MIRA INFORM REPORT
|
Report Date : |
17.05.2013 |
IDENTIFICATION DETAILS
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Name : |
TOYO TIRE & RUBBER CO LTD |
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Registered Office : |
1-17-18 Edobori Nishiku Osaka 104-8340 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
Dec 1943 |
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Com. Reg. No.: |
1200-01-049019 (Osaka-Nishiku) |
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Legal Form : |
Limited
Company (Kabushiki Kaisha) |
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Line of Business : |
Tire
producer |
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No. of Employees : |
9,780 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 5,444.7 MILLION |
|
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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
TOYO
TIRE & RUBBER CO LTD
REGD NAME
Toyo Gomu Kogyo KK
MAIN OFFICE
1-17-18 Edobori Nishiku
Osaka 104-8340 JAPAN
Tel:
06-6441-8801 Fax: 06-6441-1847 -
URL: http://www.toyo-rubber.co.jp
E-Mail
address: info@toyo-rubber.co.jp
ACTIVITIES
Tire
producer
BRANCHES
Tokyo,
Sendai, Hyogo, Aichi, Hiroshima, other (Tot 15)
OVERSEAS
USA
(6), Canada (2), China (5), Australia, Hong Kong, Malaysia (2), Germany,
Italy,
Russia, other
FACTORIES
Sendai,
Kuwana, Hyogo
CHIEF EXEC
AKIRA
NOBUKI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 291,110 M*
PAYMENTSREGULAR CAPITAL Yen
30,484 M
TREND UP WORTH Yen 106,633 M
STARTED 1943 EMPLOYES 9,780
*..
Figures for 9 months due to change in accounting term
COMMENT
AUTO TIRE MFR
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX
CREDIT LIMIT: YEN 5,444.7 MILLION, 30 DAYS NORMAL TERMS
Unit: In Million Yen
Forecast figures for the 31/03/2014
fiscal term.
HIGHLIGHTS
This
is the fourth largest auto tire producer in Japan, created in 1945 through
merger between present Toyobo Co’s two affiliated rubber makers, including
Hirano Rubber (set up in 1943). Excels in
bus/truck tires and large-diameter tires bound for North America. Tied with Continental General Tire, USA. Also makes chemical industrial products
including urethane boards, and anti-seismic rubber. Overseas investment, so far lagged behind,
expanding in full scale. The company
will continue to invest exceeding depreciation costs, mainly in increasing tire
production, including in Malaysia. It
newly established a subsidiary specializing in chemical industrial products, in
aim to integrate development mfg and sales.
On 8/May/2013 It completed new tire plant in Malaysia, Toyo Tire
Malaysia Sdn Bhd, with annual production of 2.5 million tires, aiming to boost
its production capacity to 5 million tires annually by 2015, the firm says.
FINANCIAL INFORMATION
The sales
volume for Dec/2012 fiscal term for 9 irregular months due to the change in
accounting term to Jan/Dec from Apr/Mar amounted to Yen 281,110 million, a 9%
down, on an adjusted 12-month basis, from Yen 320,569 million in the previous
term. This is for irregular nine
months. Tire sales were stagnant for the
mainstay US market. Sales in European
market were also severe, but the full term contribution of product price hike
and lower-than-expected material prices offset.
New car sales in the Us, which stood at 16.15 million units in 2007,
grew by about 13% on the year to roughly 14.49 million units in 2012, marking a
third consecutive year of double-digit growth, according to US research firm
Autodata Corp. The recurring profit was
posted at Yen 13,645 million and the net profit at Yen 13,218 million,
respectively, compared with Yen 10,754 million recurring profit and Yen 8,704
million net profit, respectively, a year ago.
(Jan/Mar/2013
results): Sales 83,535 million, operating profit Yen 9,961 million, recurring
profit Yen 6,037 million, net profit Yen 4,234 million.
For the
current term ending Dec 2013 the recurring profit is projected at Yen 19,000
million and the net profit at Yen 12,000 million, on a 7% fall in turnover, to
Yen 360,000 million. Account settlement
returns to 12 months. Mainline tire
sales will inch down in Japan, but will grow in North America and emerging
countries including S/E Asia.
The
financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 5,444.1
million, on 30 days normal terms.
REGISTRATION
Date
Registered: Dec
1943
Regd
No.: 1200-01-049019 (Osaka-Nishiku)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 400 million shares
Issued: 254,358,146 shares
Sum: Yen 30,484 million
Major shareholders (%): Bridgestone Corp (7.8), Japan
Trustee Services T (7.6), Mitsubishi Corp (5.0), Master Trust Bank of Japan T
(4.8), Toyota Motor (3.7), Japan Trustee Services T9 (3.6), JTSB (Toyobo Co)
(3.0), MUFG (2.2), Nippon Life Ins (1.9), Yokohama Rubber (1.5); foreign owners
(16.0)
No. of shareholders: 10,390
Listed on the S/Exchange (s) of:
Tokyo
Managements: Kenji Nakakura, ch; Akira Nobuki,
pres; Hidenori Fukutomi, mgn dir; Tetsuya Kuze, mgn dir; Takuji Yamamoto, mgn
dir; James L Hawk, mgn dir; Hidehiko Takahashi, mgn dir; Haruhiro Shinjo, dir;
Koichi Ono, dir; Sadao Ichihara, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: Toyo
Tire Japan, Fukushima Rubber, other.
OPERATION
Activities: Manufactures auto tires (79%): tires,
inner tubes, camel backs, aluminum wheels, other related products; Diver Tech
(21%): chemical & industrial products, vibration-proof rubber, air springs,
rubber suspensions for bridges, building materials, beddings, OA equipment
parts, sporting goods, other; automobile parts, vibration-proof rubber goods,
weather strips, air suspensions, seal cushions, bumpers, other; others
Overseas Sales Ratio (57%)
Clients: [Automakers, wholesalers] Toyota
Motor, Mitsubishi Corp, Sojitz Corp, other
No. of
accounts: 800
Domestic
areas of activities: Nationwide
Suppliers:
[Mfrs, wholesalers] Ube Ind, Mitsubishi Chemical, Nagase & Co, Tokyo Rope
Mfg
Co, other
Payment record:
Regular
Location:
Business area in Osaka. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
MUFG
(Osaka)
Mizuho
Corporate Bank (Osaka)
Relations:
Satisfactory
FINANCES
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2012 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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291,110 |
320,569 |
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Cost of Sales |
217,079 |
238,082 |
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GROSS PROFIT |
74,031 |
82,487 |
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Selling & Adm Costs |
58,380 |
69,594 |
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OPERATING PROFIT |
15,650 |
12,893 |
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Non-Operating P/L |
-2,005 |
-3,139 |
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RECURRING PROFIT |
13,645 |
10,754 |
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NET PROFIT |
13,218 |
6,704 |
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BALANCE SHEET |
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Cash |
|
19,577 |
24,740 |
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Receivables |
|
73,461 |
60,539 |
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Inventory |
|
51,602 |
55,721 |
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Securities, Marketable |
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Other Current Assets |
11,682 |
13,863 |
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TOTAL CURRENT ASSETS |
156,322 |
154,863 |
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Property & Equipment |
146,194 |
132,131 |
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Intangibles |
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7,913 |
7,532 |
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Investments, Other Fixed Assets |
43,856 |
42,456 |
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TOTAL ASSETS |
354,285 |
336,982 |
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Payables |
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58,593 |
65,106 |
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Short-Term Bank Loans |
37,960 |
43,515 |
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Other Current Liabs |
33,110 |
39,207 |
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TOTAL CURRENT LIABS |
129,663 |
147,828 |
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Debentures |
|
28,000 |
23,000 |
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Long-Term Bank Loans |
66,113 |
55,486 |
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Reserve for Retirement Allw |
13,201 |
12,863 |
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Other Debts |
|
10,674 |
11,252 |
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TOTAL LIABILITIES |
247,651 |
250,429 |
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MINORITY INTERESTS |
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Common
stock |
30,484 |
30,484 |
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Additional
paid-in capital |
28,507 |
28,507 |
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Retained
earnings |
38,388 |
26,440 |
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Evaluation
p/l on investments/securities |
11,019 |
9,979 |
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Others |
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(1,659) |
(8,752) |
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Treasury
stock, at cost |
(106) |
(105) |
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TOTAL S/HOLDERS` EQUITY |
106,633 |
86,553 |
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TOTAL EQUITIES |
354,285 |
336,982 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2012 |
31/12/2011 |
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Cash
Flows from Operating Activities |
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15,874 |
13,601 |
||
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Cash
Flows from Investment Activities |
-21,064 |
-26,488 |
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Cash
Flows from Financing Activities |
-1,173 |
9,836 |
|||
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Cash,
Bank Deposits at the Term End |
|
19,573 |
24,651 |
||
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ANALYTICAL RATIOS Terms ending: |
31/12/2012 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
106,633 |
86,553 |
||
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Current
Ratio (%) |
120.56 |
104.76 |
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Net
Worth Ratio (%) |
30.10 |
25.68 |
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Recurring
Profit Ratio (%) |
4.69 |
3.35 |
||
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Net
Profit Ratio (%) |
4.54 |
2.09 |
||
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Return
On Equity (%) |
12.40 |
7.75 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
UK Pound |
1 |
Rs.83.65 |
|
Euro |
1 |
Rs.70.57 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.