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Report Date : |
19.08.2014 |
IDENTIFICATION DETAILS
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Name : |
FURUKAWA ELECTRIC CO LTD |
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Registered Office : |
Marunouchi Naka-Dori Bldg, 2-2-3 Marunouchi Chiyodaku |
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Country : |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
June 1896 |
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Com. Reg. No.: |
0100-01-008795 |
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Legal Form : |
Limited Company |
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Line of Business : |
Manufacturing of electric wires & cables |
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No. of Employees |
47,045 |
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 |
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
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.
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Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
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Results: |
31/03/2011 |
925,754 |
31,422 |
12,213 |
(%) |
215,904 |
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(Consolidated) |
31/03/2012 |
918,808 |
12,872 |
-11,123 |
-0.75 |
197,569 |
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31/03/2013 |
924,717 |
17,612 |
3,576 |
0.64 |
222,843 |
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31/03/2014 |
931,781 |
25,532 |
5,608 |
0.76 |
199,733 |
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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)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2014 |
31/03/2013 |
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INCOME STATEMENT |
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Annual Sales |
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931,781 |
924,717 |
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Cost of Sales |
790,541 |
786,825 |
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GROSS PROFIT |
141,240 |
137,891 |
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Selling & Adm Costs |
115,783 |
120,128 |
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OPERATING PROFIT |
25,456 |
17,763 |
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Non-Operating P/L |
76 |
-151 |
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RECURRING PROFIT |
25,532 |
17,612 |
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NET PROFIT |
5,608 |
3,576 |
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BALANCE SHEET |
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Cash |
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26,719 |
31,293 |
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Receivables |
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199,286 |
222,430 |
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Inventory |
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93,667 |
104,247 |
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Securities, Marketable |
20 |
17 |
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Other Current Assets |
40,317 |
34,657 |
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TOTAL CURRENT ASSETS |
360,009 |
392,644 |
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Property & Equipment |
191,069 |
280,086 |
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Intangibles |
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9,596 |
12,614 |
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Investments, Other Fixed Assets |
154,171 |
134,358 |
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TOTAL ASSETS |
714,845 |
819,702 |
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Payables |
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104,377 |
133,125 |
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Short-Term Bank Loans |
119,913 |
125,049 |
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Other Current Liabs |
69,579 |
69,694 |
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TOTAL CURRENT LIABS |
293,869 |
327,868 |
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Debentures |
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40,000 |
30,284 |
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Long-Term Bank Loans |
117,842 |
162,830 |
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Reserve for Retirement Allw |
42,525 |
52,294 |
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Other Debts |
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20,875 |
23,582 |
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TOTAL LIABILITIES |
515,111 |
596,858 |
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MINORITY INTERESTS |
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Common
stock |
69,395 |
69,395 |
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Additional
paid-in capital |
21,467 |
21,467 |
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Retained
earnings |
79,219 |
76,125 |
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Evaluation
p/l on investments/securities |
19,094 |
18,160 |
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Others |
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10,834 |
37,970 |
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Treasury
stock, at cost |
(276) |
(274) |
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TOTAL S/HOLDERS` EQUITY |
199,733 |
222,843 |
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TOTAL EQUITIES |
714,845 |
819,702 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2014 |
31/03/2013 |
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Cash
Flows from Operating Activities |
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18,912 |
54,947 |
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Cash
Flows from Investment Activities |
-40,290 |
-44,939 |
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Cash
Flows from Financing Activities |
29,917 |
-11,402 |
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Cash,
Bank Deposits at the Term End |
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25,320 |
30,476 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
199,733 |
222,843 |
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Current
Ratio (%) |
122.51 |
119.76 |
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Net
Worth Ratio (%) |
27.94 |
27.19 |
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Recurring
Profit Ratio (%) |
2.74 |
1.90 |
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Net
Profit Ratio (%) |
0.60 |
0.39 |
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Return
On Equity (%) |
2.81 |
1.60 |
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.