MIRA INFORM REPORT
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Report Date : |
02.02.2013 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO RUBBER INDUSTRIES LTD |
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Registered Office : |
3-6-9 Wakinohamacho Chuoku Kobe 651-0072 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
March, 1917 |
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Com. Reg. No.: |
1400-01-008691 |
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Legal Form : |
Limited Company |
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Line of Business : |
Mfg of automobile tires, golf balls |
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No. of Employees : |
23,142 |
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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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 tiny agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. Usually self-sufficient in rice, Japan imports about 60% of its food on a caloric basis. Japan maintains one of the world's largest fishing fleets and accounts for nearly 15% of the global catch. 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. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2011 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 2011. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan further 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 in March disrupted manufacturing. Electricity supplies remain tight because Japan has temporarily shut down almost all of its nuclear power plants after the Fukushima Daiichi nuclear reactors were crippled by the earthquake and resulting tsunami. Estimates of the direct costs of the damage - rebuilding homes, factories, and infrastructure - range from $235 billion to $310 billion, and GDP declined almost 0.5% in 2011. Prime Minister Yoshihiko NODA has proposed opening the agricultural and services sectors to greater foreign competition and boosting exports through membership in the US-led Trans-Pacific Partnership trade talks and by pursuing free-trade agreements with the EU and others, but debate continues 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.
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Source : CIA |
Company name
SUMITOMO RUBBER INDUSTRIES LTD
REGD NAME
Sumitomo Gomu
Kogyo KK
MAIN OFFICE
3-6-9
Wakinohamacho Chuoku Kobe 651-0072 JAPAN
Tel:
078-265-3000 Fax: 078-265-3113
*.. The is its
Tokyo Office
URL: http://www.srigroup.co.jp/
E-Mail address: Not specified (thru the URL)
ACTIVITIES
Mfg of automobile
tires, golf balls
BRANCHES
Tokyo, Sapporo, Nagoya,
Toyoda, Hiroshima, Fukuoka, other (Tot 9)
OVERSEAS
USA (3), Canada,
Belgium, Germany, Australia, UAE, Saudi Arabia, Singapore, China (2)
FACTORIES
Toyoda, Shirakawa,
Izumi-Ohtsu, Kakogawa
OVERSEAS
China (3), Indonesia,
Malaysia, Vietnam, Thailand
CHIEF EXEC
IKUJI IKEDA, PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 676,903 M
PAYMENTS REGULAR CAPITAL Yen 42,658 M
TREND STEADY WORTH Yen 222,174 M
STARTED 1917 EMPLOYES 23,142
COMMENT
MFR OF TIRES AND SPORTING GOODS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Notes: Unit: In
million Yen
Forecast (or
estimated) figures for 31/12/2012 fiscal term
HIGHLIGHTS
The subject company was established originally in 1913 as a maker of
tires & tubes for bicycles licensed from Dunlop, UK (the first maker in
Japan). Incorporated in 1917 and started
producing golf balls and tennis balls.
This is the second largest automobile tire maker in Japan, after
Bridgestone Corp. Highly competitive in
sporting goods, particularly gold balls and tennis balls. In 1960 joined Sumitomo group and renamed as
captioned in 1963. In mid-1980’, placed
Dunlop in UK, Germany, France and US under aegis. In 1999 signed global alliance with Goodyear,
USA. In 2002 founded tire factory in
China. In 2003 absorbed Ohtsu Tire &
Rubber Co and Dunlop Japan Ltd. In 2004
increased capital to Yen 42,658 million.
The company will expand into Turkey, aiming to supply to UK and
Russia. It plans to start operation of a
new plant in 2015 and achieve daily production of 30,000 tires in 2019,
investing a total of Yen 40 billion. It
will also establish six new footholds additionally by Dec 2020 term, mainly in
emerging countries. Clients are tire
dealers mainly.
FINANCIAL INFORMATION
The sales volume for Dec/2011 fiscal term amounted to Yen 676,903
million, a 12.0% up from Yen 604,548 million in the previous term. Demand for tires was brisk mainly in
Asia. Price hike of the products in the
preceding term was penetrated. Drop in
natural rubber prices also made a contribution.
The sporting goods business was bolstered by the new product
introduction. By divisions, tire div was
up 15.0% to Yen 591,045 million; Sporting Goods down 7.7% to Yen 58,365
million. The recurring profit was posted
at Yen 49,927 million and the net profit at Yen 28,386 million, respectively,
compared with Yen 42,478 million recurring profit and Yen 21,427 million net
profit, respectively, a year ago.
(Jan/Sept/2012 results): Sales Yen 499,961 million (up 6.9%), operating
profit Yen 43,714 million (up 48.8%), recurring profit Yen 41,818 million (up
58.0%), net profit Yen 23,020 million (up 67.9%). (% compared with the corresponding period a
year ago.).
For the term that ended Dec 2012 the recurring profit was projected at
Yen 81,000 million and the net profit at Yen 32,000 million, respectively, on a
4.2% rise in turnover, to Yen 705,000 million.
Tire sales units were increased by 6%.
Sales in Europe were weak, but brisk in Japan and Asia. Sales in North America also improved. Price hike in the preceding term penetrated
and raw material natural rubber prices also stabilized. The golf business was shored up by launching
new products. Final results are yet to
be released.
The financial situation is considered FAIR
and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Mar 1917
Regd No.:
1400-01-008691
(Kobe-Chuoku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 800
million shares
Issued:
363,043,057 shares
Sum: Yen 42,658 million
Major
shareholders (%): Sumitomo Electric Ind*(26.7), Master Trust Bank of Japan T (7.1),
Japan Trustee Services T (4.1), Sumitomo Corp (3.6), Zenkyoren (2.9), Japan
Trustee Services T9 (2.1), SMBC (1.9), SSBT OD05 Omnibus Acct Treaty Cl. (1.4),
Goodyear Tire & Rubber (1.3), Mellon Bank Mellon Omnibus US P (1.0);
foreign owners (26.1).
No. of shareholders: 14,885
Listed on the S/Exchange (s) of: Tokyo
Managements: Tetsuji Mino, ch;
Ikuji Ikeda, pres; Takaki Nakano, s/mgn dir; Hiroaki Tanaka, s/mgn dir; Kenji
Onga, mgn dir; Minoru Nishi, mgn dir;Yasutaka Ii, mgn dir; Hiroki Ishida, mgn
dir; Yutaka Kuroda, mgn dir;
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: SRI Sports, SRI Hybrid, Dunlop Tires, Falken Tires, Goodyear Japan,
Dunlop Goodyear Tires, PT Sumi Rubber Indonesia, other
OPERATION
Activities: Manufactures
tires (87%): under Dunlop, Falken, Goodyear brands; sporting goods (9%): golf
balls & goods under Dunlop brand in Japan, Taiwan & Korea, additionally
golf goods under SRIXON brand (managed by group firm, SRI Sports Ltd);
industrial products: marine fenders, blankets for offset printing presses, artificial
turf & LCD backlights, natural rubber gloves (Malaysia), OA equipment
(China), bed-related products (France & Germany), others (--4%).
Overseas
trading ratio (50%)
(Sports
Goods): Golf goods (clubs, balls, bags, gloves, shoes, other; Tennis goods
(balls, rackets, bags, shoes, others;
Industrial
& other products: artificial turf, offset printing blanket,
precision rubber parts for IT equipment, dock fenders, high damping rubber,
flooring materials, flexible rubber joints, marine-pollution screens, rubber hoses,
rubber gloves and medical rubber stoppers, other
Clients: [Tire dealers,
sporting goods dealers] Dunlop Goodyear Tire, Dunlop Tire, Kubota Corp, other.
No. of accounts: 2,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs,
wholesalers] Sumitomo Electric Ind, Sumitomo Corp, Itochu Corp, Sumitomo
Chemical, PT Sumi Rubber Indonesia, Goodyear Orient Co, Nakatani Sangyo, other.
Payment record: Regular
Location: Business area in
Kobe. Office premises at the caption address
are owned and maintained satisfactorily.
Bank References:
SMBC (Kobe)
Sumitomo Trust
Bank (Kobe)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2011 |
31/12/2010 |
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INCOME STATEMENT |
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Annual Sales |
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676,903 |
604,548 |
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Cost of Sales |
445,426 |
387,678 |
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GROSS PROFIT |
231,477 |
216,870 |
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Selling & Adm Costs |
177,553 |
169,299 |
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OPERATING PROFIT |
53,924 |
47,571 |
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Non-Operating P/L |
-3,997 |
-5,093 |
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RECURRING PROFIT |
49,927 |
42,478 |
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NET PROFIT |
28,386 |
21,427 |
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BALANCE SHEET |
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Cash |
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29,191 |
35,391 |
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Receivables |
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150,224 |
130,398 |
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Inventory |
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115,522 |
85,569 |
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Securities, Marketable |
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Other Current Assets |
30,491 |
30,127 |
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TOTAL CURRENT ASSETS |
325,428 |
281,485 |
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Property & Equipment |
232,974 |
225,530 |
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Intangibles |
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18,215 |
16,278 |
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Investments, Other Fixed Assets |
94,993 |
98,950 |
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TOTAL ASSETS |
671,610 |
622,243 |
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Payables |
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77,422 |
72,813 |
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Short-Term Bank Loans |
77,614 |
52,270 |
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Other Current Liabs |
87,099 |
101,091 |
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TOTAL CURRENT LIABS |
242,135 |
226,174 |
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Debentures |
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75,000 |
55,000 |
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Long-Term Bank Loans |
97,504 |
94,137 |
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Reserve for Retirement Allw |
12,148 |
11,955 |
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Other Debts |
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22,648 |
22,008 |
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TOTAL LIABILITIES |
449,435 |
409,274 |
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MINORITY INTERESTS |
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Common
stock |
42,658 |
42,658 |
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Additional
paid-in capital |
38,661 |
38,661 |
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Retained
earnings |
159,826 |
127,595 |
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Evaluation
p/l on investments/securities |
2,815 |
3,420 |
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Others |
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(21,247) |
1,166 |
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Treasury
stock, at cost |
(539) |
(537) |
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TOTAL S/HOLDERS` EQUITY |
222,174 |
212,963 |
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TOTAL EQUITIES |
671,610 |
622,243 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2011 |
31/12/2010 |
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Cash
Flows from Operating Activities |
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18,945 |
69,724 |
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Cash
Flows from Investment Activities |
-51,570 |
-35,400 |
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Cash
Flows from Financing Activities |
28,009 |
-25,633 |
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Cash,
Bank Deposits at the Term End |
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28,511 |
38,157 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2011 |
31/12/2010 |
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Net
Worth (S/Holders' Equity) |
222,174 |
212,963 |
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Current
Ratio (%) |
134.40 |
124.46 |
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Net
Worth Ratio (%) |
33.08 |
34.23 |
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Recurring
Profit Ratio (%) |
7.38 |
7.03 |
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Net
Profit Ratio (%) |
4.19 |
3.54 |
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Return
On Equity (%) |
12.78 |
10.06 |
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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.53.32 |
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1 |
Rs.84.60 |
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Euro |
1 |
Rs.72.63 |
INFORMATION DETAILS
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Report Prepared
by : |
SDA |
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 |
---- |
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.