Académique Documents
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XLS
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
Selected Income Statement Information
Net Sales U.S. $1,019.0 $1,160.3 $1,178.8 $1,145.7 $1,113.6 $1,058.3 $1,091.8 $1,048.3 $1,009.3 $964.3
International 1,217.9 1,152.2 1,066.1 1,006.6 957.0 913.4 812.9 814.6 754.6 664.9
Total 2,236.9 2,312.5 2,244.9 2,152.3 2,070.6 1,971.7 1,904.7 1,862.9 1,763.9 1,629.2
Operating Expenses 2,147.7 2,112.2 2,059.5 1,938.5 1,824.0 1,687.4 1,600.5 1,689.1 1,610.1 1,493.5
Profit from Opns. Before Restructuring Exp. 89.2 200.3 185.4 213.8 246.6 284.3 304.2 173.8 153.8 135.7
Restructuring Expense 247.0 0.0 44.0 0.0 0.0 0.0 40.5 151.9 0.0 0.0
Interest Expense 52.1 46.6 47.9 58.5 58.4 81.3 86.2 29.0 15.0 18.6
Net Earnings -140.2 117.2 -51.3 99.0 683.7 151.0 145.0 -22.6 125.2 108.2
Common Shares, End of Year (000s) 45,533 45,998 46,806 46,668 48,919 50,070 52,110 71,635 61,918 61,918
Common Shares Repurchased (000s) 1,218 941 0 2,258 1,151 2,040 19,525 0 0 0
Repurchase Outlay ($ millions) $40.2 $30.6 $0.0 $63.4 $30.6 $55.6 $950.6 $0.0 $0.0 $0.0
Common Shares Issued (000s) 753 133 138 7 0 0 0 9,717 0 0
Earnings Per Share -$3.09 $2.49 -$1.10 $2.06 $12.54 $2.20 $1.96 -$0.34 $2.02 $1.75
Dividend Per Share $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.50
Addns. to Property Plant and Equip. 167.9 146.7 165.6 201.5 175.8 120.9 94.5 127.0 116.6 82.9
Depreciation $132.7 $118.2 $100.3 $89.1 $85.5 $87.2 $87.4 $81.9 $75.7 $71.2
Book Value LT Debt/Capital 42.3% 39.6% 44.0% 44.1% 37.9% 48.0% 56.1% 28.5% 0.0% 0.0%
Market Value LT Debt/Capital 19.6% 27.5% 27.8% 30.5% 26.6% 25.3% 28.5% 23.4% 0.0% 0.0%
Notes: 1. P/E ratios are computed on earnings before restructuring charges, litigation award, and other extraordinary items.
Page 2
Exh. 3
Exhibit 3
Consolidated Statement of Earnings
(In $ millions)
Page 3
Exh. 4
Exhibit 4
Consolidated Balance Sheet
(In $ millions)
1995 1994
Assets
Current Assets
Cash and Cash Equivalents $73.3 $143.3
Short-Term Investments 9.8 85.6
Receivables, less allowances 550.4 541.0
Inventories 615.5 577.4
Prepaid Expenses and Other 208.5 141.4
Total Current Assets 1,457.5 1,488.7
Gross Property Plant and Equipment 2,164.4 2,043.4
Less Accumulated Depreciation 1,473.4 1,296.1
Net Property, Plant and Equipment 691.0 747.3
Prepaid Taxes -- non-current 113.3 80.7
Total Assets $2,261.8 $2,316.7
Page 4
Exh. 6
Exhibit 6
Financial Forecast, 1996-2000
Actual
1995
Annual Increase in Sales -3.2%
Opng. Profit/Sales 4.0%
Tax Rate
Wkg. Capital/Sales
Income Statement
Net Sales $2,236.9
Operating Profit 89.2
Interest Income 8.5
Interest Expense -52.1
Pre-Tax Income 45.6
Tax Expense -61.2
Net Income -15.6
Dividends 27.3
Retentions to Earnings $ (42.9)
Balance Sheet
Cash $ 83.1
Working Capital (without debt) 855.5
Prepaid Tax 113.3
Net Fixed Assets 691.0
Total Assets 1,742.9
Page 5
Exh. 6
Projected
1996 1997 1998 1999 2000
2.0% 5.0% 6.0% 6.0% 7.0%
8.0% 9.5% 10.0% 10.0% 10.0%
40.0%
37.0%
Page 6
Exh. 9
Exhibit 9
Key Industrial Financial Ratios
Three-Year Medians (1993-1995)
AAA AA A BBB BB
Pretax interest coverage (x) 13.50 9.67 5.76 3.94 2.14
EBITDA Interest coverage (x) 17.08 12.80 8.18 6.00 3.49
Funds from operations/total debt (%) 98.20% 69.10% 45.50% 33.30% 17.70%
Free operating cash flow/total debt (%) 60.00% 26.80% 20.90% 7.20% 1.40%
Pretax return on permanent capital (%) 29.30% 21.40% 19.10% 13.90% 12.00%
Operating income/sales (%) 22.60% 17.80% 15.70% 13.50% 13.50%
Long-term debt/capital (%) 13.30% 21.10% 31.60% 42.70% 55.60%
Total debt/capitalization incl. short-term debt (%) 25.90% 33.60% 39.70% 47.80% 59.40%
Source: Standard & Poor's CreditWeek October 30, 1996, page 26.
Page 7
Exh. 9
B
1.17
2.16
12.80%
-0.90%
9.00%
12.30%
65.50%
69.50%
Page 8
Analysis of Flexibility b
AAA AA A
1 Pre-tax Cost of Debt (Exh. 11) 6.70% 6.90% 7.00%
BBB BB B
6.00% 9.00% 10.60% what is difference in ex 11 ad ex12
160+39.7+526.7+45533*47.38/1000
2883.93 2883.93 2883.93
726.8 726.8 726.8 ex6
673.3977 944.1987 1242.685 944.19=64 643you can borrow before you shift to bb
-53.40235 217.3987 515.8854
-270.801 0 298.4868
673.4
either retire debt or have more equity
Projected
1996 1997 1998
Valuation Analysis
Free Cash Flow (from case Exhibit 6)
Terminal Value (Note 1)
Total FCF
DCF at 10%
Less Debt
Equity
Shares outstanding
Intrinsic Value Per Share
Recent Share Price
Premium of Price vs. Value
WACC =
G=
Capital Costs by Rating Category
AAA AA A
Cost of Debt (pre-tax) 6.70% 6.90% 7.00%
Cost of Equity 10.26% 10.30% 10.40%
BBB BB B
7.40% 9.00% 10.60%
0.87 0.87 0.87
30.46% 48.68% 75.72%
1.03 1.13 1.27
11.82% 12.33% 13.10%