MIRA INFORM REPORT

 

 

Report Date :

19.08.2014 

 

IDENTIFICATION DETAILS

 

Name :

FURUKAWA ELECTRIC CO LTD

 

 

Registered Office :

Marunouchi Naka-Dori Bldg, 2-2-3 Marunouchi Chiyodaku Tokyo 100-8382

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

June 1896

 

 

Com. Reg. No.:

0100-01-008795

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing of electric wires & cables

 

 

No. of Employees

47,045

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 


COMPANY NAME AND ADDRESS

 

FURUKAWA ELECTRIC CO LTD

 

REGD NAME:    Furukawa Denki Kogyo KK

MAIN OFFICE:  Marunouchi Naka-Dori Bldg, 2-2-3 Marunouchi Chiyodaku Tokyo 100-8382

JAPAN

Tel: 03-3286-3001     Fax: 03-3286-3694-

 

URL:                 http://www.firilawa/cp/kp

E-Mail address: (thru the URL)

 

 

ACTIVITIES     

 

Mfg of electric wires & cables

 

 

BRANCHES     

 

Tokyo, China, Osaka, Nagoya, Yokohama, Fukuoka, other (tot 14)

 

 

OVERSEAS

 

Europe (12), Asia (67), North America (6), and Latin America (7)

 

 

FACTORIES

 

Chiba, Nikko, Hiratsuka, Mie, Yokohama, Osaka

 

 

OVERSEAS

 

China (16), Taiwan (3), Korea, Thailand (8), Malaysia (3), Vietnam (4),

Philippines, Indonesia (3), UK, Germany, Mexico (2), Brazil, USA (2)

 

 

CHIEF EXEC

 

MITSUYOSHI SHIBATA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 


 

SUMMARY       

 

FINANCES        FAIR                              A/SALES       Yen 931,781 M

PAYMENTSSLOW BUT CORRECT          CAPITAL        Yen 69,395 M

TREND UP                                 WORTH         Yen 199,733 M

STARTED         1896                              EMPLOYES   47,045

 

 

COMMENT      

 

MFG OF ELECTRIC WIRES & CABLES 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

925,754

31,422

12,213

(%)

215,904

(Consolidated)

31/03/2012

918,808

12,872

-11,123

-0.75

197,569

 

31/03/2013

924,717

17,612

3,576

0.64

222,843

 

31/03/2014

931,781

25,532

5,608

0.76

199,733

 

31/03/2015

850,000

23,000

7,500

-8.78

..

                        Unit: In Million Yen

Forecast figures for the 31/03/2015 fiscal term.

 

HIGHLIGHTS

 

This is one of the largest mfrs of electric wires & cables.  Advanced into rolled copper business in 1934 and grew into comprehensive nonferrous metal maker.  Largest earnings contributor changes according to progress in business diversification.  Under restructuring downsized in domestic.  From now on, the make of electric wires & cables may lay stress on its original forte and peripheral products, including optical fibers bound for overseas, industrial-use electric wires and harnesses.  The subsidiary, Furukawa-Sky Aluminum will merge with Sumitomo Light Metals in Oct/2013, and the aluminum division will separate.  Domestic production of optical fibers and leading wires are now consolidated at Mie Plant.  The firm plans to set up plants to manufacture parts relating to airbags in Brazil and India with the start of operation slated for the March/2015 term.

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar 2014 fiscal term amounted to Yen 931,781 million, a 086% up  from Yen 924,717 million in the previous term.  Optical fiber operation in South America was active.  Domestic sales of railroad-related products recovered.  Businesses of copper foils and LCD reflector plates struggled, but sales electrical parts steadily expanded.  The recurring profit was posted at Yen 25,532 million and the net profit at Yen 5,608 million, respectively, compared with Yen 17,612 million recurring profit and Yen 3,576 million net profit, respectively, a year ago. 

 

(Apr/Jun/2014 results): Sales Yen 204,263 million (down 13.8%), operating profit Yen 3,097 million (down 41.3%), recurring profit yen 3,859 million (down 43.6%), net profit Yen 90 million (down 93.2%).  (% compared with the corresponding period a year ago).

           

For the current term ending Mar 2015 the recurring profit is projected at Yen 23,000 million and the net profit at Yen 7,500 million, respectively, on an 8.8% fall in turnover, to Yen 850,000 million.  With the separation of light metal business, both sales and profit will reduce.  Domestic sales of cables will be stagnant.  Snow damage at the plant in Nikko City, Tochigi-Pref will also weigh on profit, but business relating to automobile use wire harnesses will be active.  

 

The financial situation is considered FAIR and good for ORDINARY business engagements.

 

 

REGISTRATION

           

Date Registered:      Jun 1896

Regd No.:         0100-01-008795 (Tokyo-Chiyodaku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       2,590,000,000 shares

Issued:                706,669,179 shares

Sum:                   Yen 69,395 million

 

Major shareholders (%): Master Trust Bank of Japan T (8.5), Japan Trustee Services T (5.9), Japan Trustee Services T4 (3.8), TCSB (Mizuho Bank) (3.4), Asahi Life Ins (1.9), Furukawa Co (1.8), Fuji Electric (1.5), TCSB (Furukawa Co) (1.5), TCSB (Asahi Life Ins) (1.4), Employees’ S/Holding Assn (1.0); foreign owners (14.6)

 

No. of shareholders: 60,145

 

Listed on the S/Exchange (s) of: Tokyo

 

Managements: Masao Yoshida, ch; Mitsuyoshi Shibata, pres; Tetsuya Sato, s/mgn dir; Hiroyuki Otake, s/mgn dir; Tetsuro Yasunaga, mgn dir; Nozomu Amano, mgn dir; Takamitsu Kozuka, mgn dir; Takahide Kimura, dir; Hiroyuki Ogiwara, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Furukawa Battery, Furukawa Sky, OFS, Riken Electric Wire,

Furukawa AS, other

 

 

OPERATION

           

Activities: Manufactures electric wire & cables:

 

(Sales Breakdown by divisions):

Telecommunications (16%): optical fibers & cables, semiconductor optical devices, optical components, optical fiber cable accessories & installations, metal communication cables, electronic appliance wires, network equipment, CATV system, radio products, etc;

Electronics & Automotive Systems (28%): automotive components & electric wiring, magnet wires, heat-sinks, memory disc materials, antennas, electronic component materials, battery products, etc;

Energy & Industrial Products (30%): bare wires, aluminum wires, insulated wires, power cable, power transmission cable accessories & installation, electric material products, cable conduits, fire prevention products, water-feeding pipe materials, foam products, UV tapes for semiconductor mfg, etc;

Metals others (26%): wrought copper products (plates, strips, pipes, rods & wires), functional surface products, electrodeposited copper oil, processed products for electronic parts, superconducting products, special metal materials, special metal materials, shape-memory & super-elastic alloys, aluminum sheets, extruded aluminum products, processed light metal products, etc;

Overseas sales ratio (41%)

 

Clients: [Mfrs, wholesalers] Japan Railways, NTT, Electric Powers, Government Agencies, other

No. of accounts: 800

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Itochu Corp, Mitsui & Co, Mitsubishi Corp, other

 

Payment record: Slow but correct

 

Location: Business area in Tokyo.  Office premises at the caption address are leased and maintained satisfactorily.

 

Bank References:

Mizuho Bank (Tokyo)

MUFG (H/O)

Relations: Satisfactory

 

 

FINANCES

 

 (In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/03/2014

31/03/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

931,781

924,717

 

  Cost of Sales

790,541

786,825

 

      GROSS PROFIT

141,240

137,891

 

  Selling & Adm Costs

115,783

120,128

 

      OPERATING PROFIT

25,456

17,763

 

  Non-Operating P/L

76

-151

 

      RECURRING PROFIT

25,532

17,612

 

      NET PROFIT

5,608

3,576

BALANCE SHEET

 

 

 

 

  Cash

 

26,719

31,293

 

  Receivables

 

199,286

222,430

 

  Inventory

 

93,667

104,247

 

  Securities, Marketable

20

17

 

  Other Current Assets

40,317

34,657

 

      TOTAL CURRENT ASSETS

360,009

392,644

 

  Property & Equipment

191,069

280,086

 

  Intangibles

 

9,596

12,614

 

  Investments, Other Fixed Assets

154,171

134,358

 

      TOTAL ASSETS

714,845

819,702

 

  Payables

 

104,377

133,125

 

  Short-Term Bank Loans

119,913

125,049

 

 

 

 

 

 

  Other Current Liabs

69,579

69,694

 

      TOTAL CURRENT LIABS

293,869

327,868

 

  Debentures

 

40,000

30,284

 

  Long-Term Bank Loans

117,842

162,830

 

  Reserve for Retirement Allw

42,525

52,294

 

  Other Debts

 

20,875

23,582

 

      TOTAL LIABILITIES

515,111

596,858

 

      MINORITY INTERESTS

 

 

 

Common stock

69,395

69,395

 

Additional paid-in capital

21,467

21,467

 

Retained earnings

79,219

76,125

 

Evaluation p/l on investments/securities

19,094

18,160

 

Others

 

10,834

37,970

 

Treasury stock, at cost

(276)

(274)

 

      TOTAL S/HOLDERS` EQUITY

199,733

222,843

 

      TOTAL EQUITIES

714,845

819,702

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2014

31/03/2013

 

Cash Flows from Operating Activities

 

18,912

54,947

 

Cash Flows from Investment Activities

-40,290

-44,939

 

Cash Flows from Financing Activities

29,917

-11,402

 

Cash, Bank Deposits at the Term End

 

25,320

30,476

ANALYTICAL RATIOS            Terms ending:

31/03/2014

31/03/2013

 

 

Net Worth (S/Holders' Equity)

199,733

222,843

 

 

Current Ratio (%)

122.51

119.76

 

 

Net Worth Ratio (%)

27.94

27.19

 

 

Recurring Profit Ratio (%)

2.74

1.90

 

 

Net Profit Ratio (%)

0.60

0.39

 

 

Return On Equity (%)

2.81

1.60

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.