MIRA INFORM REPORT
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Report No. : |
326112 |
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Report Date : |
08.06.2015 |
IDENTIFICATION DETAILS
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Name : |
MTS SYSTEMS CORPORATION |
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Registered Office : |
14000 Technology Drive, Eden Prairie, MN 55344 |
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Country : |
United
States |
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Financials (as on) : |
28.03.2015 (Condensed Consolidated) (Unaudited) |
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Date of Incorporation : |
12.09.1996 |
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Legal Form : |
Public Company |
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Line of Business : |
Supplies test systems and industrial position sensors in the Americas,
Europe, and Asia. |
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No. of Employees : |
2,180 (as of 11-26-2014) |
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 : |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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United States |
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 |
UNITED STATES - ECONOMIC OVERVIEW
The US has the most technologically powerful economy in the world, with a per capita GDP of $54,800. In 2014, however, US GDP ran second to China’s, when compared on a Purchasing Power Parity basis; the US lost the top spot, where it had stood for more than a century. In the US, 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 has been a driving factor in 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. But the globalization of trade, and especially the rise of low-wage producers, has put additional downward pressure on wages and upward pressure on the returns to capital. 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 2014, the direct costs of the wars totaled more than $1.5 trillion, 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 (Fed) 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 dropped below 6.5% or inflation rose 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 ended the purchases during the summer of 2014. 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.
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Source
: CIA |
Company
name and address
Company name: MTS SYSTEMS CORPORATION
Address: 14000 Technology Drive, Eden
Prairie, MN 55344 - USA
Telephone: +1
952-937-4000
Fax: +1 952-937-4515
Website: www.mts.com
Corporate ID#: 1K-817
State: Minnesota
Judicial form: Public Company (Nasdaq = MTSC)
Date incorporated: September
12, 1966
Stock: 64,000,000
shares
14,903,783 shares issued and outstanding, as
of 03-28-2015
Value: USD
0.25= par value
Name of manager: Jeffrey
A. GRAVES
ACTIVITIES & OPERATIONS
Business:
MTS Systems Corporation supplies test systems and industrial position sensors
in the Americas, Europe, and Asia.
The company’s Test segment provides testing solutions, including road
simulators for durability simulation; tire performance and rolling resistance
measurement systems; moving road-plane systems and balances use for
aerodynamics measurements in wind tunnels; systems for the physical
characterization of materials, such as ceramics, composites, and steel; and
systems to test durability and performance of implants, prostheses, and other
medical and dental materials and devices. This segment also offers products,
systems, and software to perform static and fatigue testing of aircraft and
space vehicles; systems for structural engineering, including high force static
and dynamic testing; and seismic simulation tables to test the designs of
structures and set building codes.
In addition, it provides various accessories and spare parts, as well as
installation, calibration, maintenance, training, and consulting services. This
segment serves automobile, truck, motorcycle, motorsports vehicle, construction
equipment, agricultural equipment, rail, and off-road vehicle manufacturers and
their suppliers, as well as power generation, aerospace, bio-medical, wind
energy, structural engineering, petroleum, and other industries.
The company’s Sensors segment manufactures products utilizing
magnetostriction technology for manufacturers of plastic injection molding
machines, steel mills, fluid power, oil and gas, medical, wood product
processing equipment, mobile equipment, and energy industries. It also offers
products to measure fluid displacement for customers in the process industries.
The company sells its products through direct sales organization, and
independent representatives and distributors, as well as through the Internet
and catalogs.
MTS Systems Corporation was founded in 1966 and is headquartered in Eden
Prairie, Minnesota.
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.
EIN: 41-0908057
Staff: 2,180 (as of 11-26-2014)
Operations & branches:
At the headquarters, we
find an extra large factory, warehouse and office, on 420,000 sq. ft. owned.
The Company maintains
several branches in the U.S.
SHAREHOLDERS
& MANAGERS
Shareholders:
The Company is listed with the Nasdaq under symbol MTSC.
As of 03-31-2015, 94% of the stock was held by institutional and mutual
fund owners, including:
|
Mairs & Power Growth Fund Inc |
7.19% |
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Vanguard Group, Inc. (The) |
6.99% |
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BlackRock Fund Advisors |
5.92% |
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Ariel Fund |
5.32% |
Management:
Jeffrey A. GRAVES is the President, Director and CEO.
Dr. Jeffrey A. Graves, PhD, has been the Chief Executive Officer of MTS
Systems Corp. since May 7, 2012. Dr. Graves served as the President of C&D
Technologies Inc., since July 5, 2005. Dr. Graves has 25 years of experience in
power systems and standby power storage, electronic components and
technologically advanced aircraft components. Over the course of his career,
his functional responsibilities have ranged from research and development to
design engineering to global operations and business development.
For nearly a decade, he has served in Chief Executive Officer position
at public companies. He served as Chief Executive Officer of C&D
Technologies Inc., since July 5, 2005. Dr. Graves served as the Chief Executive
Officer and President of KEMET Corporation (Formerly, KEMET Electronics
Corporation) from October 2002 to January 25, 2005. He served as the Chief
Operating Officer of Kemet Corporation from 2002 to 2003. Dr. Graves served as
Vice President of Engineering since May 2002 and served as Vice President of
Technology since he joined KEMET Corporation, from July 2001 to 2002. He served
as a Manager of Power Systems Division of General Electric Company from 1996 to
2001.
He served as Manager of Corporate Research and Development Center of
General Electric Company from 1994 to 1996. While at GE, Dr. Graves led global
teams spanning the United States, Eastern Europe, India and Japan, to deliver
advanced power generation products and services to customers worldwide.
Prior to working for GE, Dr. Graves served various positions of
increasing responsibility at Rockwell International Corporation and Howmet
Corporation. He has been a Director of MTS Systems Corp. since May 7, 2012.
He has been Director of C&D Technologies, Inc. since December 23,
2010.
He has been a Director of Hexcel Corp. since July 13, 2007.
He has been an Independent Director of Teleflex Inc., since 2007. He
served as Director of C&D Technologies Inc. from July 5, 2005 to December
23, 2010.
Dr. Graves served as a Director of Technitrol Inc. (AKA Pulse
Electronics Corporation), from January 1, 2006 to April 2007. Dr. Graves served
as a Director of KEMET Corporation from March 2003 to January 25, 2005.
Dr. Graves completed the first Master Black Belts certified in GE's Six Sigma
Program.
Dr. Graves has a Ph.D. and M.S. in Metallurgical Engineering from the
University of Wisconsin and a B.S. in Metallurgical Engineering from Purdue
University.
Jeffrey OLDENKAMP is Vice President and CFO.
The Board of Directors includes:
- David J. ANDERSON, Chairman
- Jeffrey A. GRAVES
- Barb J. SAMARDZICH
- Gail P. STEINEL
- Emily Maddox LIGETT
- Jean-Lou CHAMEAU
- David JOHNSON
- Chung Hun YU
Subsidiaries And
partnership:
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MTS Japan Ltd. |
Japan |
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MTS Sensor Technology Corp |
Japan |
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MTS Korea, Inc. |
South Korea |
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MTS Systems (China) Co., Ltd. |
China (PRC) |
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MTS Systems GmbH |
Germany |
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MTS Systems Norden AB |
Sweden |
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MTS Systems Ltd. |
United Kingdom |
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MTS Systems Srl |
Italy |
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MTS Holdings France, SARL |
France |
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MTS Systems SAS |
France |
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MTS Sensor Technologie GmbH and Co. KG |
Germany |
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MTS Automotive Sensors GmbH |
Germany |
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MTS Sensor Technologie und Verwaltungs-GmbH |
Germany |
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MTS Systems (Hong Kong), Inc. |
Minnesota |
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MTS Systems Switzerland GmbH |
Switzerland |
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MTS Testing Systems (Canada) Ltd. |
Ontario |
FINANCIALS
On attachment:
- 10K 2013-2014 (fiscal
year ending September 2014)
- 2nd 10Q 2015
On May 4, 2015, MTS Systems Corporation reported unaudited consolidated
earnings results for the second quarter and half year ended March 29, 2015.
For the quarter, the company reported revenue of $143,955,000 against $137,343,000
a year ago. The increase in revenue was driven by 7% growth in Test as a result
of strong custom and engineer-to-order revenue converted from the high opening
backlog, as well as improved factory throughput driven by productivity
improvements. Income from operations was $17,755,000 against $12,354,000 a year
ago. Income before income taxes was $16,875,000 against $11,938,000 a year ago.
Net income was $11,706,000 or $0.77 per diluted share against $7,779,000 or
$0.50 per diluted share a year ago. During the second quarter, operating
activities generated cash of $22.7 million and the company used $4.7 million to
invest in capital expenditures.
For the half year, the company reported revenue of $286,539,000 against
$275,753,000 a year ago. Income from operations was $33,566,000 against
$26,501,000 a year ago. Income before income taxes was $31,760,000 against
$25,633,000 a year ago. Net income was $25,492,000 or $1.68 per diluted share
against $16,924,000 or $1.09 per diluted share a year ago.
The company is adjusting fiscal year 2015 guidance for revenue down to a
range of $565 million to $580 million and earnings per share to a range of
$3.00 to $3.20. The negative impact from the stronger dollar directly accounts
for approximately 70% of the reduction in revenue and 40% of the reduction in
earnings per share. The remaining decrease is driven by the continued higher
mix of custom orders and pricing pressures from the stronger dollar, offset in
part by the productivity and efficiency initiatives combined with a strong cost
focus across the business. The majority of the decrease in revenue guidance was
driven by the strengthening of the U.S. dollar relative to the euro and the
yen. In future quarters, the company expects the tax rate to remain in the low
to mid-30% range.
On June 2, 2015, MTS Systems Corporation announced that its board of
directors has declared a quarterly dividend of $0.30 per share.
The dividend is payable on June 29, 2015 to shareholders of record as of
the close of business on June 15, 2015.
Banks: U.S. Bank
HSBC Bank USA
Wells Fargo Bank
JPMorgan Chase Bank
LEGAL
FILINGS
Legal filings & complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary (UCC):
None
Haut du formulaire
COMPANY CREDIT HISTORY
Trade references:
Date reported: May 2015
High credit: USD 15,000
Now owing: 0
Past due: 0
Last purchase: April 2015
Line of business: Office supply
Paying status: 7 days beyond terms
Date reported: May 2015
High credit: USD 3,300,000+
Now owing: 0
Past due: 0
Last purchase: April 2015
Line of business: Payroll
Paying status: As agreed
Date reported: May 2015
High credit: USD 2,200
Now owing: 0
Past due: 0
Last purchase: April 2015
Line of business: Telecommunications
Paying status: 5 days beyond terms
Domestic credit history:
Domestic credit history
appears as follow:
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Monthly Payment Trends - Recent Activity |
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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 5 to 8 days beyond terms.
International
credit history:
Payments of imports are currently made on terms.
Other comments:
The Company is in good standing.
This means that all local
and federal taxes were paid on due date.
The risk remains low.
Our opinion:
A business connection may
be conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.90 |
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|
1 |
Rs.97.98 |
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Euro |
1 |
Rs.71.82 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SHG |
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.