|
Report Date : |
02.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
FURUNO ELECTRIC CO LTD |
|
|
|
|
Registered Office : |
9-52 Ashiharacho Nishinomiya City Hyogo-Pref 662-8580 |
|
|
|
|
Country : |
Japan |
|
|
|
|
Financials (as on) : |
28.02.2014 |
|
|
|
|
Date of Incorporation : |
May 1951 |
|
|
|
|
Legal Form : |
Limited Company |
|
|
|
|
Line of Business : |
Manufacturing of fish finders, navigational instruments, radars,
industrial electronics |
|
|
|
|
No. of Employees |
2,830 |
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 : |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy
|
Source
: CIA |
FURUNO ELECTRIC CO LTD
REGD NAME: Furuno
Denki KK
MAIN OFFICE: 9-52
Ashiharacho Nishinomiya City Hyogo-Pref 662-8580 JAPAN
Tel:
0798-65-2111 Fax: -798-63-1020
E-Mail address: info@furuno.co.jp
Mfg of fish finders, navigational
instruments, radars, industrial electronics
Tokyo, Hokkaido
(4), Chiba, Shizuoka, Hiroshima, other (Tot 22)
USA (3), Europe (15),
Russia, China (3), Hong Kong, Korea, Singapore
(--subsidiaries)
At the caption
address, Miki
YUKIO FURUNO, PRES
& CEO
Yen Amount: In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 75,666 M
PAYMENTSSLOW BUT
CORRECT CAPITAL Yen
7,534 M
TREND UP WORTH Yen 38,011 M
STARTED 1951 EMPLOYES 2,830
MFR OF FISH FINDERS, NAVIGATIONAL AIDS, RADARS, OTHER.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
|
Results: |
28/02/2011 |
73,724 |
1,354 |
343 |
(%) |
33,504 |
|
(Consolidated) |
29/02/2012 |
77,300 |
2,100 |
-802 |
4.85 |
31,127 |
|
28/02/2013 |
71,605 |
2,142 |
1,564 |
-7.37 |
34,697 |
|
|
28/02/2014 |
75,666 |
2,396 |
-660 |
5.67 |
38,011 |
|
|
28/02/2015 |
80,000 |
2,500 |
1,300 |
5.73 |
.. |
Unit:
In Million Yen
Forecast
(or estimated) figures for 28/02/2015 fiscal term
The subject
company is pioneer in fish finders, and general mfr of ship electronic
equipment, such as navigational instruments including radars (See OPERATION). Operates a total 25 local subsidiaries in UK,
Norway, USA, China, etc. Focusing on
land-based equipment such as car navigation systems, handheld terminals and
other electronic equipment. The company
plans to establish a sales subsidiary in Italy in Jan 2016, to strengthen sales
in Europe, an important market. The
global commercial ship market will show a sign of recovery.
The sales volume for
Feb/2014 fiscal term amounted to Yen 75,666 million, a 5.7% up from Yen 71,605
million in the previous term. Sales of ship-use
electronic equipment recovered, aided by price hike on Sept 2013. Orders for high-profitable fish detectors and
other fishing products held firm, and covered drop in demand for commercial
ship-use products. The recurring profit
was posted at Yen 2,396 million and the net losses Yen 660 million,
respectively, compared with Yen 2,142 million recurring profit and Yen 1,564
million net profit, respectively, a year ago.
For the current term ending Feb 2015 the recurring profit is projected
at Yen 2,500 million and the net profit at Yen 1,300 million, on a 5.7% rise in
turnover, to Yen 80,000 million. Sales
of fishing products will slow down in Japan, but orders for products for
commercial ships and pleasure boats will rally.
Operating profits will rise.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 1,955.6 million, on 30 days normal terms.
Date Registered: May 1951
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 120 million shares
Issued: 31,894,554 shares
Sum: Yen 7,534 million
Major
shareholders (%): Furuno Kosan (13.7), Customers’ S/Holding Assn (3.3), Dai-ichi Life
Ins (3.1), MUFG (3.1), TCSB (Mizuho Bank) (2.9), Japan Trustee Services T4
(2.3), Echo Kosan (1.7), Credit Suisse (Lux.) Behalf (1.6), Kiyokata Furuno
(1.5), Employees’ S/Holding Assn (1.3); foreign owners (10.6)
No.
of shareholders: 5,437
Listed on the S/Exchange (s) of: Tokyo
Managements: Yukio Furuno, pres;
Hiroyuki Mori, s/mgn dir; Muneyuki Koike, mgn dir; Ryozo Izawa, mgn dir; Yutaka
Wada, dir; Shinji Ishihara, dir; Kazuma Waimatsu, dir; Tatsuyuki Okamoto, dir;
Yasushi Nishimori, dir; Satoshi Ooya, dir
Nothing detrimental
is known as to the commercial morality of executives.
Related
companies: Furuno Kyushu Hambai, Furuno Kansai Hambai, Furuno Systems, other
Activities: Manufactures
ship-use navigation instruments, fish finders, wireless & communication
units (--80%), industrial electronics (15%), others (5%).
Overseas
Sales Ratio (59%)
Clients: [Mfrs,
wholesalers] Nippon Suisan, Mitsubishi Heavy Ind, Mitsui Shipbuilding &
Engineering, Maruha Nichiro Holdings, Mitsui & Co, VIA Marine, NEC Active,
Furuno USA, Furuno Systems Inc, Furuno Kansai Hambai, Furuno Kyushu Hambai,
Adachi Co, other
No. of accounts:
800
Domestic areas of
activities: Nationwide
Suppliers: [mfrs,
wholesalers] Toshiba Corp, Panasonic Industry Sales, Alps Electric, Ryoyo
Electro, Yamagata Casio, Toyo Electro Corp, other
Payment record: Slow but correct
Location: Business area in Nishinomiya City, Hyogo-Pref. Office premises at the caption address are
owned and maintained satisfactorily.
Bank References:
Mizuho Bank
(Umeda)
MUFG (Nakanoshima)
Relations:
Satisfactory
(In Million Yen)
|
FINANCES: (Consolidated
in million yen) |
||||
|
|
|
Terms Ending: |
28/02/2014 |
28/02/2013 |
|
INCOME STATEMENT |
||||
|
Annual Sales |
|
75,666 |
71,605 |
|
|
Cost of Sales |
49,436 |
48,694 |
||
|
GROSS PROFIT |
26,230 |
22,910 |
||
|
Selling & Adm Costs |
24,737 |
21,692 |
||
|
OPERATING PROFIT |
1,492 |
1,218 |
||
|
Non-Operating P/L |
904 |
924 |
||
|
RECURRING PROFIT |
2,396 |
2,142 |
||
|
|
NET PROFIT |
-660 |
1,564 |
|
|
BALANCE SHEET |
||||
|
Cash |
|
13,087 |
9,752 |
|
|
Receivables |
19,248 |
18,805 |
||
|
Inventory |
28,006 |
23,874 |
||
|
Securities, Marketable |
|
|
||
|
Other Current Assets |
1,536 |
2,425 |
||
|
TOTAL CURRENT ASSETS |
61,877 |
54,856 |
||
|
Property & Equipment |
9,767 |
9,065 |
||
|
Intangibles |
3,851 |
3,093 |
||
|
Investments, Other Fixed Assets |
4,579 |
5,658 |
||
|
TOTAL ASSETS |
80,074 |
72,672 |
||
|
Payables |
8,606 |
12,247 |
||
|
Short-Term Bank Loans |
6,953 |
4,131 |
||
|
|
|
|
||
|
Other Current Liabs |
15,330 |
9,496 |
||
|
TOTAL CURRENT LIABS |
30,889 |
25,874 |
||
|
Debentures |
|
|
||
|
Long-Term Bank Loans |
6,461 |
6,723 |
||
|
Reserve for Retirement Allw |
2,580 |
3,352 |
||
|
Other Debts |
|
2,133 |
2,025 |
|
|
TOTAL LIABILITIES |
42,063 |
37,974 |
||
|
MINORITY INTERESTS |
||||
|
Common
stock |
7,534 |
7,534 |
||
|
Additional
paid-in capital |
10,074 |
10,074 |
||
|
Retained
earnings |
19,024 |
19,952 |
||
|
Evaluation
p/l on investments/securities |
685 |
406 |
||
|
Others |
873 |
(3,090) |
||
|
Treasury
stock, at cost |
(179) |
(179) |
||
|
TOTAL S/HOLDERS` EQUITY |
38,011 |
34,697 |
||
|
|
TOTAL EQUITIES |
80,074 |
72,672 |
|
|
CONSOLIDATED CASH FLOWS |
||||
|
Terms ending: |
28/02/2014 |
28/02/2013 |
||
|
Cash
Flows from Operating Activities |
|
1,209 |
770 |
|
|
Cash
Flows from Investment Activities |
-2,793 |
-2,384 |
||
|
Cash
Flows from Financing Activities |
3,229 |
-1,802 |
||
|
|
Cash,
Bank Deposits at the Term End |
|
12,707 |
9,425 |
|
ANALYTICAL RATIOS Terms ending: |
28/02/2014 |
28/02/2013 |
||
|
Net
Worth (S/Holders' Equity) |
38,011 |
34,697 |
||
|
Current
Ratio (%) |
200.32 |
212.01 |
||
|
Net
Worth Ratio (%) |
47.47 |
47.74 |
||
|
Recurring
Profit Ratio (%) |
3.17 |
2.99 |
||
|
Net
Profit Ratio (%) |
-0.87 |
2.18 |
||
|
Return
On Equity (%) |
-1.74 |
4.51 |
||
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.13 |
|
|
1 |
Rs.102.83 |
|
Euro |
1 |
Rs.82.28 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.