MIRA INFORM REPORT
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Report Date : |
05.09.2013 |
IDENTIFICATION DETAILS
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Name : |
KAWASAKI HEAVY INDUSTRIES LTD |
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Registered Office : |
Kobe Crystal Tower, 1-1-3 Higashi-Kawasakicho Chuoku Kobe 560-8680 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
Oct 1986 |
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Com. Reg. No.: |
1400-01-003719 (Kobe-Chuoku) |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturer of heavy electric
machinery & engineering works |
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No. of Employees : |
34,010 |
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 : |
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 |
A2 |
A2 |
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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,
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Source : CIA |
COMPANY NAME
KAWASAKI HEAVY
INDUSTRIES LTD
REGD NAME
Kawasaki Jyukogyo
KK
MAIN OFFICE
Kobe Crystal
Tower, 1-1-3 Higashi-Kawasakicho Chuoku Kobe 560-8680 JAPAN
Tel:
078-371-9530
Fax: 078-371-9566
E-Mail
address: (through the URL to each
division)
ACTIVITIES
Mfg of
heavy electric machinery & engineering works
BRANCHES
Tokyo,
Sapporo, Sendai, Hyogo, Akashi, other (Tot 28)
OVERSEAS
China
(2), Taipei, Seoul, Jakarta, Singapore, Kuala Lumpur, Bangkok, USA (2), Brazil,
UK, Netherlands
(Subsidiaries): USA (6), Canada, Brazil (2), UK (3), Germany (4), Netherlands (3), Korea, China (4, including Hong Kong), Thailand, Philippines, Indonesia, Australia
FACTORIES
Kobe,
Akashi, Hyogo, Gifu, other (Tot 10)
OVERSEAS
USA
(4), Brazil, UK, China (2), Philippines, Indonesia, Thailand
CHIEF EXEC
SHIGERU
MARUYAMA, PRES & CEO
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 1,288,881 M
PAYMENTS REGULAR CAPITAL Yen
104,484 M
TREND SLOW WORTH Yen
349,881 M
STARTED 1896 EMPLOYES 34,010
COMMENT
MFR OF HEAVY ELECTRIC MACHINERY & ENGINEERING
WORKS.
FINANCIAL SITUATION CONSIDERED
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 in 1878 by Shozo Kawasaki for mfg
Western-style oceangoing steel ships, on his account, and was incorporated in
1986. This is a comprehensive heavy
electric machinery mfg & engineering company, with strength in railroad
rolling stocks, motorcycles and medium-sized gas turbines. Also major shipbuilder. Since incorporated spun off various
divisions, such as steel, transportation, etc into independent firms, which now
constitute its main group firms. In Oct
2006, spun off its environmental operations (handling refuse incineration
facilities & recycling facilities for natural resources). Because construction of major refuse
incineration facilities peaked the firm decided to restructure operations. Highly competitive in railway rolling stock
& medium-size gas turbines.
Purchased cement business from IHI.
Joined environmental equipment production in China. New shipbuilding yard in Dalian (China)
completed in 2010. In rolling stock, the
firm puts hopes in North America, rich with a number of railway projects. It won orders for an LNG ship in June 2012
for the first time in five terms. It is
constructing a new motorcycle plant in S/E Asia. It plans to start the direct production of
sports motorcycles in India. Currently,
Kawasaki consigns production there to Bajaj Auto Ltd, a local firm, but plans
to complete the switch to its own production using its own workers within this
year.
Intra-company
Organizations: Ship & Offshore Structure Company, Rolling Stock Company,
Aerospace Company, Gas Turbine & machinery Company, Plants &
Infrastructure Company, Motorcycles & Engine Company, Precision Machinery
Company.
Business
merger with Mitsui Engineering & Shipbuilding wound up, but the company
will possibly consider tie-ups in marine resource business. In the energy business, it will sell
distributed power systems using small gas turbines, including to S/E Asia.
FINANCIAL INFORMATION
The sales
volume for Mar/2013 fiscal term amounted to Yen 1,288,881 million, a 1.1% down
from Yen 1,303,778 million in the previous term. Sales of mainline hydraulic equipment for
construction machinery plunged. Operating
profit shrunk. The recurring profit was
posted at Yen 39,328 million and the net profit at Yen 30,864 million,
respectively, compared with Yen 63,627 million recurring profit and Yen 23,323
million net profit, respectively, a year ago.
(Apr/Jun/2013
results): Sales Yen 282,509 million (down 0.3%), operating profit Yen 16,752
million (up 164.4%), recurring profit Yen 9,400 million (down 19.8%), net
profit Yen 4,496 million (down 25.4%).
(% compared with the same period last year).
For
the current term ending Mar 2014 the recurring profit is projected at Yen
53,000 million and the net profit at Yen 34,000 million, respectively, on a
7.0% rise in turnover, to Yen 1,380,000 million. Motorcycle sales will soar thanks to the
weaker Yen, and the aircraft business will continue to show improved profit
margin. Below-cost orders for railway
rollingstock will come to an end, and hydraulic equipment sales for machinery
in China will bottom out. Operating
profits will recover.
The
financial situation is considered FAIR to GOOD and good for ORDINARY business
engagements.
REGISTRATION
Date Registered: Oct 1986
Regd No.: 1400-01-003719
(Kobe-Chuoku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 3,360 million shares
Issued:
1,669,629,122 shares
Sum: Yen 104,484 million
Major shareholders (%)
Japan Trustee Services T (5.1), Master Trust Bank of Japan T
(4.8), Nippon Life Ins (3.4), Mizuho Bank (3.4), JFE Steel (3.3), Company’s
Kyusaikai Assn (2.1), SSBT OD05 Omnibus Acct Treaty (2.0), Employees’ S/Holding
Assn (2.0), Tokio Marine & Nichido Fire Ins (1.6), SMBC (1.6); foreign
owners (20.4).
No. of shareholders
127,093
Listed on the S/Exchange (s) of
Tokyo,
Nagoya
Managements
Shigeru Maruyama,
pres; Kyohei Matsuoka, v pres; Hiroshi Takata, v pres; Makoto Sonoda, s/mgn
dir; Joji Iki, s/mgn dir; Eiji Inoue, s/mgn dir; Yoshinori Kanehana, s/mgn dir;
Minoru Makimura, s/mgn dir; Akio Murakami, s/mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies
Kawasaki Shipyard, Kawasaki
Precision Machinery,
NIPPI Corp, Kawasaki Thermal
Engineering, Kawasaki Motors Corp, Kawasaki
Safety Service Ind, Kawaju
Shoji, other
OPERATION
Activities: Comprehensive heavy electric machinery
mfg & engineering works:
(Sales breakdown by divisions):
Shipbuilding (7%): new-building ships, ship repairs,
ship remodeling, other;
Railway Rolling Stock (10%): railway rolling stocks, civil-engineering machinery &
equipment, snow plow, crushing machines;
Aerospace (19%): aircraft, spacecraft, other;
Gas Turbine & Machinery (16%): jet engines, multi-purpose gas turbines, generating
machinery;
Industrial Plants, Environment & Steel Structure (9%):
industrial machinery & plants, boilers, environmental machinery &
equipment, steel structures;
Others (39%): hydraulic equipment, fire-preventive
equipment, medical equipment, management of welfare facilities, other.
Overseas Sales Ratio (52%)
Clients: [Mfrs, wholesalers] Sojitz Corp, Marubeni
Corp, Sumitomo Corp, Itochu Corp, JR West Japan, Kawasaki Machine Systems,
other
No. of
accounts: 3,000
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Sojitz Corp,
Sumitomo Corp, Sojitz Aerospace, Itochu Corp, Marubeni Corp, Kawasho Corp,
Fujitsu Ltd, Maeda Construction, Itochu Aviation, Kawajyu Finance, Mitsubishi
Heavy Ind, Fuji Heavy Ind, other.
Payment record:
Regular
Location:
Business area in Kobe. Office premises
at the caption address are leased and maintained satisfactorily.
Bank References
Mizuho
Corporate Bank (H/O)
SMBC
(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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1,288,881 |
1,303,778 |
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Cost of Sales |
1,085,469 |
1,088,918 |
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GROSS PROFIT |
203,412 |
214,860 |
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Selling & Adm Costs |
161,349 |
157,375 |
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OPERATING PROFIT |
42,062 |
57,484 |
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Non-Operating P/L |
-2,734 |
5,543 |
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RECURRING PROFIT |
39,328 |
63,027 |
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NET PROFIT |
30,864 |
23,323 |
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BALANCE SHEET |
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Cash |
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38,525 |
34,316 |
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Receivables |
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432,649 |
404,054 |
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Inventory |
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460,104 |
421,344 |
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Securities, Marketable |
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Other Current Assets |
85,535 |
107,472 |
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TOTAL CURRENT ASSETS |
1,016,813 |
967,186 |
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Property & Equipment |
305,792 |
274,750 |
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Intangibles |
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19,446 |
18,786 |
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Investments, Other Fixed Assets |
124,239 |
101,417 |
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TOTAL ASSETS |
1,466,290 |
1,362,139 |
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Payables |
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281,062 |
310,775 |
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Short-Term Bank Loans |
213,510 |
137,568 |
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Other Current Liabs |
287,968 |
247,659 |
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TOTAL CURRENT LIABS |
782,540 |
696,002 |
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Debentures |
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70,000 |
60,000 |
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Long-Term Bank Loans |
184,362 |
198,737 |
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Reserve for Retirement Allw |
62,300 |
75,052 |
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Other Debts |
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17,207 |
16,425 |
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TOTAL LIABILITIES |
1,116,409 |
1,046,216 |
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MINORITY INTERESTS |
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Common
stock |
104,484 |
104,484 |
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Additional
paid-in capital |
54,393 |
54,393 |
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Retained
earnings |
198,528 |
176,414 |
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Evaluation
p/l on investments/securities |
4,524 |
3,989 |
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Others |
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(12,021) |
(23,336) |
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Treasury
stock, at cost |
(27) |
(22) |
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TOTAL S/HOLDERS` EQUITY |
349,881 |
315,922 |
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TOTAL EQUITIES |
1,466,290 |
1,362,139 |
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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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28,101 |
84,737 |
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Cash
Flows from Investment Activities |
-81,160 |
-65,959 |
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Cash
Flows from Financing Activities |
57,671 |
-26,831 |
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Cash,
Bank Deposits at the Term End |
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36,971 |
33,245 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net
Worth (S/Holders' Equity) |
349,881 |
315,922 |
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Current
Ratio (%) |
129.94 |
138.96 |
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Net
Worth Ratio (%) |
23.86 |
23.19 |
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Recurring
Profit Ratio (%) |
3.05 |
4.83 |
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Net
Profit Ratio (%) |
2.39 |
1.79 |
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Return
On Equity (%) |
8.82 |
7.38 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.67.02 |
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UK Pound |
1 |
Rs.104.31 |
|
Euro |
1 |
Rs.88.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
|
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 |
-- |
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.