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Report Date : |
02.03.2013 |
IDENTIFICATION DETAILS
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Name : |
FLETCHER INSULATION (VIC) PTY LTD |
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Formerly Known As : |
INSULATION SOLUTIONS PTY LTD |
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Registered Office : |
Level 11, Tower B, Zenith Centre 821 Pacific Highway Chatswood New South Wales 2067 |
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Country : |
Australia |
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Financials (as on) : |
30.06.2012 (Group Consolidated) |
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Date of Incorporation : |
29.06.1998 |
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Com. Reg. No.: |
083169402 |
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Legal Form : |
Australian Proprietary Company |
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Line of Business : |
Manufacturing, sales & distribution of insulation products. |
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No. of Employees : |
500 employees (Fletcher Insulation Group); 20,000 employees (Fletcher Building Group) |
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 : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Australia |
A1 |
A1 |
|
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 |
AUSTRALIA - ECONOMIC OVERVIEW
Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, 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 also has a large services sector and is a significant exporter of natural resources, energy, and food. Key tenets of Australia''s trade policy include support for open trade and the successful culmination of the Doha Round of multilateral trade negotiations, particularly for agriculture and services. The Australian economy grew for 17 consecutive years before the global financial crisis. Subsequently, the former RUDD government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the Australian economy rebound after just one quarter of negative growth. The economy grew by 1.4% during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in 2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late 2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget deficit is expected to peak below 4.2% of GDP and the government could return to budget surpluses as early as 2015. Australia was one of the first advanced economies to raise interest rates, with seven rate hikes between October 2009 and November 2010. The GILLARD government is focused on raising Australia''s economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. Australia is engaged in the Trans-Pacific Partnership talks and ongoing free trade agreement negotiations with China, Japan, and Korea.
Source
: CIA
Verified Address
Subject name : FLETCHER INSULATION (VIC) PTY LTD
Business address :
161 Arthur Street
Town : Homebush
Province : New South Wales
Zip/postal code : 2140
Country : Australia
Tel : +61 2 97529200
Fax : +61 2 97643175
Website : www.insulation.com.au
Registered address
: Level 11, Tower B, Zenith Centre
821 Pacific Highway
Town : Chatswood
Province : New South Wales
Zip/postal code : 2067
Country : Australia
Comments : The provided address 600
Woodstock Avenue, Rooty Hill, NSW 2766, Australia
belongs to the Subject's Sydney sales office.
Executive Summary
Date founded or
registered : 29/06/1998
Legal form : Australian
Proprietary Company
Chief executive : David Isaacs
Issued & paid up
capital : AUD 37,180,028
Sales turnover : NZD 8,873,000,000 (Group
consolidated 12 months, 30/06/2012)
Net income : NZD 193,000,000
(Group consolidated 12 months, 30/06/2012)
Total fixed assets
: NZD 7,497,000,000
(Group consolidated 12 months, 30/06/2012)
Line of business :
Manufacturing, sales
& distribution of insulation products.
Staff employed : 500 employees (Fletcher
Insulation Group); 20,000 employees (Fletcher Building
Group)
Company Analysis
Country risk : Country risk is minimal
Operation trend : Operational trend is steady
Management
experience : Management is adequately experienced
Group financial
performance : Group financial performance is good
Organisation
structure : Organisational structure is stable
Detrimental : No detrimental found
Payment history : No payment delays noted
Credit amount
asked : Not described.
Comments : Larger credit can still be
considered. The Subject is well positioned in the market
and the financial stability of the group is positive.
Registry Data
Registration date
: 29/06/1998
Legal form : Australian Proprietary Company
Registration no Australian Company Number:
083169402
Registered
authority : Australian Securities and Investments
Commission
Fiscal/ Tax no : Australian Business Number:
15083169402
Registry status : Live/Active
Previous name : INSULATION SOLUTIONS PTY LTD
TOWNLUX PTY. LIMITED (initial)
Change of legal
form : None reported.
Key Management
Name : David Isaacs
Designation : Chief Executive Officer
Name : Darren Johnston
Designation : General Manager
Name : Craig Wood
Designation : Financial Manager
Appointments
Name : Timothy Charles Richards
Designation : Director
Appointment date :
16/01/12
Address : 114 Benson Road
Remuera, Auckland 1050
New Zealand
Biography : Born on 31-08-1966 in Orange, New South
Wales, Australia.
Name : Colin Richard Zeitlyn
Designation : Director
Appointment date :
06/08/12
Address : 21 Greville Street
Chatswood, NSW 2067
Australia
Biography : Born on 08/03/1957 in Rochester Kent,
United States.
Name : Wendy Khi Tshing Kong
Designation : Company Secretary
Appointment date :
30/04/99
Address : 5 One Bayside Terrace
Cabarita, NSW 2137
Australia
Biography : Born on 24-01-1961 in Sabah, Malaysia.
Staff employed :
500 employees (Fletcher Insulation Group); 20,000 employees (Fletcher Building
Group)
Composition
Authorized Capital
: AUD 37,180,028
No of shares : 94,500,001 Ordinary Shares
Share par value : No par value
Issued capital : AUD 37,180,028
Paid up capital : AUD 37,180,028
How listed : Full
List
Composition
Shareholder name :
INSULATION SOLUTIONS HOLDINGS PTY
LIMITED
Address : Level 11, Tower B Zenith
Centre
821 Pacific Highway
Chatswood, NSW 2067
Australia
No. of shares : 94,500,001 Ordinary Shares
% of shares : 100%
Structure
Name : FLETCHER BUILDING LIMITED
Affiliation type :
Ultimate Holding Company
Address : 810 Great South Road
Penrose, Auckland, 1061
New Zealand
Comments : Fletcher Building Limited provides
building products, construction materials, and
services worldwide. The company’s Building Products division offers
gypsum
plasterboards; metal roof tiles; aluminum extrusions; stainless steel
sinks; and
thermal and acoustic insulation products, ceiling and wall systems, and
passive
fire protection products, as well as distributes building wraps, foils,
papers, and
concrete underlays. Its Concrete division provides ready-mix concrete
and
concrete masonry products for use in residential, commercial, and
industrial
construction, as well as in public works and infrastructure; pipeline
products and
solutions; aggregates and sand; engineered solutions; manufactures and
exports
cement in the south Pacific region; and supports construction and
infrastructure
development activities. The company’s Construction division operates as
a
construction contractor and residential builder. Its Crane division
offers plastic
pipeline systems, electrical supplies, and copper tubes; timber and
building
materials; and plumbing and bathroom products and solutions. The
company’s
Distribution division supplies building materials to commercial and
residential
construction markets. Its Laminates and Panels division provides
decorative
surface laminates, component products, particleboards, medium density
fiber
boards, and panels. The company’s Steel division offers metal coating
systems;
steel roofing, cladding, structural, and rainwater products; pre-painted
metals
products; steel building products, such as walling, gutters and fascias,
purlins,
flooring, structural formwork, and roller doors; and wire rod,
galvanized wire and
reinforcing bars, and coil products. This division is also involved in
processing and
distributing steel and related products; and supplying reinforcing steel
and mesh
products. Fletcher Building Limited also offers property management and
finance
services. The company was founded in 1909 and is headquartered in
Auckland,
New Zealand.
Name : INSULATION SOLUTIONS HOLDINGS PTY
LIMITED
Affiliation type :
Parent Company
Address : Level 11, Tower B Zenith Centre
821 Pacific Highway
Chatswood, NSW 2067
Australia
Comments : Insulation Solutions Holdings Pty Limited
manufactures and distributes glasswool
and reflective foil insulation products across Australia and also acts
as an
investment holding company.
Name : FLETCHER INSULATION PTY LIMITED
Affiliation type :
Sister Company
Address : Level 11, Tower B Zenith Centre
821 Pacific Highway
Chatswood, NSW 2067
Australia
Name : TAF BUILDING SYSTEMS PTY LIMITED
Affiliation type :
Sister Company
Address : Level 11, Tower B Zenith Centre
821 Pacific Highway
Chatswood, NSW 2067
Australia
Name : FORMICA CORPORATION
Affiliation type :
Sister Company
Address : 10155 Reading Road
Cincinnati, OH 45241
United States
Related companies
and corporate
affiliations comments:
Other companies of the Fletcher Group
should be considered affiliates of the
Subject.
Bank Details
Name of bank : Australia and New Zealand Banking Group 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 : Satisfied Charges:
ASIC Charge Number: 872337
Date Registered: 01-07-2002
Charge type: Both Fixed & Floating
Date Created: 28-06-2002
Chargees Name: ANZ FIDUCIARY SERVICES PTY LTD
ASIC Charge Number: 872338
Date Registered: 01-07-2002
Charge type: Both Fixed & Floating
Date Created: 28-06-2002
Chargees Name: ANZ FIDUCIARY SERVICES PTY LTD
ASIC Charge Number: 872345
Date Registered: 01-07-2002
Charge type: Both Fixed & Floating
Date Created: 28-06-2002
Chargees Name: ANZ FIDUCIARY SERVICES PTY LTD
Legal Fillings
Bankruptcy
fillings : None reported.
Court judgements :
None reported.
Tax liens : None reported.
Others : None reported.
Description
Source of
financial statement : Public Record
Sources
Financial
statement date : 30/06/12
Type of accounts :
Full audited
Currency : New Zealand,
Dollar (NZD)
Exchange rate : 1 USD = NZD 1.21 as of
26-02-2013
Summarized Financial Information
Consolidation type
: Group Consolidated Group Consolidated
Currency : New Zealand,
Dollar (NZD) New Zealand, Dollar
(NZD)
Denomination : (x1) One (x1) One
Date of financial
year end : 30/06/12 30/06/11
Length of accounts
: 12 months 12 months
Sale turnover /
Income : 8,873,000,000 7,416,000,000
Gross profit : 2,226,000,000 1,850,000,000
Operating profit :
403,000,000 492,000,000
Profit before tax
: 251,000,000 370,000,000
Net income : 193,000,000 291,000,000
Non current assets
: 4,407,000,000 4,388,000,000
Current assets : 3,090,000,000 3,104,000,000
Inventories : 1,434,000,000 1,539,000,000
Total assets : 7,497,000,000 7,492,000,000
Current
liabilities : 1,915,000,000
1,700,000,000
Non current
liabilities : 1,979,000,000 2,092,000,000
Total liabilities
: 3,894,000,000 3,792,000,000
Share equity : 3,603,000,000 3,700,000,000
Comments : The group’s consolidated financial
information above relates to the Subject’s
Ultimate Holding Company Fletcher Building Limited and all its
subsidiaries which
include the Subject.
Main activities : The Subject is engaged in manufacturing, sales
& distribution of insulation
products.
Insulation products are primarily used for residential and commercial
building and industrial applications for their thermal, acoustic and/or
condensation control properties.
Applications in residential and commercial buildings include roof,
ceiling
and wall (or partition) insulation. Industrial applications include:
original
equipment manufacturing; insulating low and high temperature pipes and
air-conditioning systems; and cold insulation applications.
Fletcher Insulation is part of the Fletcher Building Group, one of the
largest
building materials companies in Australasia, with over 20,000 employees
worldwide.
Fletcher Building has grown from being a New Zealand based building
materials company into a major international business with plants and
distribution centres in many, far-flung locations.
The companies that make up Fletcher Building manufacture and market a
diverse range of products and services, including, but not limited to,
the
following:
- Concrete
- Aluminium Extrusion
- Sink Ware
- Plasterboard
- Steel Building Products
- Metal Roofing
- Laminates and Panels
- Pre-cast Concrete Products
- Insulation
- Sheds and Metal Buildings
- Residential and Commercial Construction
- Aggregates, Sand and Cement
In Australia, Laminex, Stramit, Rocla, Tasman Sinkware - makers of
Oliveri
stainless steel sinks, Fair Dinkum Houses and Sheds and Tasman Access
Floors are also part of the Fletcher Building group.
Formica, which operates in the USA, Europe and Asia, is also part of the
Fletcher Building group, making Fletcher the largest manufacturers of
high
pressure laminates in the world.
Fletcher Building operates in New Zealand, Australia, Europe, Canada,
North and South America, Asia and the South Pacific. Fletcher Building
Limited is also currently the largest listed company in New Zealand,
having
recently overtaken Telecom New Zealand, with a market capitalisation of
over NZ$4.5 billion. The company was split from Fletcher Challenge in
2001, formerly New Zealand's largest business and multinational.
Product &
services : Insulation products:
- Residential thermal and acoustic insulation products: glasswool,
reflective
foil and polyester insulation products for walls, roofs etc
- Commercial acoustic insulation products: building blanket for metal
deck
roofing, Sisalation reflective foil insulation for roofing and wall
application,
air conditioning ductwork or partition wall insulation.
- Industrial insulation products: pipe lagging, vessel blanket
insulation, foil
insulation, rubber pipe insulation and high temperature sheet insulation
Brand : FLETCHER INSULATION: Pink Batts, Sisalation, Insulco Fat Batt,
Pink
Batts Silencer, Poly Batts, SonoBatts, Permastop, Vapa-Chek, Insulco
Acousti-Therm Batts and Duroid
Purchases
International : Worldwide
Sales
Local : Yes
International : Pacific Islands
Key events : 20 February 2013
Fletcher issues grim outlook for Australia building sector
Fletcher Building, Australasia's biggest maker of building products,
issued
a grim outlook for the Australian construction sector and reported
weaker
half-year profits than analysts had expected, sending its shares to a
one-month low.
The news underscores how Fletcher continues to struggle in Australia,
which accounts for almost half of its revenue, because of a moribund
housing market that has hurt demand for its building products including
laminates and insulation.
Net profit edged up 1 percent to NZ$146 million ($123.60 million) in its
financial first half that ended Dec. 31, Fletcher said on Wednesday,
below
the average forecast for NZ$151.1 million in a Reuters poll of four
analysts.
In the Australian market, Fletcher said its adjusted operating earnings
before interest and tax (EBIT) had fallen 12 percent from a year earlier
to
NZ$106 million.
"In Australia, the downturn in residential consents and continued
weak
approval levels in commercial construction are likely to mean that
volumes
remain weak," Chief Executive Officer Mark Adamson told reporters.
"We're rapidly developing the view that it is unlikely there will
be an
improvement in the first six months of the next fiscal year," he
said.
Shares of the New Zealand company fell 6 percent to NZ$8.75 after the
results announcement.
"They're not seeing any market improvement coming through the
Australian
market in the near term," said Rickey Ward, head of equities at
Tyndall
Investment Management, adding that this had taken investors by surprise.
Fletcher earns 47 percent of its revenue in Australia, 41 percent in New
Zealand, and 12 percent from Asia, Europe and the United States.
While the Australian market would continue to provide headwinds,
Fletcher
reaffirmed its EBIT forecast of NZ$560 million to NZ$610 million in the
financial year ending in June.
Cost-cutting measures will help lift earnings down the line, Adamson
said,
adding that its new programme would not be slash-and-burn or see
large-scale plant closures, but would see hundreds of jobs lost over
time in
New Zealand and Australia.
"We talked with the analyst community about a number around the
NZ$70
million mark in terms of long-term sustainable improvement in
earnings," he
said, referring to the effect of cost-cutting. "We expect ... to
get some
improvement in 2014, but principally in 2015/16."
A pick-up in reconstruction activity in the earthquake-devastated
Canterbury region boosted the company's domestic operating earnings by
roughly 30 percent to NZ$124 million in the July-December half.
Fletcher is spearheading reconstruction in Christchurch and the
surrounding region after two devastating earthquakes in 2010 and 2011.
Fletcher reported an interim dividend of 17 cents per share, unchanged
from a year earlier.
Source: Reuters
13 January 2012
Fletcher building raises long-term debt
Fletcher Building said it had raised US$300 million ($378m) in long-term
debt through a private placement (USPP) with US debt investors.
The placement has two maturities of 10 and 12 years.
Proceeds have been used to repay borrowings drawn under Fletcher
Building's principal bank facilities, Fletcher Building said in a
statement.
The funds raised have been swapped into Australian dollars in a mix of
fixed and floating interest rates. The company has previously accessed
the
USPP market for longer term funding.
"With the completion of this transaction we have been able to
extend the
debt maturity profile which suits the long-term nature of our
business,''
Fletcher Building's chief financial officer Bill Roest said.
A handful of New Zealand corporates have successfully raised funds on
the United States private placement market over the last year or so.
The USPP market is made up mainly of big insurance companies on the
lending side, and utility-style companies on the borrowing side.
The attraction for insurers is that they can pick up interest rates well
in
excess of what can be achieved from their US treasury equivalents, which
remain unusually low while the US government tries to stimulate
activity.
Despite America's troubled economy, funds have continued to flow into
pension funds and insurance schemes, but the investment alternatives for
conservative insurers, who typically have longer-term investment
horizons,
have been limited because of depressed economic conditions in the US.
Source: www.odt.co.nz
13 November 2012
Fletcher Building Ltd's Formica Laminates (India) To Acquire Biz Assets
Of
Decorative Lam For $6.68 Million-Business Line
Business Line reported that Fletcher Building Ltd's Formica Laminates
(India) has inked a deal of $6.68 million to buy business assets of
Decorative Laminate Manufacturing Division of Well Pack Papers &
Containers in Gujarat. Formica Laminates (India), the Indian arm of
Fletcher Building, bought the business assets included land, buildings
and
machinery, a company statement said. The transaction was planned for
completion at the end of this calendar year.
Source: Reuters
Property & Assets
Premises : The Subject operates from premises
located at the verified heading
address consisting of administrative office and warehouse.
Branches : In addition, the Subject operates from 14
other branches consisting of
production facilities and sales offices located across Australia. The
Subject's manufacturing plants is located in Melbourne and Sydney.
Gross Domestic Products (GDP) & Economic
Overview
Central bank : Reserve
Bank of Australia
Reserve of foreign
exchange & gold : US$ 43.879
billion
Gross domestic
product - GDP : US$ 1.586
trillion
GPP (Purchasing
power parity) : 954.296
billion of International dollars
GDP per capita -
current prices : US$ 68,916
GDP - composition
by sector : agriculture:
4%
industry: 25.6%
services: 70.4%
Inflation : 2009:
1.8%
2010: 2.8%
2011: 3.4%
Unemployment rate
: 2009: 5.6%
2010: 5.2%
2011: 5.1%
Public debt
(General Government
gross debt as
a % GDP): 2009:
16.9%
2010: 20.4%
2011: 22.9%
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 : 2008:
US$46,843 million
2009: US$25,716 million
2010: US$32,472 million
FDI Outflows : 2008:
US$33,604 million
2009: US$16,160 million
2010: US$26,431 million
Best countries for
doing business : 10 out of 183
countries
Global
competitiveness ranking : 20
(ranking by country on a basis of 142, 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: 76%
Purchase Term
International :
L/C, Prepayment, Credit up to 120 days
Sales Term
Local :
Prepayment, Credit up to 120 days
International : L/C,
Prepayment, Credit up to 120 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.54.48 |
|
|
1 |
Rs.82.72 |
|
Euro |
1 |
Rs.71.27 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.