MIRA INFORM REPORT

 

 

Report Date :

28.06.2013

 

IDENTIFICATION DETAILS

 

Name :

FERRO CORPORATION (AUST.) PTY LTD

 

 

Registered Office :

105-115 Cochranes Road Moorabbin Victoria 3189

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2011 (Group Consolidated)

 

 

Date of Incorporation :

17.08.1936

 

 

Com. Reg. No.:

000033189

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturing and sales of specialty materials and chemicals.

 

 

No. of Employees :

5,120 employees (Ferro Group)

 

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

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

AUSTRALIA - ECONOMIC OVERVIEW

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam

Source : CIA


 

IDENTIFICATION DETAILS

 

Verified Address

Subject name :              FERRO CORPORATION (AUST.) PTY LTD

Business address :        105-115 Cochranes Road

Town :                          Moorabbin

Province :                     Victoria

Zip/postal code :           3189

Country :                       Australia

Tel :                              +61 3 95559466

Fax :                             +61 3 95557812

Website :                      www.ferro.com

 

Registered address :     105-115 Cochranes Road

Town :                          Moorabbin

Province :                     Victoria

Zip/postal code :           3189

Country :                       Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      17/08/1936

Legal form :                              Australian Proprietary Company

Chief executive :                       Geoffrey John Dowdell

Issued & paid up capital :          AUD 200,000

Sales turnover :                         USD 2,155,792,000 (Group-consolidated 12 months, 31/12/2011)

Net income :                             USD 32,367,000 (Group-consolidated 12 months, 31/12/2011)

Total fixed assets :                    USD 1,440,651,000 (Group-consolidated 12 months, 31/12/2011)

Line of business :                      Manufacturing and sales of specialty materials and chemicals.

Staff employed :                       5,120 employees (Ferro Group)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                       Operational trend is steady

Management experience :          Management is reasonably experienced

Financial performance :             Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                             No detrimental found

Payment history :                      No payment delays noted

Comments :                              Larger credit can still be considered if guaranteed by Parent Company.

STATUTORY DETAILS

 

Registry Data

Registration date :                     17/08/1936

Legal form :                              Australian Proprietary Company

Registration no                          Australian Company Number: 000033189

Registered authority :                Australian Securities and Investments Commission

Fiscal/ Tax no :                         Australian Business Number: 61000033189

Registry status :                        Live/Active

Previous name :                        None reported.

Change of legal form :               None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Geoffrey John Dowdell

Designation :                Managing Director

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Michael James Murry

Designation :                Director

Appointment date :        19/08/05

Address :                      10939 E Acoma Drive

Scottsdale, AZ 85255

United States

Biography :                   Born on 21/03/1951 in Michigan, United States.

Michael J. Murry is Operating Vice President of Ferro's Electronic,

Color and Glass Materials Group, which includes its Electronic

Materials, Glass Systems and Performance Pigments and Colors

businesses. Prior to joining Ferro in 2005, Mr. Murry was president,

CEO and a director for Catalytica Energy Systems, a

development-stage clean energy company. He was vice president

and general manager for the portable and stationary power

businesses at Ballard Power Systems and prior to that was vice

president of marketing at American Natural Soda Ash.

Mr. Murry began his career at the Upjohn Company (now Pfizer) as a

chemical engineer. After earning a master's degree in business

administration, he continued his career with The Dow Chemical

Company, where he spent 15 years in a variety of marketing and

business operations management roles, including market manager

for the specialty epoxy and vinyl ester resin business, global business

operations manager for epoxy resins, and business operations

manager for the polycarbonate and thermoplastic polyurethanes

businesses.

Mr. Murry earned his master of business administration degree from

Wharton Business School at the University of Pennsylvania and his

bachelor and master of science degrees in chemical engineering from

Michigan State University.

 

Name :                          Geoffrey John Dowdell

Designation :                Director

Appointment date :        01/01/07

Address :                      228 Moray Street

South Melbourne, VIC 3205

Australia

Biography :                   Born on 21/10/1957 in Sydney, New South Wales, Australia.

 

Name :                          Matthias Peter Bell

Designation :                Director

Appointment date :        29/03/08

Address :                      319 Chamchuri Square, 16th Floor

Phayathai Road, Pathumwan

Bangkok 10330

Thailand

Biography :                   Born on 19/07/1967 in Germany.

 

Name :                          Duesenberg Mark Hugo

Designation :                Director

Appointment date :        15/09/09

Address :                      19856 Roslyn Drive

Rocky River, OH 44116

United States

Biography :                   Born on 17/01/1962 in New York, United States.

Mr. Mark Hugo Duesenberg is Vice President, General Counsel,

Secretary of Ferro Corp. He serves as the Executive Director, Legal

and Government Affairs, Lenovo Group Ltd., a global manufacturer of

personal computers and electronic devices, 2008 Legal Director —

Europe, Middle East and Africa, Lenovo Group Ltd., 2005.

 

Name :                          Peter Botica

Designation :                Company Secretary

Appointment date :        06/12/05

Address :                      Unit 2, 136 Queen Street

Altona, VIC 3018

Australia

Biography :                   Born on 05/02/1953 in Melbourne, Victoria, Australia.

Staff employed :           5,120 employees (Ferro Group)

 

Key Advisors

Auditors :                      KPMG

Level 4 KPMG House

161 Collins Street

Melbourne, VIC 3000

Australia

SHARE CAPITAL

 

Composition

Authorized Capital :       AUD 200,000

No of shares :               100,000 Ordinary Shares

Share par value :           AUD 2

Issued capital :              AUD 200,000

Paid up capital :            AUD 200,000

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

Shareholder name :       FERRO CORPORATION

Address :                      6060 Parkland Boulevard

Mayfield Heights, OH 44124

United States

No. of shares :              100,000 Ordinary Shares

% of shares :                100%

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          FERRO CORPORATION

Affiliation type :                        Parent Company

Address :                      6060 Parkland Boulevard

Mayfield Heights, OH 44124

United States

Comments :                  Ferro Corporation, together with its subsidiaries, engages in the production and

sale of specialty materials and chemicals in the Untied States and internationally.

The company provides electronics, color, and glass materials, including

conductive metal pastes and powders, polishing materials, glazes, enamels,

pigments, decoration colors, and other performance materials. It also offers

polymer and ceramic engineered materials comprising polymer additives,

engineered plastic compounds, pigment dispersions, glazes, frits, porcelain

enamel, pigments, and pharmaceutical active ingredients. The company provides

its products for a range of applications in various markets, such as appliances,

automobiles, building and renovation, electronics, industrial products, packaging,

pharmaceuticals, and photovoltaic products. The company sells its products to

manufacturers of ceramic tile, major appliances, construction materials,

automobile parts, glass, bottles, vinyl flooring and wall coverings, solar cells, and

pharmaceuticals directly, as well as through agents and distributors. Ferro

Corporation was founded in 1919 and is headquartered in Mayfield Heights, Ohio.

 

Name :                          FERRO FAR EAST COMPANY SDN. BHD.

Affiliation type :                        Sister Company

Address :                      D-5-13 Southgate Commercial Centre

No. 2 Jalan Dua

Off Jalan Chan Sow Lin

55200 Kuala Lumpur

Wilayah Persekutuan

Malaysia

 

Name :                          FERRO (SUZHOU) PERFORMANCE MATERIALS CO., LTD.

Affiliation type :                        Sister Company

Address :                      No. 178 Suhong West Road

Suzhou Industrial Park

Suzhou Jiangsu Province 215021

China

 

Name :                          FERRO MEXICANA S.A. DE C.V.

Affiliation type :                        Sister Company

Address :                      Oriente 171 Num. 450

Col. Prol. Aragon-Inguaran

Del. Gustavo A. Madero

C.P. 07490, Mexico, D.F.

 

Name :                          FERRO (BELGIUM) S.P.R.L.

Affiliation type :                        Sister Company

Address :                      Rue Granbonpré, 11

B-1435 Mont-Saint-Guibert

Belgium

Related companies and corporate

affiliations comments:   Other companies of the Ferro Group should be considered affiliates of the

Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank :                         Bank of America

Address :                      Australia

Account details :           Current Account

Name of bank :                         National Australia Bank Limited

Address :                      Australia

Account details :           Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

Mortgages :                  None reported.

 

 

Legal Fillings

Bankruptcy fillings :       None reported.

Court judgements :        None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

FINANCIAL DATA

 

Description

Source of financial statement :   Public Record Sources

Financial statement date :          31/12/11

Type of accounts :                    Full audited

Currency :                                 US Dollar (USD)

Consolidation type :                  Group Consolidated                  Group Consolidated

Currency :                                 US Dollar (USD)                        US Dollar (USD)

Denomination :                          (x1) One                                    (x1) One

Date of financial year end :        31/12/11                                    31/12/10

Length of accounts :                 12 months                                 12 months

Sale turnover / Income :             2,155,792,000                            2,101,865,000

Gross profit :                            413,187,000                             458,665,000

Profit before tax :                      65,936,000                                23,741,000

Net income :                             32,367,000                                7,273,000

Non current assets :                  809,752,000                              812,601,000

Current assets :                         630,899,000                             621,754,000

Inventories :                              228,813,000                              202,067,000

Total assets :                            1,440,651,000                            1,434,355,000

Current liabilities :                      324,634,000                              345,675,000

Non current liabilities :               533,523,000                              505,073,000

Total liabilities :                         858,157,000                              850,748,000

Share equity :                            582,494,000                             574,180,000

Retained earning :                     393,636,000                             362,164,000

 

Comments :                              The group’s consolidated financial information above relates to the Subject’s

Parent / Ultimate Holding Company Ferro Corporation and its subsidiaries.

 

OPERATION DETAILS

 

Main activities :                         The Subject engages in manufacturing and sales of specialty materials and

chemicals.

The Subject is a wholly owned subsidiary of Ferro Corporation, a public

listed company on New York Stock Exchange.

Ferro Corporation is a leading producer of specialty materials and

chemicals that are sold to a broad range of manufacturers who, in turn,

make products for many end-use applications. In approximately 40

manufacturing sites around the world, Ferro Corporation produces:

Electronic, Color and Glass Materials - Conductive metal pastes and

powders; polishing materials; high-performance dielectrics; high-quality

glazes, enamels, pigments, colors and other performance materials;

Polymer and Ceramic Engineered Materials - Polymer specialty materials;

engineered plastic compounds; pigment dispersions; glazes and frits;

porcelain enamels.

 

Product & services :      - Specialty materials: color stains, special glasses, glazes, decoration

colors, and special coating materials for the ceramic industry, as well as

pigments for the paint and plastics industries.

- Electronic Materials: high-purity powders, pastes, and tapes for many

electronic applications.

- Ceramic glaze coatings

- Chemicals

 

Purchases

International :                Asia, Europe, United States

 

Sales

Local :                          Yes

International :                Asia, Europe, United States

 

Property & Assets

Premises :                    The Subject operates from premises located at the verified heading

address consisting of production facilities, warehouse and administrative

office.

Branches :                    None reported.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :    US$ 41.385 billion

Gross domestic product - GDP :            US$ 1.235 trillion

GPP (Purchasing power parity) :            918.529 billion of International dollars

GDP per capita - current prices :            US$ 55,590

GDP - composition by sector :              agriculture: 4.1%

industry: 26%

services: 70%

 

Inflation :                                              2008: 4.4%

2009: 1.8%

2010: 2.8%

 

Unemployment rate :                             2008: 4.2%

2009: 5.6%

2010: 5.2%

 

Public debt

(General Government gross debt as

a % GDP):                                            2008: 11.6%

2009: 17.6%

2010: 22.3%

 

Government bond ratings :                    Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares:                                                             US$1.258 trillion

Largest companies in the country :         Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications)

 

Trade & Competitiveness Overview

Total exports :                                       US$210.7 billion

Exports commodities :                          coal, iron ore, gold, meat, wool, alumina, wheat

Total imports :                                       US$187.2 billion

Imports commodities :                           machinery and transport equipment, computers and office machines,

telecommunication equipment and parts, crude oil and petroleum products

Export - major partners :                        Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

Import - major partners :                        China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

UK 4.3%, Thailand 4.2%

FDI Inflows :                                         2007: US$45,477 million

2008: US$46,722 million

2009: US$22,572 million

FDI Outflows :                                       2007: US$16,822 million

2008: US$32,819 million

2009: US$18,426 million

Best countries for doing business :        10 out of 183 countries

Global competitiveness ranking :            16 (ranking by country on a basis of 133, the first is the best)

 

Country and Population Overview

Total population :                                  22.23 million

Total area :                                            7,692,024 km2

Capital :                                                Canberra

Currency :                                             Australian dollars (AUD)

Internet users as % of total

population:                                           74.00%

 

PAYMENT HISTORY

 

Purchase Term

International : L/C, Telegraphic transfer, D/P, Credit 30-90 days

 

Sales Term

Local : Prepayment, Bank transfer, D/P, Credit 30-90 days

International : L/C, Telegraphic transfer, D/P, Credit 30-90 days

 

Trade Reference/ Payment

 

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources            : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.92.25

Euro

1

Rs.78.38

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.