sales Breakdown by Divisions):

 

Iron & Steel Div (44%): wire rods & bars, steel sheets, castings & forging, titanium  products, steel powder & powder products, welding electrodes, welding wires, welding robots, others;

 

Wholesale Power Supply Div (3%): Shinko Kobe Power Station has electricity generation capacity of 1.4 million kilowatts;

 

Aluminum & Copper Div (16%): rolled aluminum products, aluminum alloy &magnesium alloy casting, aluminum processed products, rolled copper products;

 

Machinery Div (8%): screw compressors, centrifugal compressors, reciprocating compressors, refrigeration compressors, uninterruptible power sources, hot isostatic presses, cold isostatic presses, surface modification systems, inspection & analysis             systems, crushers, plastic processing machinery, tire & rubber machinery, high pressure anneal equipment, supercritical CO2 equipment;

 

Construction Machinery Div (16%): hydraulic excavators, mini excavators, wheel loaders, crawler cranes, rough terrain cranes, work vessels, electric mining shovels;

 

Electronics & Information Div (5%): electronics equipment, communication systems, superconductive products, specialty alloy & other new materials, semiconductor-related equipment, information services;

 

Real Estate Div, others (8%): community & urban development, real property services, building management, others.

 

Clients: [Mfrs, wholesalers] Shinsho Corp, Toyota Tsusho Corp, Mitsui & Co, Sumitomo     Corp, Metal One, Daiwa Can Co, other.

 

No. of accounts: 2,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Shinsho Corp, Sojitz Corp, Mitsubishi Corp, Kansai Coke & Chemicals, Shinko Engineering & Maintenance, other.

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate (H/O)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCIALS

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2011

31/03/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

1,858,574

1,671,021

 

  Cost of Sales

1,570,779

1,475,461

 

      GROSS PROFIT

287,795

195,560

 

  Selling & Adm Costs

163,244

149,545

 

      OPERATING PROFIT

124,550

46,015

 

  Non-Operating P/L

-35,460

-35,756

 

      RECURRING PROFIT

89,082

10,259

　

      NET PROFIT

52,939

6,304

BALANCE SHEET

 

 

 

 

  Cash

　

245,875

131,939

 

  Receivables

 

302,846

283,619

 

  Inventory

 

381,344

367,060

 

  Securities, Marketable

　

　

 

  Other Current Assets

66,692

189,993

 

      TOTAL CURRENT ASSETS

996,757

972,611

 

  Property & Equipment

933,339

968,070

 

  Intangibles

 

22,231

21,385

 

  Investments, Other Fixed Assets

279,205

287,279

 

      TOTAL ASSETS

2,231,532

2,249,345

 

  Payables

 

478,675

434,819

 

  Short-Term Bank Loans

170,657

167,876

 

　

 

　

　

 

  Other Current Liabs

239,047

205,478

 

      TOTAL CURRENT LIABS

888,379

808,173

 

  Debentures

 

177,349

213,186

 

  Long-Term Bank Loans

441,099

525,170

 

  Reserve for Retirement Allw

29,345

33,247

 

  Other Debts

　

97,993

112,567

 

      TOTAL LIABILITIES

1,634,165

1,692,343

 

      MINORITY INTERESTS

 

 

 

Common stock

233,313

233,313

 

Additional paid-in capital

83,125

83,125

 

Retained earnings

302,376

258,858

 

Evaluation p/l on investments/securities

19,742

22,529

 

Others

 

10,438

10,555

 

Treasury stock, at cost

(51,627)

(51,378)

 

      TOTAL S/HOLDERS` EQUITY

597,367

557,002

　

      TOTAL EQUITIES

2,231,532

2,249,345

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2011

31/03/2010

 

Cash Flows from Operating Activities

　

177,795

172,893

 

Cash Flows from Investment Activities

-96,686

-120,324

 

Cash Flows from Financing Activities

-98,196

-29,641

　

Cash, Bank Deposits at the Term End

　

189,707

211,699

ANALYTICAL RATIOS            Terms ending:

31/03/2011

31/03/2010

 

 

Net Worth (S/Holders' Equity)

597,367

557,002

 

 

Current Ratio (%)

112.20

120.35

 

 

Net Worth Ratio (%)

26.77

24.76

 

 

Recurring Profit Ratio (%)

4.79

0.61

 

 

Net Profit Ratio (%)

2.85

0.38

 

 

Return On Equity (%)

8.86

1.13


FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.82

UK Pound

1

Rs.78.57

Euro

1

Rs.69.29

 

 

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

----

NB

New Business

----

 

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.