MIRA
INFORM REPORT
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Report Date : |
05.01.2013 |
IDENTIFICATION DETAILS
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Name : |
UBE INDUSTRIES LTD |
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Registered Office : |
Seavans North Bldg, Shibaura Minatoku Tokyo 105-8449 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
March 1942 |
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Com. Reg. No.: |
(Yamaguchi-Ube) 002992 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of chemicals, construction materials, machinery & metal molding, energy |
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No. of Employees : |
11,248 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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 (31.03.2011) |
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.
Source
: CIA
Company name and address
UBE INDUSTRIES Ltd
REGD NAME: Ube
Kosan KK
MAIN OFFICE:
Seavans North Bldg, Shibaura Minatoku Tokyo 105-8449 JAPAN
Tel:
03-5419-6112 Fax: 03-5419-6237-
*.. Registered at:
1978-96 Kogushi Ube City Yamaguchi-Pref;
Phone:
0836-31-1111; Fax: 0836-21-2232
URL: http://www.ube-ind.co.jp
E-Mail address: (thru the URL)
ACTIVITIES
Mfg of chemicals,
construction materials, machinery & metal molding, energy
BRANCHES
Osaka, Nagoya,
Fukuoka
OVERSEAS
China (5), Hong
Kong, Singapore, Thailand (5), USA (2), Europe (4), Brazil
FACTORIES
Ube (2), Chiba,
Ise, Sakai
CHIEF EXEC
MICHIO TAKESHITA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 638,653 M
PAYMENTS REGULAR CAPITAL Yen 58,435 M
TREND SLOW WORTH Yen 224,407 M
STARTED 1954 EMPLOYES 11,248
COMMENT
MFR OF CHEMICALS & CEMENT AS MAINLINE
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2013 fiscal term.
HIGHLIGHTS
The subject
company was established originally as coal mining firm in 1987. Made new start in 1942 thru merger of 3 firms
in chemical, cement & machinery industries.
Now is a diversified mfr of chemicals & cement, as mainline. Third ranked mfr of nylon materials in the
world. Also has strength in electronic
materials. The firm will boost its
global production of caprolactam from current 390,000 tons to 418,000 tons per
year by early 2012. Silicon nitride for
solar cells is going into full-scale production soon. It will rush to start mass production of
highly scratch-resistant polymer materials.
FINANCIAL INFORMATION
The sales volume for
Mar/2012 fiscal term amounted to Yen 638,653 million, a 3.7% up from Yen
616,062 million in the previous term. By
Divisions, Chemicals & Resins up 13.0% to Yen 231,000 million; Functional
Materials & Fine Chemicals down 6.4% to Yen 64,300 million; Cement &
Construction Materials up 4.3% to Yen 209,100 million; Machinery & Metal
Molding down 13.0% to Yen 72,500 million; Energy & environment up 5.7% to
Yen 62,500 million. The recurring profit
was posted at Yen 40,808 million and the net profit at Yen 22,969 million,
respectively, compared with Yen 39,100 million recurring profit and Yen 17,267
million net profit, respectively, a year ago. .
(Apr/Sept/2012
results): Sales 310,775 million (down 0.3%), operating profit Yen 16,188
million (down 28.5%), recurring profit Yen 14,676 million (down 29.2%), net
profit Yen 8,461 million (down 30.5%). (% compared with the corresponding
period a year ago). Market of caprolactam was slow because of the economic
slowdown on the global scale. Shipment
of cement, ready-mixed concrete and building materials increased. Received orders for molding machines mainly
used in the automobile industries increased, especially in the emerging
countries and North America, thanks to continuous adaptation of new models in
the market.
For the current term
ending Mar 2013 the recurring profit is projected at Yen 30,000 million and the
net profit at Yen 16,000 million, on a 0.1% fall in turnover, to Yen 638,000
million. Power sale, machinery and
pharmaceutical businesses will be on the upswing. Sales of cement and resources recycling will
edge up, buoyed by post-disaster reconstruction demand. But the market price of nylon materials will
fall after surging in the preceding term, due to over-supply and reduced
demand.
The financial
situation is considered FAIR and good for ORDINARY business engagements.
REGISTRATION
Date
Registered: Mar 1942
Regd
No.: (Yamaguchi-Ube) 002992
Legal Status: Limited Company (Kabushiki Kaisha
Authorized:
3,300 million shares
Issued: 1,009,165,006 shares
Sum: Yen 58,435 million
Major
shareholders (%): Japan Trustee Services T (7.9, Master Trust Bank of Japan T (6.2),
State Street Bank & Trust (3.3), Zenkyoren (2.9), JP Morgan Chase Bank
(2.5), Sumitomo Life Ins (1.9), Japan Trustee Services T9 (1.8), Nomura Trust
Inv T (1.4); foreign owners (32.7)
No. of shareholders: 55,407
Listed on the S/Exchange (s) of: Tokyo, Fukuoka
Managements: Hiroaki Tamura,
ch; Michio Takeshita, pres; Akinori Furukawa, v pres; Yuzuru Yamamoto, s/mgn
dir; Hidseyuki Sugishita, s/mgn dir; Charunya Phichitkul/ mgn dir; Shinobu
Watanabe, mgn dir; Nobuyuki Taenaka, mgn dir; Takanobu Kubota, mgn dir; Tadashi
Matsunami, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Ube Materials, Ube Kosan Machinery, other.
OPERATION
Activities: Manufactures
chemicals & cement, as mainline:
(Sales
Breakdown by Divisions):
Chemicals
& Resins Division (34%): synthetic rubber, caprolactam chain (caprolactam,
polyamide resins, industrial chemicals);
Functional
Materials & Fine Chemicals Division (9%): specialty products (polyamide, battery
materials, high purity chemicals, separation membranes, ceramics,
telecommunication devices, aerospace materials), fine chemicals,
pharmaceuticals (active ingredients, intermediates);
Construction
Materials Division (32%): cement, resource recycling, building materials
(self-leveling materials, plastering materials & waterproofing materials),
limestone, ready-mixed concrete, calcia, magnesia, specialty inorganic
materials;
Machinery
& Metal Molding Division (15%): machinery (molding machines, die-casting
machines, injection molding machines, industrial machinery, bridges &
structures, steelmaking materials, aluminum wheels;
Energy
& Environment Division (9%): coal, power:
Others
(1%)
Overseas
Sales Ratio (31%)
Clients: [Mfrs,
wholesalers] Ube Mitsubishi Cement, Unitika Ltd, Toyota Tsusho Corp, Bridgestone
Corp, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sojitz Corp,
Mitsubishi Corporation, Ube Ammonia Ind,
Sumitomo Corp, Rio
Tinto Japan, Toho Tenax Co, other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Corporate
Bank (H/O)
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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638,653 |
616,062 |
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Cost of Sales |
512,447 |
494,046 |
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GROSS PROFIT |
126,206 |
122,016 |
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Selling & Adm Costs |
80,200 |
77,653 |
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OPERATING PROFIT |
46,006 |
44,363 |
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Non-Operating P/L |
-5,198 |
-5,263 |
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RECURRING PROFIT |
40,808 |
39,100 |
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NET PROFIT |
22,969 |
17,267 |
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BALANCE SHEET |
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Cash |
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33,267 |
49,711 |
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Receivables |
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150,108 |
134,914 |
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Inventory |
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81,266 |
73,247 |
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Securities, Marketable |
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Other Current Assets |
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TOTAL CURRENT ASSETS |
284,417 |
281,701 |
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Property & Equipment |
313,949 |
313,945 |
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Intangibles |
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4,941 |
4,988 |
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Investments, Other Fixed Assets |
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TOTAL ASSETS |
665,965 |
661,512 |
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Payables |
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88,811 |
89,135 |
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Short-Term Bank Loans |
97,073 |
96,859 |
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Other Current Liabs |
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TOTAL CURRENT LIABS |
267,391 |
249,701 |
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Debentures |
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15,100 |
15,100 |
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Long-Term Bank Loans |
122,151 |
144,082 |
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Reserve for Retirement Allw |
6,534 |
7,026 |
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Other Debts |
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TOTAL LIABILITIES |
440,558 |
450,063 |
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MINORITY INTERESTS |
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Common
stock |
58,435 |
58,435 |
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Additional
paid-in capital |
28,459 |
28,451 |
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Retained
earnings |
132,751 |
114,817 |
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Evaluation
p/l on investments/securities |
1,427 |
1,152 |
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Others |
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Treasury
stock, at cost |
(784) |
(783) |
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TOTAL S/HOLDERS` EQUITY |
224,407 |
211,449 |
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TOTAL EQUITIES |
664,965 |
661,512 |
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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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40,630 |
67,081 |
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Cash
Flows from Investment Activities |
-13,550 |
-28,685 |
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Cash
Flows from Financing Activities |
-12,695 |
-25,073 |
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Cash,
Bank Deposits at the Term End |
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33,107 |
49,522 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
224,407 |
211,449 |
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Current
Ratio (%) |
106.37 |
112.82 |
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Net
Worth Ratio (%) |
33.75 |
31.96 |
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Recurring
Profit Ratio (%) |
6.39 |
6.35 |
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Net
Profit Ratio (%) |
3.60 |
2.80 |
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Return
On Equity (%) |
10.24 |
8.17 |
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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.54.84 |
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|
1 |
Rs.88.16 |
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Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
|
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.