MIRA INFORM REPORT

 

 

Report Date :

07.02.2014

 

IDENTIFICATION DETAILS

 

Name :

PROGRESS RAIL SERVICES CORPORATION

 

 

Registered Office :

1600 Progress Drive, Albertville, AL 35950

 

 

Country :

United States of America

 

 

Date of Incorporation :

22.12.1995

 

 

Legal Form :

Corporation – Profit

 

 

Line of Business :

Supplier of railroad and transit system products and services to the rail industry in North America and internationally.

 

 

No of Employees :

5,000

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Exists

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

United States of America

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

UNITED STATES OF AMERICA - ECONOMIC OVERVIEW

 

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops below 6.5% or inflation rises above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and reduce them further as conditions warranted; the Fed, however, would keep short-term rates near zero so long as unemployment and inflation had not crossed the previously stated thresholds. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

 

Source : CIA

 


 

COMPANY NAME & ADDRESS

 

Company name: PROGRESS RAIL SERVICES CORPORATION

 

Address:            1600 Progress Drive, Albertville, AL 35950 - USA

 

Telephone:          +1 256-593-1260

 

Fax:                   +1 256-593-1249

 

Website:              www.progressrail.com

 

 

Corporate ID#

 

176-376

 

 

State

 

Alabama

 

 

Judicial form

 

Corporation – Profit  

 

 

Date incorporated

 

12-22-1995

 

 

Stock Value

 

USD 1,000=

 

 

Name of manager

 

William AINSWORTH

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Progress Rail Services Corporation supplies railroad and transit system products and services to the rail industry in North America and internationally.

The company offers engineering and track products, such as rail and other track materials, relay rails, track work products, railroad maintenance-of-way (MOW) equipment, traffic control systems and crossing warning devices, relays/used materials, mobile and plant welders, and vegetation control equipment; and locomotive and railcar products, including transit and freight locomotives, genset and repowered locomotives, used locomotives, wheels/axles/bearings, combos/traction motors, components, and aftermarket parts, as well as new and used railcars, and freight/tank car components.

It also distributes reconditioned flat cars and ore wagons, and rail engine products; and operates a mainline track in the United States.

 

In addition, the company offers rail welding and take up, relay rail, mobile crews, and signal design and installation services, as well as MOW equipment sales, service, and leasing; locomotive and railcar repair, rebuilding, and dismantling services; wreck repair, ramps and rip tracks, parts refurbishing,

automobile scrapping, and metals brokerage services; automobile scrapping, industrial/commercial, scrap brokerage, derailed equipment clean up and removal, and non-ferrous recycling services; and oil and coolant analysis services. It serves class one, short line, and transit railroad companies; and utility companies, railroad contractors, and private car owners.

The company was founded in 1982 and is headquartered in Albertville, Alabama with sales offices in Albertville, Alabama; and Woodridge, Illinois.

It has facilities in the United States, Canada, Mexico, Brazil, Italy, Germany, and the United Kingdom.

The Company is also using the registered business name LINCOLN INDUSTRIES.

As of June 19, 2006, Progress Rail Services Corporation operates as a subsidiary of Caterpillar Inc.

 

 

Office of the Foreign Assets Control (OFAC):

 

The company is not listed on the OFAC list.

The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

 

 

Suppliers include:

 

Bhilai Engineering Corporation Ltd

Hathkhoj, Bhilai, Chhattisgarh 490024, India

 

Nipha Enterprises Ltd

48, Ganga Jamuna, 28/1 Shakespeare Sarani, Kolkata 700 017, India

 

 

EIN

 

59-2740308

 

Staff

 

5,000

 

 

Operations & branches

 

At the headquarters, we find a large factory, warehouse and office, owned.

 

The Company maintains several branches in the U.S. including the one located:

 

8701 Progress Drive, Taylor Mill, KY 41015

Ph: + 1 859-291-5466

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

CATERPILLAR INC.

100 North East Adams Street

Peoria, IL 61629

United States

 

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.

The Company is listed with the NYSE under symbol CAT.

 

 

Management:

 

William P. AINSWORTH founded and has been President and Chief Executive Officer of Progress Rail Services Corporation since 1993.

He also serves as the Chief Executive Officer and President of Electro-Motive Diesel, Inc. He has been Vice President of Caterpillar Inc. since December 12, 2006. He joined Caterpillar in 2006. He has several years of experience in the recyclable metal brokerage industry. Mr. Ainsworth founded Steel Processing Services, Inc. and served as its President and Chief Executive Officer.

He began his professional career with the Atlanta office of Luria Brothers, a national scrap metal brokerage firm. In 1979, he returned to his hometown of Birmingham, Ala joining Erman Howell, a national scrap metal brokerage firm, as a regional trader. In 1981, he opened the Birmingham office of Amex Steel, a regional scrap metal brokerage firm based in Corpus Christi, Texas.

As Vice President - Trading, he was responsible for all trading throughout the U. S., as well as acquiring material for export to Mexico.

He serves as a Director of Progress Rail Services Corporation.

Mr. Ainsworth graduated from Auburn University in 1978 with a B.S. degree in Marketing.

 

Bernard GRANEY is Vice President, Director and CFO

J. DUANE CANTRELL is Vice President and Director

 

 

Subsidiaries And partnership

 

 

FCM Rail Limited

 

Fenton, MI

 

 

Electro-Motive Diesel, Inc.

 

MC Cook, IL

 

 

FINANCIALS

 

In United States, privately held corporations are not required to publish any financials.

 

 

On a direct call, a financial assistant controlled the present report and gave estimate revenue for year 2013 in the range of USD 300,000,000=

 

He confirmed that all financials are consolidated into the parent company which reported the following:

 

 

Currency in
Millions of US Dollars

As of:

Dec 31
2010

Dec 31
2011

Dec 31
2012

Dec 31
2013

TOTAL REVENUES

42,588.0

60,138.0

65,875.0

55,656.0

NET INCOME

2,700.0

4,928.0

5,681.0

3,789.0

 

 

Banks:  JPMorgan Chase Bank

                       

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there are several legal filing pending with various Courts involving the Company as plaintiff or defendant.

 

 

Secured debts summary (UCC):  

 

            File number                       Secured Party

 

07-0243541

DELL FINANCIAL SERVICES L.L.C.

10-0108820

AIR LIQUIDE INDUSTRIAL U.S. LP

10-0205745

NEXAIR LLC

10-7009017

THE MCPHERSON COMPANIES, INC.

10-7009189

THE MCPHERSON COMPANIES, INC.

10-7017955

HOLT CAT

10-7118588

THE MCPHERSON COMPANIES, INC.

10-7118604

THE MCPHERSON COMPANIES, INC.

11-0170372

AIR LIQUIDE INDUSTRIAL U.S. LP

12-0034902

TIMEPAYMENT CORPORATION

12-7039087

JPMORGAN CHASE BANK, N.A.

13-7312573

U.S. BANK EQUIPMENT FINANCE, A DIVISION OF U.S. BANK

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:      December 2013

High credit:          USD 50,000

Now owing:                    0

Past due:                      0

Last purchase:      November 2013

Line of business: Office supply

Paying status:      12 days beyond terms

 

Date reported:      December 2013

High credit:          USD 6,000,000

Now owing:                    0

Past due:                      0

Last purchase:     November 2013

Line of business: Payroll

Paying status:      As agreed

 

Date reported:       December 2013

High credit:           USD 5,000

Now owing:                    0

Past due:                      0

Last purchase:      November 2013

Line of business: Telecommunications

Paying status:      8 days beyond terms

 

 

Domestic credit history:

 

Domestic credit history appears as follow:

 

Monthly Payment Trends - Recent Activity

 

Date

Balance

Current

Up to 30 DBT

31-60 DBT

61-90 DBT

>90 DBT

08/13

$1,361,300

60%

22%

15%

1%

2%

09/13

$1,302,300

56%

23%

17%

1%

3%

10/13

$1,423,400

66%

20%

10%

1%

3%

11/13

$1,284,300

69%

17%

11%

1%

2%

12/13

$1,312,500

58%

28%

12%

1%

1%

01/14

$1,204,000

65%

20%

13%

1%

1%

 

 

National Credit Bureaus gave a medium credit rating.

 

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 12 days beyond terms.

 

 

International credit history:

 

Payments of imports are currently made with an average of 2 to 5 days beyond terms.

 

 

Other comments:

 

We noted a slowdown in business in 2013.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on 10-17-2013.

 

The risk is medium.

 

 

Our opinion:

 

A business connection may be conducted but we suggest you to check regularly the way of payments.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 62.50

UK Pound

1

Rs. 101.91

Euro

1

Rs. 84.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT

 

 

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.