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Report Date : |
15.03.2014 |
IDENTIFICATION DETAILS
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Name : |
TEMBEC INC. |
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Registered Office : |
800 Bld Rene Levesque, Ste 1050, Montreal, Quebec H3B 1X9 |
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Country : |
Canada |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
1972 |
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Legal Form : |
Public Company |
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Line of Business : |
Subject is an integrated forest products company, produces and sells forest,
pulp, and paper products worldwide. |
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No. of Employees : |
6,000 (for the group) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Canada |
A1 |
A1 |
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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 |
CANADA - ECONOMIC OVERVIEW
As a high-tech industrial society
in the trillion-dollar class, Canada resembles the US in its market-oriented
economic system, pattern of production, and high living standards. Since World
War II, the impressive growth of the manufacturing, mining, and service sectors
has transformed the nation from a largely rural economy into one primarily
industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the
1994 North American Free Trade Agreement (NAFTA) (which includes Mexico)
touched off a dramatic increase in trade and economic integration with the US,
its principal trading partner. Canada enjoys a substantial trade surplus with
the US, which absorbs about three-fourths of Canadian exports each year. Canada
is the US's largest foreign supplier of energy, including oil, gas, uranium,
and electric power. Given its abundant natural resources, highly skilled labor
force, and modern capital plant, Canada enjoyed solid economic growth from 1993
through 2007. Buffeted by the global economic crisis, the economy dropped into
a sharp recession in the final months of 2008, and Ottawa posted its first
fiscal deficit in 2009 after 12 years of surplus. Canada's major banks,
however, emerged from the financial crisis of 2008-09 among the strongest in
the world, owing to the financial sector's tradition of conservative lending
practices and strong capitalization. Canada achieved marginal growth in 2010-13
and plans to balance the budget by 2015. In addition, the country's petroleum
sector is rapidly expanding, because Alberta's oil sands significantly boosted
Canada's proven oil reserves. Canada now ranks third in the world in proved oil
reserves behind Saudi Arabia and Venezuela.
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Source
: CIA |
TEMBEC INC.
Address: 800 Bld Rene Levesque, Ste 1050, Montreal,
Quebec H3B 1X9, Canada
Telephone: +1
517-871-0137
Fax: +1 517-397-0896
Website: www.tembec.com
Corporate ID#: 4461851
State: Federal
Judicial form: Public Company (TMX = TMB)
Date incorporated: 01-16-2008
Date founded: 1972
Stock: 100,000,000
shares issued and outstanding.
Value: No
par value
Name of manager: James
M. LOPEZ
Business:
Holding Company.
Tembec Inc., an integrated forest products company, produces and sells
forest, pulp, and paper products worldwide.
It operates through four segments: Forest Products, Specialty Cellulose
Pulp, Paper Pulp, and Paper. The Forest Products segment produces and sells a
range of forest products comprising spruce, pine, and fir softwood lumber
products for residential and commercial construction markets, as well as the
industrial markets, which includes manufacturers of trusses, siding, pallets,
and other products; hardwood lumber; and sawmills and forest wood chips.
The Specialty Cellulose Pulp segment manufactures and markets specialty
cellulose, including the transformation and sale of resins and pulp by-products
for use in cosmetic, pharmaceutical, personal care, food, coating, electronic,
and energy applications.
The Paper Pulp segment offers hardwood high-yield pulps for coated and
uncoated paper, paperboard and linerboard, and tissue and toweling
applications; and chemical pulps.
The Paper segment produces and sells coated bleached board for use in
commercial printing, publishing, and packaging applications; and newsprint for
publishers of daily newspapers and commercial printers, as well as controlled
bulk paper for mass-market paperback book publishers and commercial printers.
The company also provides chemical products consisting of resins,
lignosulfonates, and ethanol.
Tembec Inc. was founded in 1972 and is headquartered in Montreal,
Canada.
Staff: 6,000 (for the group)
Operations & branches:
At the headquarters, we
find the corporate office, on lease.
The Company maintains a
branch located:
10 Chemin Gatineau
Temiscaming, Quebec J0Z 3R0 – Canada
Shareholders:
The Company is listed with
the Toronto Stock Exchange under symbol TMB.
Management:
James M. LOPEZ has been the Chief Executive Officer and President of
Tembec Inc. since January 26, 2006 and January 27, 2006 respectively and of its
subsidiary Tembec Industries, Inc.
Mr. Lopez served as an Executive Vice President and President of Forest
Products Group of Tembec Inc. from August 2003 to January 26, 2006 and of its
subsidiary Tembec Industries, Inc. Mr. Lopez served as an Executive Vice
President and Resources Management of Tembec Inc. and Tembec Industries, Inc.
from 1999 to August 2003. Mr. Lopez served as Chairman of the Ontario Forest
Industry Association (OFIA), of the Forest Engineering Research Institute of
Canada (FERIC), and of WoodWorks Canada Corp. He serves as Vice Chairman of the
Forintek Canada Corp. He has been Director of Tembec Inc. since February 29,
2008 and has been Director of Tembec Industries, Inc. since January 2006. Mr.
Lopez joined Tembec in 1989 and has held a number of operating and staff roles
of increasing responsibility, including the management of a number of its
business units. He also served as Director of Tembec Inc. from January 26, 2006
to February 29, 2008.
He holds Bachelor Degree of Economics from California University of
Pennsylvania.
Michel DUMAS is the CFO.
Directors include James M. LOPEZ, Norman M. BETTS, Lorie WAISBERG,
Francis Matthew SORICCO, David John STEUART, James Norris CHAPMAN,
James V. CONTINENZA, Michel DUMAS, Jacques LEDUC.
As far as we know, they are involved in other corporations, including:
- INDUSTRIES TEMBEC INC
- TEMBEC COMPANIE DE CONSTRUCTION INC
- PLACEMENTS TEMBEC
…
On attachment:
- 10K 2013 (fiscal year
ending September 2012)
- 1st 10Q 2014
On January 30, 2014, Tembec Inc. reported unaudited consolidated
earnings results for the first quarter ended December 28, 2013.
For the quarter, the company reported sales of CAD 354 million compared
to CAD 376 million a year ago.
Operating earnings were CAD 19 million compared to CAD 7 million a year
ago. Loss before income taxes was CAD 2 million compared to CAD 9 million a
year ago. Net earnings was CAD 2 million or CAD 0.02 basic and diluted per
share compared to net loss of CAD 15 million or CAD 0.15 basic and diluted per
share a year ago. Cash flows from operating activities were CAD 1 million
compared to cash flows used in operating activities of CAD 1 million a year
ago. Disbursements for property, plant and equipment were CAD 42 million
compared to CAD 40 million a year ago. Operating earnings before depreciation,
amortization and other items (adjusted EBITDA) was CAD 13 million for the
three-month period ended December 28, 2013, as compared to adjusted EBITDA of
CAD 19 million a year ago and adjusted EBITDA of CAD 24 million in the prior
quarter. The forecasted impact on EBITDA is going to be around CAD 40 million
for fiscal 2015.
Banks: Banque de Montreal
Legal filings
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary: Several
Domestic credit history:
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 10+ days beyond terms.
Other comments:
The Company reported losses
since several years.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
Last report was filed on
February 11, 2014.
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
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.52 |
|
|
1 |
Rs.102.22 |
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Euro |
1 |
Rs.85.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.