MIRA
INFORM REPORT
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Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
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Name : |
NSK LTD |
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Registered Office : |
Nissei Bldg, 1-6-3 Ohsaki Shinagawaku
Tokyo 141-8560 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
November 1916 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of industrial
machinery (bearings), automotive products |
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No. of Employees : |
28404 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Yen 17,252.6 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
japan ECONOMIC OVERVIEW
In the years following World War
II, government-industry cooperation, a strong work ethic, mastery of high
technology, and a comparatively small defense allocation (1% of GDP) helped
Japan develop a technologically advanced economy. Two notable characteristics
of the post-war economy were the close interlocking structures of
manufacturers, suppliers, and distributors, known as keiretsu, and the
guarantee of lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A small agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. While self-sufficient in rice production, Japan imports about 60%
of its food on a caloric basis. For three decades, overall real economic growth
had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s,
and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging
just 1.7%, largely because of the after effects of inefficient investment and
an asset price bubble in the late 1980s that required a protracted period of
time for firms to reduce excess debt, capital, and labor. Modest economic
growth continued after 2000, but the economy has fallen into recession three
times since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan into recession. Government stimulus
spending helped the economy recover in late 2009 and 2010, but the economy
contracted again in 2011 as the massive 9.0 magnitude earthquake and the
ensuing tsunami in March disrupted manufacturing. The economy has largely
recovered in the two years since the disaster, but reconstruction in the Tohoku
region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared
the economy his government's top priority; he has pledged to reconsider his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus and regulatory reform and has
said he will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 stood as the fourth-largest economy in the world after second-place
China, which surpassed Japan in 2001, and third-place India, which edged out
Japan in 2012. The new government will continue a longstanding debate on restructuring
the economy and reining in Japan's huge government debt, which exceeds 200% of
GDP. Persistent deflation, reliance on exports to drive growth, and an aging
and shrinking population are other major long-term challenges for the economy.
|
Source : CIA |
Company name
NSK LTD
REGD NAME
Nippon Seiko KK
MAIN OFFICE
Nissei Bldg, 1-6-3
Ohsaki Shinagawaku Tokyo 141-8560 JAPAN
Tel:
03-3779-7111 -
URL: http://www.jp.nsk.com
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of
industrial machinery (bearings), automotive products
BRANCHES
Fujisawa, Ohtsu, Hanyu, Konan, Higashi-Shirakawa
OVERSEAS
UK (4), Poland (4), USA (7), Thailand (2), Indonesia (3), Malaysia (2), China (11), Korea (2), Germany (--plants & subsidiaries)
FACTORIES
Fujisawa,
Ishibe, Fukushima; Soja, Akagi (--subsidiaries)
CHIEF EXEC
NORIO
OHTSUKA, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 733,192 M
PAYMENTS REGULAR CAPITAL Yen
67,176 M
TREND UP WORTH Yen 299,066 M
STARTED 1916 EMPLOYES 28,404
COMMENT
MFR OF BEARINGS
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 17,252.6 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2013
fiscal term.
HIGHLIGHTS
This is the largest mfr of bearings and one of the largest ball screws for machine tools. Aggressively involved in overseas operations. Branding into machinery parts by utilizing precision processing technology. Expanding nonbearing sectors thru diversifying into electronic-applied products including precision positioning tables. The company acquired 25% stake in a private bearing maker in China MOS to make a full-scale entry into the high-volume market in China, where it has 4 factories. It established a new automobile bearing plant in Mexico at a cost of six billion yen, with the startup slated for spring 2014.
FINANCIAL INFORMATION
The sales volume for Mar/2012 fiscal term amounted to Yen 733,192 million, a 3.2% up from Yen 710,431 million in the previous term. Economic growth appeared to steady for the first half of the year, supported by recovery from the impact of the Great East Japan Earthquake and continued economic expansion in emerging countries, particularly China and the ASEAN region. However, in the second half of the year, economic growth showed a downturn due to the effect of flooding in Thailand and financial uncertainty in several European countries. By Divisions: Industrial Machinery Segment down 1.3% to Yen 255,835 million, reflecting the impact of segment transfer of systemized products; Automotive Segment up 4.8% to Yen 444,535 million, as demand expanded mainly for EPS systems. The recurring profit was posted at Yen 42,004 million and the net profit at Yen 28,514 million, respectively, compared with Yen 38,572 million recurring profit and Yen 28,110 million net profit, respectively, a year ago.
(Apr/Dec/2012 results): Sales Yen 539,434 million (up 0.5%), operating profit Yen 22,496 million (down 32.2%), recurring profit Yen 21,862 million (down 29.8%), net profit Yen 13,503 million (down 33.0%). (% compared with the corresponding period a year ago).
For the term that ended Mar 2013 the recurring profit was projected at Yen 23,000 million and the net profit at Yen 15,000 million, on a 2.5% fall in turnover, to Yen 715,000 million. Sales of automobile-use products were holding steady, but those of main profit-earner industrial machinery-use for construction machinery and machine tools slowed down.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 17,252.6 million, on 30 days normal terms.
REGISTRATION
Date Registered: Nov 1916
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 1,700 million shares
Issued:
551,288,104 shares
Sum: Yen 67,176
million
Major shareholders (%): Master Trust Bank of Japan T (8.0), Fukoku Life Ins (5.5), Nippon Life Ins (5.5), Meiji Yasuda Life Ins (4.8), Japan Trustee Services T (4.1), Mizuho Corporate Bank (3.4), Zenkoren (2.4), Company’s Treasury Stock (1.9), JTSB (Toyota Motor) (1.9), Toyota Motor (1.8); foreign owners (21.0)
No. of shareholders: 20,432
Listed on the S/Exchange (s) of: Tokyo, Osaka
Managements: Norio Otsuka, pres, Ryoichi Saito, v pres, Tsutomu Komori, v pres, Toshihide Shimbo, v pres; Norbert Schneider, v pres; Hideyuki Shibamoto, v pres, Naoki Mitsue, v pres; Kazuo Nagatake, s/mgn dir; Masakazu Aijima, s/mgn dir; Toshihiro Uchiyama, s/mgn dir; Masahide Matsubara, s/mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: NSK Steering Systems, NSK Kyushu Co, other.
OPERATION
Activities: Manufactures bearings: for industrial machinery (35%), for automobiles (61%), others (4%)
Overseas Sales Ratio
(59%)
(Mfg Items): ball bearings, roller bearings, bearing units, super precision bearings (bearings for steel industry), bearings for mining & construction, bearings for paper making machines, bearings for pumps & compressors, bearings for special environments, automotive products (chassis, power train, drive train), precision machine components, other
Clients: [Mfrs, wholesalers] Aisin AW, Toyota Motor, NSK Europe, Nissan Motor, NSK Corporation, other
No. of accounts: 800
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] NSK Needle Bearing, NSK Precision, NSK Bearing Systems, Mitsui & Co, other,
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned and maintained satisfactorily.
Bank References:
Mizuho Corporate Bank (Ohtemachi)
MUFG (Marunouchi)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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733,192 |
710,431 |
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Cost of Sales |
585,008 |
562,952 |
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GROSS PROFIT |
148,184 |
147,478 |
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Selling & Adm Costs |
103,767 |
103,954 |
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OPERATING PROFIT |
44,417 |
43,524 |
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Non-Operating P/L |
-2,413 |
-4,952 |
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RECURRING PROFIT |
42,004 |
38,572 |
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NET PROFIT |
28,514 |
26,110 |
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BALANCE SHEET |
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Cash |
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72,720 |
71,047 |
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Receivables |
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155,234 |
136,016 |
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Inventory |
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115,416 |
111,648 |
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Securities, Marketable |
66,067 |
51,387 |
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Other Current Assets |
45,194 |
48,486 |
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TOTAL CURRENT ASSETS |
454,631 |
418,584 |
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Property & Equipment |
251,644 |
235,906 |
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Intangibles |
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12,526 |
10,509 |
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Investments, Other Fixed Assets |
126,272 |
123,627 |
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TOTAL ASSETS |
845,073 |
788,626 |
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Payables |
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137,607 |
124,103 |
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Short-Term Bank Loans |
70,569 |
65,298 |
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Other Current Liabs |
100,325 |
104,480 |
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TOTAL CURRENT LIABS |
308,501 |
293,881 |
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Debentures |
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35,000 |
65,000 |
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Long-Term Bank Loans |
147,346 |
97,842 |
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Reserve for Retirement Allw |
20,990 |
21,142 |
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Other Debts |
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34,170 |
35,492 |
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TOTAL LIABILITIES |
546,007 |
513,357 |
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MINORITY INTERESTS |
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Common
stock |
67,176 |
67,176 |
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Additional
paid-in capital |
78,340 |
78,334 |
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Retained
earnings |
178,186 |
155,062 |
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Evaluation
p/l on investments/securities |
14,766 |
12,213 |
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Others |
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(35,214) |
(33,336) |
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Treasury
stock, at cost |
(4,188) |
(4,180) |
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TOTAL S/HOLDERS` EQUITY |
299,066 |
275,269 |
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TOTAL EQUITIES |
845,073 |
788,626 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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57,158 |
64,973 |
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Cash Flows
from Investment Activities |
-56,090 |
-33,348 |
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Cash
Flows from Financing Activities |
14,637 |
-32,966 |
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Cash,
Bank Deposits at the Term End |
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135,307 |
120,333 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
299,066 |
275,269 |
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Current
Ratio (%) |
147.37 |
142.43 |
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Net
Worth Ratio (%) |
35.39 |
34.90 |
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Recurring
Profit Ratio (%) |
5.73 |
5.43 |
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Net Profit
Ratio (%) |
3.89 |
3.68 |
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Return
On Equity (%) |
9.53 |
9.49 |
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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.54.17 |
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UK Pound |
1 |
Rs.82.45 |
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Euro |
1 |
Rs.70.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.