MIRA INFORM REPORT
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Report Date : |
21.10.2014 |
IDENTIFICATION DETAILS
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Name : |
DMG MORI SEIKI CO LTD |
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Registered Office : |
2-35-16 Meieki Nakamuraku Nagoya 450-0002 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2014 |
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Date of Incorporation : |
Oct., 1948 |
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Com. Reg. No.: |
1800-01-054102 (Nagoya-Nakamuraku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Machine Tools. |
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No. of Employees : |
4,159 |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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Japan |
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 |
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.
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Source
: CIA |
Company
Name and Address
DMG MORI SEIKI CO LTD
REGD NAME: KK
Mori Seiki
MAIN
OFFICE: 2-35-16 Meieki Nakamuraku Nagoya
450-0002 JAPAN
Tel:
052-587-1811 Fax: 052-587-1818
*.. The is
its Nara Factory -
URL: http://www.dmgmoriseiki.co.jp
E-Mail address: (thru
the URL)
ACTIVITIES
Mfg of
machine tools
BRANCHES
Tokyo,
Mie, Chiba
OVERSEAS
USA,
China, Europe, Asia, other
FACTORIES
Nara
(2); USA, Germany (4), Poland, Italy (2), China, Russia
TECHNICAL
CENTERS
Europe
(30), North America (17), Asia/Oceania (22)
CHIEF
EXEC
MASAHIKO
MORI, PRES
Yen
Amount: In million Yen, unless
otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 160,728 M
PAYMENTS REGULAR CAPITAL Yen 51,115 M
TREND UP WORTH Yen 155,501 M
STARTED 1948 EMPLOYES 4,159
COMMENT
MFR OF MACHINE TOOLS
FINANCIAL SITUATION COSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
Unit: In Million Yen
Forecast figures for the 31/03/2015 fiscal term.
HIGHLIGHTS
This
is the top-class mfr of NC lathes and MC’s.
Advanced into machine tools in 1958, achieving high growth following
marketing of NC lathes in 1968. Overseas
sales ratio high backed by global network for marketing and maintenance
services. Has capital and business
alliance with Gildmeister of Germany.
The company started operation at its plant in Tianjin, China, which
produces horizontal machining centers, on Oct 2013, and start casting with an
eye to exports. As it will complete
integration of sales network with DMG of Germany in Mar 2015 term, the company
intends to strengthen marketing to automakers. .
FINANCIAL
INFORMATION
The sales volume for Mar/2014 fiscal term amounted to Yen
160,728 million, an 8.4% up from Yen 148,559 million in the previous term. Orders for mainstay NC lathes and machining
centers increased I the second half in Japan and the US, led by strong demand
from automakers. Sales bottomed up in
Europe. The recurring profit was posted
at Yen 11,245 million and the net profit at Yen 9,442 million, respectively,
compared with Yen 5,005 million recurring profit and Yen 5,170 million net
profit, respectively, a year ago.
(Apr/Jun/2014 results): Sales Yen 37,177 million (up 5.4%),
operating profit Yen 968 million (up 60.1%), recurring profit Yen 812 million
(down 2.7%), net profit Yen 821 million (down 39.3%). (% compared with the corresponding period a
year ago).
For the current term ending Mar 2015 the recurring profit is
projected at Yen 15,000 million and the net profit at Yen 10,500 million, on a
5.8% rise in turnover, to Yen 170,000 million.
Sales will be at a high level in Japan and the US, and will be on
recovery trend in China. Sales of NC
lathes and machining centers are projected to remain buoyant, led by strong
demand for high-profitable models mainly in Japan and the US. Sales will on a recovery trend in Europe,
contributed from increasing orders for products for the aircraft industry.
The financial situation is considered FAIR and good for
ORDINARY business engagements.
REGISTRATION
Date Registered: Oct 1948
Regd No.: 1800-01-054102 (Nagoya-Nakamuraku)
Legal Status:
Limited Company (Kabushiki Kaisha
Authorized: 200 million shares
Issued:
132,943,683 shares
Sum: Yen 51,115
million
Major shareholders (%): Company’s Treasury Stock
(9.6), Master Trust Bank of Japan T (3.9), RBC Investor SB DUB Non Resi TR
(3.3), Japan Trustee Services T (3.1), Masahiko Mori (2.6), Bank of New York
Jasdec Treaty (2.2), UBS (London) IPB Segregated Ci. (2.0), Chieko Mori (1.7),
Chase Manhattan GTS Escrow (1.6), State Street Bank & Trust 505017 (1.6);
foreign owners (42.3)
No. of shareholders: 35,684
Listed on the S/Exchange (s) of:
Tokyo
Managements: Masahiko Mori, pres; Tatsuo Kondo, v
pres; Hiroaki Tamai, v pres; Naoshi Takayama, s/mgn dir; Kenji Oishi, dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: DMG
Mori Seiki USA, Magnescale Co, other.
OPERATION
Activities: Manufactures machine tools: machining
centers, NC lathes & other products; Japan (33%), US (34%), Europe (20%),
China & Asia (13%)
Overseas Sales Ratio (67%)
Clients: [Mfrs, wholesalers] DMG Mori Seiki
USA, Mori Seiki Europe, DMG Mori Seiki Sales & Services, DMG Mori Seiki
Trading, other
No. of
accounts: 700
Domestic
areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] DMG Mori Seiki
Trading, Mitsubishi Electric, Fanuc Corp, DMG Mori Seiki USA, other
Payment record:
Regular
Location:
Business area in Nagoya. Office premises
at the caption address are owned and maintained satisfactorily.
Bank References:
SMBC (Nara)
MUFG (Nara)
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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160,728 |
148,559 |
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Cost of Sales |
107,469 |
104,393 |
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GROSS PROFIT |
53,259 |
44,165 |
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Selling & Adm Costs |
43,902 |
40,031 |
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OPERATING PROFIT |
9,357 |
4,134 |
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Non-Operating P/L |
1,888 |
871 |
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RECURRING PROFIT |
11,245 |
5,005 |
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NET PROFIT |
9,442 |
5,170 |
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BALANCE SHEET |
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Cash |
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18,935 |
6,287 |
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Receivables |
32,989 |
24,824 |
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Inventory |
40,768 |
31,939 |
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Securities, Marketable |
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Other Current Assets |
6,661 |
11,689 |
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TOTAL CURRENT ASSETS |
99,353 |
74,739 |
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Property & Equipment |
69,009 |
62,788 |
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Intangibles |
6,112 |
5,912 |
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Investments, Other Fixed Assets |
67,196 |
43,214 |
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TOTAL ASSETS |
241,670 |
186,653 |
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Payables |
11,937 |
9,077 |
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Short-Term Bank Loans |
90 |
23,929 |
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Other Current Liabs |
29,427 |
11,247 |
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TOTAL CURRENT LIABS |
41,454 |
44,253 |
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Debentures |
35,000 |
30,000 |
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Long-Term Bank Loans |
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Reserve for Retirement Allw |
379 |
222 |
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Other Debts |
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9,336 |
7,697 |
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TOTAL LIABILITIES |
86,169 |
82,172 |
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MINORITY INTERESTS |
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Common
stock |
51,115 |
41,132 |
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Additional
paid-in capital |
64,153 |
53,863 |
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Retained
earnings |
25,501 |
18,270 |
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Evaluation
p/l on investments/securities |
4,003 |
2,616 |
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Others |
14,338 |
343 |
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Treasury
stock, at cost |
(3,609) |
(11,743) |
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TOTAL S/HOLDERS` EQUITY |
155,501 |
104,481 |
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TOTAL EQUITIES |
241,670 |
186,653 |
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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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5,906 |
21,421 |
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Cash
Flows from Investment Activities |
-17,527 |
-10,089 |
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Cash Flows
from Financing Activities |
23,914 |
-10,085 |
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Cash,
Bank Deposits at the Term End |
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18,916 |
6,268 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2014 |
31/03/2013 |
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Net
Worth (S/Holders' Equity) |
155,501 |
104,481 |
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Current
Ratio (%) |
239.67 |
168.89 |
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Net
Worth Ratio (%) |
64.34 |
55.98 |
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Recurring
Profit Ratio (%) |
7.00 |
3.37 |
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Net
Profit Ratio (%) |
5.87 |
3.48 |
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Return
On Equity (%) |
6.07 |
4.95 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.48 |
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|
1 |
Rs.98.24 |
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Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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.