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Report No. : |
347047 |
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Report Date : |
28.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ALTOS HORNOS DE MEXICO, S.A.B. DE C.V. |
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Registered Office : |
Prol. Nereo Rodríguez Barragán 1205-3A Edificio Caletto 2 Col. Tequisquiapan San Luis Potosí, S.L.P., |
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Country : |
Mexico |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
1942 |
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Legal Form : |
Sociedad Anónima Bursátil de Capital Variable |
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Line of Business : |
Manufacturing of Primary Metals |
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No. of Employees : |
19000 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Mexico |
A2 |
A2 |
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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 |
STATUTORY INFORMATION
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Order: |
Altos Hornos de MExico S.A.B. de C.V. |
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Address in the order: |
pROLONGACION jUAREZ s/n cOL lALOMA c p
25770 mONCLOVA cOAHUILA |
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Legal Name: |
ALTOS HORNOS DE MEXICO, S.A.B. DE C.V. |
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Trade Name: |
AHMSA |
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RFC: |
AHM-420706-U10 |
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Date Created: |
1942 |
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Date Incorporated: |
1942 |
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Legal Address: |
Prol. Nereo Rodríguez Barragán 1205-3A
Edificio Caletto 2 Col. Tequisquiapan San Luis Potosí, S.L.P., Mexico |
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Operative Address: |
Prol. Nereo Rodríguez Barragán 1205-3A Edificio
Caletto 2 Col. Tequisquiapan San Luis Potosí, S.L.P., Mexico |
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Telephone: |
(444) 813 34 84 |
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Fax: |
(444) 813 34 84 |
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Legal Form: |
Sociedad Anónima Bursátil de Capital
Variable |
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Email: |
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Registered in: |
Mexico |
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Website: |
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Contact: |
Engineer Luis Zamudio Miechielsen, Chief
Executive Officer |
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Staff: |
19 000 |
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Activity: |
Primary Metals Manufacturing Industry |
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BANKS |
BANAMEX |
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The company does not disclose its banking
information |
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History: |
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AHMSA was founded in Mexico by American Harold R. Pape in 1942. In the late 1970s, it was nationalized by the federal government.
In February 2000, AHMSA announced that it has reached an
agreement with the debt holders of Altos Hornos de Mexico, S.A. de C.V.
(AHMSA) to restructure AHMSA's debt. |
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Altos Hornos de México, S.A.B. de C.V. is a subsidiary of Grupo
Acerero del Norte S.A. de C.V. |
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Altos Hornos de México to Cut Output, Investments as Steel Prices
Slump
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PRINCIPAL ACTIVITY
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Altos Hornos de Mexico, S.A.B. de C.V. (AHMSA)
is a steel plant in Mexico. It has corporate offices in Monclova, Coahuila,
in the center of the Mexican state of Coahuila, 155 miles from the United
States border. In an area of nearly 3,000 acres operates two steelworks
plants. AHMSA´s operations start with the extraction of coal and iron ore and
finishes with the manufacture of high value-added steel products. Currently,
AHMSA operates at an annual production rate of 3.5 million metric tons of
liquid steel. |
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Products/Services description: |
It is a national leader in the production
and commercialization of flat steel products including Hot Rolled Coil, Wide
Plate, Cold Rolled Coil, Tinplate and Tin-Free Steel. It also produces
non-flat steel products like Heavy Shapes. The Company has its own coal mines
in Palau, located 70 miles from Monclova. Once extracted, the washed coal is
shipped by railroad to AHMSA’s coke plants. |
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It provides steel plate products for
automotive, re-rollers, railroad, and distribution and service center
markets; hot rolled products for machinery and mechanic equipment, pipe, wind
towers, propane tanks, automotive, and railroad markets; and cold rolled
products for motors, pipe, appliances, and public lighting markets. The
company also offers tin plate products for home appliances, galvanizers,
tapes and strapping, perfileros, electronics, containers and lids, and pipe
markets; tin-free steel products for containers and lids, and sealing and
bottle caps markets; and structural shape products for distributors,
construction, and mining markets. |
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Brands: |
AHMSA |
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Sales are: |
Wholesale |
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Clients: |
Automotive, re-rollers, railroad, and
distribution and service center markets |
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Suppliers: |
SIMPLEX CASTINGS LTD. India BOMBARDIERI S. P. A. Italy SIEMENS VAI METALS TECHNOLOGIES GMB Austria PRIMETALS TECHNOLOGIES AUSTRIA GMBH Austria |
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Operations area: |
National |
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The company imports from |
Europe, India |
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The company exports to |
No exports |
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The subject employs |
19 000 |
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Payments: |
Slow But Correct |
LOCATION
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Headquarters : |
Prol. Nereo Rodríguez Barragán 1205-3A
Edificio Caletto 2 Col. Tequisquiapan San Luis Potosí, S.L.P., Mexico |
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Branches: |
AV. Mariano
Otero 1249 |
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Subsidiaries: |
As of April
2014, its subsidiaries included: |
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
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Listed at the stock exchange: |
NA |
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Shareholders: |
The company is
based in Monclova, Mexico. Altos Hornos de México, S.A.B. de C.V. is a
subsidiary of: |
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Management: |
Engineer Luis
Zamudio Miechielsen, Chief Executive Officer |
FINANCIAL INFORMATION
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We attach latest
financial statements. |
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Altos Hornos de
Mexico reported earnings results for the third quarter and nine months of
2014. For the quarter, the company reported a net
loss of MXN 669 million compared to a net loss of MXN 520 million in the same
quarter of 2013. The company sold 932,943t of steel products
and 1.78Mt of thermal coal in the quarter, up 5% and 16%, respectively, from
third quarter of 2013. Total sales rose 16.4% to MXN 11.0 billion, while
Ebitda increased 13.5% to USD 43.4 million. The net loss for the first nine months of
2014 was MXN 296 million, compared to a MXN 1.50 billion net loss in the same
period last year. The company provided production guidance for the year 2015.
The company expects to produce 5Mt liquid steel in 2015, compared to 4.16Mt
in 2013, with the increase mainly due to its USD 2.30 billion Fénix expansion
project. |
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LEGAL FILINGS
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There are no
legal connected to the subject |
SUMMARY
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Altos Hornos de Mexico, S.A. de C.V. (AHMSA)
is an integrated steel plant in the country. The Company is involved in the extraction
of coal and iron ore and manufactures steel products. AHMSA operates at an annual production rate
of approximately 3.5 million metric tons of liquid steel. In the face of the negative situation of
artificially low prices due to unfair imports, AHMSA presented claims before
the appropriate authorities, against producers from various countries,
primarily from Asia and Eastern Europe, upon detecting irregularities in the
introduction into the country of products like coiled plate, hot-rolled coil,
and cold-rolled coil. The company’s latest financial figures show
negative profitability. We suggest working with low Credit line and
monitoring the subject for the following 12 months. |
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RISK INFORMATION
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The company announced that prices of the
metal have fallen 40% in five months and are now 70% lower than in 2008, due
to a global production surplus. The company will reduce production by 20%, halt
investments totaling MXN 3.9 billion and cut its workforce by 20%, a
reduction of 4,500 jobs. Additional steps may be taken if necessary, but
orders will not be affected. |
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DEBTS |
Controlled |
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PAYMENTS |
Slow But Correct |
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CASH FLOW |
Normal |
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STATUS |
Active |
INTERVIEW
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NAME |
NA |
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POSITION |
Administrative |
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COMMENTS |
The person contacted confirmed address,
managers, ownership and activity. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.95 |
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|
1 |
Rs.99.73 |
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Euro |
1 |
Rs.71.84 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
DPT |
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.