MIRA INFORM REPORT
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Report Date : |
13.05.2013 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI STEEL MFG CO LTD |
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Registered Office : |
Harumi Park Bldg, 3-2-22 Harumi Chuoku Tokyo 104-8550 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
December, 1949 |
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Legal Form : |
Limited Company |
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Line of Business : |
Mfg of spring steel |
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No. of Employees : |
3,473 |
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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Maximum Credit Limit: |
Yen 3,983.8 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 – March, 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
MITSUBISHI STEEL MFG CO LTD
REGD NAME
Mitsubishi Seiko
KK
MAIN OFFICE
Harumi Park Bldg,
3-2-22 Harumi Chuoku Tokyo 104-8550 JAPAN
Tel:
03-3536-2111 Fax: 03-3533-2271
URL: http://www.mitsubishisteel.co.jp/
E-Mail address: web.master@mitsubishisteel.co.jp
ACTIVITIES
Mfg of spring
steel
BRANCHES
Nagoya, Osaka,
Fukuoka, Hiroshima
OVERSEAS
China (2), USA (2),
Canada, Philippines, Thailand, Indonesia, Germany
FACTORIES
Chiba, Utsunomiya,
Hirota, Muroran
CHIEF EXEC
NOBUMICHI CHINO,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 106,155 M
PAYMENTSREGULAR CAPITAL Yen
9,924 M
TREND SLOW WORTH Yen 58,540 M
STARTED 1949 EMPLOYES 3,473
COMMENT
MFR OF STEEL SPRING & STEEL BARS.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN
3,983.8 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2014
fiscal term
HIGHLIGHTS
This is a major mfr of specialty steel & precision spring for use in
high-tech products. Also expanding
fabricating & assembly operations.
The firm origins traced back to 1919 when Nagasaki Steel Works of
present Mitsubishi Heavy Ind separated.
Mainline includes special steel & forged & cast steel
products. Production is increased in
China. Increasing R&D personnel for
broadening product lineup of precision cast parts. Maintains 70% market share in dual hinges for
mobile phones. The company developed new
sewage-treatment systems for local governments, enabling to reduce volume of
sludge and to recycle emission gas. It
shifted to local materials for flat springs from Japanese materials in
Indonesia, in struggle to cut costs.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 106,155
million, a 20.1% down from Yen 132,862 million in the previous term. Sales of special steel for construction
machinery were in a prolonged slump.
Sales of forges and foundries for mining machinery fell marginally. Operating profits slipped further, reflecting
dropping operating rates. The recurring
profit was posted at Yen 3,721 million and the net profit at Yen 1,072 million,
respectively, compared with Yen 10,781 million recurring profit and Yen 3,171
million net profit, respectively, a year ago.
For the current term ending Mar 2014 the
recurring profit is projected at Yen 3,500 million and the net profit at Yen
2,000 million, respectively, on a 3.6% rise in turnover, to Yen 110,000
million. Sales of springs for automobile
will grow, but sales of special steel will decrease in the first half.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 3,983.8 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec 1949
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 360
million shares
Issued: 156,556,683
shares
Sum: Yen
9,924 million
Major
shareholders (%): Mitsubishi Heavy Industries (6.3), Meiji Yasuda Life Ins (4.5), MUFG
(3.9), Mitsubishi Corp (3.5), Master Trust Bank of Japan T (3.4), Japan Trustee
Services T (3.0), Mitsubishi UFJ Trust Bank (2.9), Tokio Marine & Nichido
Fire Ins (2.1), Company’s Kyoeikai Assn (1.8), Company’s Treasury Stock (1.6);
foreign owners (10.4)
No.
of shareholders: 12,031
Listed on the S/Exchange (s) of: Tokyo
Managements: Nobumichi Ohno,
pres; Hiroshi Satoh, mgn dir; Hideyuki Miyana, mgn dir; Motoyuki Satoh, mgn
dir; Nobuyuki Masuda, dir; Masayuki Masuda, dir; Shigeru Takagawa, dir; Tsuneo
Hosoi, dir;
Nothing
detrimental is known as to the commercial morality of executives.
Related
companies: Mitsubishi Steel Muroran Inc, Mitsubishi Nagasaki Machinery Mfg, MSM
Thailand, other.
OPERATION
Activities: Manufactures Special
Steel bars (49%), steel springs (32%), formed & fabricated products (9%),
machinery & systems (7%), others (3%).
Products include: springs, construction
machinery parts, automotive precision parts, steel castings, steel forgings,
magnetic materials, alloy powders, hot-rolled special steel bars, others
Overseas
sales ratio (About 12%):
Clients: [Mfrs,
wholesalers] Hitachi Construction Machinery Co, Komatsu Ltd, Mitsubishi Heavy
Ind, Toyota Motor, other.
No. of accounts: 1,000
Domestic areas of activities:
Nationwide
Suppliers: [Mfrs,
wholesalers] Matsubishi Metal Ind, PT Indo Spring, MSM Thailand, other.
Payment record: Regular
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References:
MUFG (H/O)
Mitsubishi UFJ
Trust Bank (H/O)
Relations:
Satisfactory
FINANCES
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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106,155 |
132,862 |
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Cost of Sales |
91,945 |
109,769 |
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GROSS PROFIT |
14,209 |
23,092 |
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Selling & Adm Costs |
11,337 |
11,996 |
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OPERATING PROFIT |
2,872 |
11,096 |
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Non-Operating P/L |
849 |
-315 |
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RECURRING PROFIT |
3,721 |
10,781 |
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NET PROFIT |
1,072 |
3,171 |
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BALANCE SHEET |
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Cash |
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10,571 |
9,686 |
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Receivables |
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21,469 |
29,189 |
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Inventory |
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12,453 |
13,818 |
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Securities, Marketable |
16,100 |
17,200 |
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Other Current Assets |
4,376 |
4,023 |
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TOTAL CURRENT ASSETS |
64,969 |
73,916 |
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Property & Equipment |
26,874 |
27,187 |
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Intangibles |
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3,440 |
2,727 |
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Investments, Other Fixed Assets |
17,308 |
16,081 |
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TOTAL ASSETS |
112,591 |
119,911 |
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Payables |
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15,163 |
19,715 |
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Short-Term Bank Loans |
8,104 |
8,096 |
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Other Current Liabs |
6,223 |
9,219 |
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TOTAL CURRENT LIABS |
29,490 |
37,030 |
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Debentures |
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Long-Term Bank Loans |
14,767 |
17,049 |
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Reserve for Retirement Allw |
6,821 |
6,818 |
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Other Debts |
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2,972 |
2,482 |
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TOTAL LIABILITIES |
54,050 |
63,379 |
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MINORITY INTERESTS |
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Common
stock |
9,924 |
9,924 |
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Additional
paid-in capital |
3,605 |
3,605 |
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Retained
earnings |
37,045 |
36,589 |
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Evaluation
p/l on investments/securities |
3,710 |
2,723 |
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Others |
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5,324 |
4,759 |
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Treasury
stock, at cost |
(1,068) |
(1,068) |
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TOTAL S/HOLDERS` EQUITY |
58,540 |
56,532 |
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TOTAL EQUITIES |
112,591 |
119,911 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2013 |
31/03/2012 |
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Cash
Flows from Operating Activities |
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5,701 |
1,153 |
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Cash
Flows from Investment Activities |
-3,309 |
-2,154 |
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Cash
Flows from Financing Activities |
-3,068 |
7,794 |
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Cash,
Bank Deposits at the Term End |
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26,671 |
26,886 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
58,540 |
56,532 |
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Current
Ratio (%) |
220.31 |
199.61 |
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Net
Worth Ratio (%) |
51.99 |
47.14 |
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Recurring
Profit Ratio (%) |
3.51 |
8.11 |
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Net
Profit Ratio (%) |
1.01 |
2.39 |
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Return
On Equity (%) |
1.83 |
5.61 |
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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.54.54 |
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|
1 |
Rs.84.19 |
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Euro |
1 |
Rs.71.11 |
INFORMATION DETAILS
|
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 |
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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.