MIRA INFORM REPORT
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Report Date : |
17.05.2013 |
IDENTIFICATION DETAILS
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Name : |
UBE INDUSTRIES LTD |
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Registered Office : |
1978-96 Kogushi Ube City Yamaguchi-Pref |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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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 : |
11217 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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.
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Source : CIA |
Company NAME
UBE INDUSTRIES Ltd
REGD NAME
Ube Kosan KK
MAIN OFFICE
Seavans North Bldg, 1-2-1 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 626,022 M
PAYMENTSREGULAR CAPITAL Yen
58,435 M
TREND SLOW WORTH Yen 250,753 M
STARTED 1954 EMPLOYES 11,217
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 31/03/2014
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
company will suspend operation at Sakai Plant in March 2014 to concentrate
domestic production at Ube Plant. In
cement business, it is reducing low-profit exports and responding to brisk
domestic demand with full capacity production.
FINANCIAL INFORMATION
The sales volume for Mar/2013 fiscal term amounted to Yen 626,022
million, a 2.0% down from Yen 638,653 million in the previous term. Deceleration of business expansion in China
and other Asian countries brought a sense of a slowdown of the world
economy. By Divisions, Chemicals &
Resins down by Yen 11.6 billion to Yen 219.3 billion; Functional Materials
& Fine Chemicals down by Yen 3.2 billion to Yen 61.1 billion; Cement &
Construction Materials down Yen 0.7 billion to Yen 208.3 billion; Machinery
& Metal Molding down by Yen 1.2 billion to Yen 71.3 billion. The recurring profit was posted at Yen 28,045
million and the net profit at Yen 8,265 million, respectively, compared with
Yen 40,808 million recurring profit and Yen 22,969 million net profit,
respectively, a year ago. .
For the current term ending Mar 2014 the recurring profit is projected
at Yen 28,500 million and the net profit at Yen 14,500 million, on a 7.8% rise
in turnover, to Yen 675,000 million.
Nylon prices will remain low. But
cement sales will increase, with post-disaster reconstruction demand getting
into full swing. Sales of battery
material will bounce back.
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 (6.9), Master Trust Bank of Japan T (5.8), Zenkyoren (3.4), Japan Trustee Services T9 (3.3), State Street Bank & Trust (2.7), JP Morgan Chase Bank (2.5), Nippon Life Ins (1.9), Nomura Lux Multi Currency J818517 (1.9), BBH493025 Black Rock G Allocation F (1.4); foreign owners (31.4)
No. of shareholders: 55,483
Listed on the S/Exchange (s) of: Tokyo, Fukuoka
Managements: Hiroaki Tamura, ch; Michio Takeshita, 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: |
31/03/2013 |
31/03/2012 |
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INCOME STATEMENT |
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Annual Sales |
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626,022 |
638,653 |
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Cost of Sales |
517,769 |
512,447 |
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GROSS PROFIT |
108,253 |
126,206 |
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Selling & Adm Costs |
78,291 |
80,200 |
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OPERATING PROFIT |
29,962 |
46,006 |
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Non-Operating P/L |
-1,917 |
-5,198 |
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RECURRING PROFIT |
28,045 |
40,808 |
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NET PROFIT |
8,265 |
22,969 |
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BALANCE SHEET |
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Cash |
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36,280 |
33,267 |
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Receivables |
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143,223 |
150,108 |
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Inventory |
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81,754 |
81,266 |
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Securities, Marketable |
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Other Current Assets |
26,142 |
19,776 |
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TOTAL CURRENT ASSETS |
287,399 |
284,417 |
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Property & Equipment |
323,717 |
313,949 |
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Intangibles |
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4,876 |
4,941 |
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Investments, Other Fixed Assets |
69,892 |
61,658 |
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TOTAL ASSETS |
685,884 |
664,965 |
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Payables |
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83,247 |
88,811 |
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Short-Term Bank Loans |
102,559 |
97,073 |
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Other Current Liabs |
65,130 |
81,507 |
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TOTAL CURRENT LIABS |
250,936 |
267,391 |
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Debentures |
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30,000 |
15,100 |
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Long-Term Bank Loans |
110,390 |
122,151 |
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Reserve for Retirement Allw |
6,544 |
6,534 |
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Other Debts |
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37,261 |
29,382 |
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TOTAL LIABILITIES |
435,131 |
440,558 |
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MINORITY INTERESTS |
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Common
stock |
58,435 |
58,435 |
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Additional
paid-in capital |
28,465 |
28,459 |
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Retained
earnings |
135,981 |
132,751 |
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Evaluation
p/l on investments/securities |
2,436 |
1,427 |
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Others |
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34,190 |
23,957 |
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Treasury
stock, at cost |
(8,754) |
(20,622) |
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TOTAL S/HOLDERS` EQUITY |
250,753 |
224,407 |
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TOTAL EQUITIES |
685,884 |
664,965 |
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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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46,126 |
40,630 |
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Cash
Flows from Investment Activities |
-39,063 |
-43,550 |
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Cash
Flows from Financing Activities |
-5,872 |
-12,695 |
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Cash,
Bank Deposits at the Term End |
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35,962 |
33,107 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
250,753 |
224,407 |
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Current
Ratio (%) |
114.53 |
106.37 |
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Net
Worth Ratio (%) |
36.56 |
33.75 |
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Recurring
Profit Ratio (%) |
4.48 |
6.39 |
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Net
Profit Ratio (%) |
1.32 |
3.60 |
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Return
On Equity (%) |
3.30 |
10.24 |
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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.54.77 |
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UK Pound |
1 |
Rs.83.31 |
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Euro |
1 |
Rs.70.46 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.