Professional Documents
Culture Documents
XLS
Exh. 1
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
$1,019.0
1,217.9
2,236.9
2,147.7
89.2
247.0
52.1
-140.2
$1,160.3
1,152.2
2,312.5
2,112.2
200.3
0.0
46.6
117.2
$1,178.8
1,066.1
2,244.9
2,059.5
185.4
44.0
47.9
-51.3
$1,145.7
1,006.6
2,152.3
1,938.5
213.8
0.0
58.5
99.0
$1,113.6
957.0
2,070.6
1,824.0
246.6
0.0
58.4
683.7
$1,058.3
913.4
1,971.7
1,687.4
284.3
0.0
81.3
151.0
$1,091.8
812.9
1,904.7
1,600.5
304.2
40.5
86.2
145.0
$1,048.3
814.6
1,862.9
1,689.1
173.8
151.9
29.0
-22.6
$1,009.3
754.6
1,763.9
1,610.1
153.8
0.0
15.0
125.2
$964.3
664.9
1,629.2
1,493.5
135.7
0.0
18.6
108.2
45,533
1,218
$40.2
753
45,998
941
$30.6
133
46,806
0
$0.0
138
46,668
2,258
$63.4
7
48,919
1,151
$30.6
0
50,070
2,040
$55.6
0
52,110
19,525
$950.6
0
71,635
0
$0.0
9,717
61,918
0
$0.0
0
61,918
0
$0.0
0
-$3.09
$0.60
$2.49
$0.60
-$1.10
$0.60
$2.06
$0.60
$12.54
$0.60
$2.20
$0.60
$1.96
$0.60
-$0.34
$0.60
$2.02
$0.60
$1.75
$0.50
$738.5
691.0
2,261.8
526.7
0.0
717.7
$886.8
747.3
2,316.7
566.0
0.0
864.4
$833.6
718.2
2,212.3
602.3
0.0
767.3
$789.0
657.3
2,008.1
637.4
0.0
808.9
$695.3
549.4
1,889.3
471.8
0.0
772.9
$609.1
461.0
1,701.3
513.8
348.6
207.7
$642.0
430.9
1,776.7
602.2
321.9
148.8
$980.0
433.8
1,957.2
402.3
0.0
1,011.5
$652.6
359.6
1,599.4
0.0
0.0
1,048.2
$602.4
357.7
1,444.6
0.0
0.0
960.1
167.9
$132.7
42.3%
19.6%
146.7
$118.2
39.6%
27.5%
165.6
$100.3
44.0%
27.8%
201.5
$89.1
44.1%
30.5%
175.8
$85.5
37.9%
26.6%
120.9
$87.2
48.0%
25.3%
94.5
$87.4
56.1%
28.5%
127.0
$81.9
28.5%
23.4%
116.6
$75.7
0.0%
0.0%
82.9
$71.2
0.0%
0.0%
$32.50
459.27
13.3
15.5
1.73
1.05
7.37%
4.25%
1.30%
$33.50
466.25
15.6
18.4
2.04
1.15
6.59%
3.00%
9.90%
$31.13
435.71
14.2
19.8
1.80
1.15
7.67%
3.43%
7.67%
$26.63
417.09
12.2
19
1.69
1.20
8.14%
5.38%
30.55%
$23.38
330.22
15.6
14.4
5.63
1.25
8.61%
7.50%
-3.17%
$22.88
353.40
21.8
12.6
8.01
1.25
8.45%
8.11%
31.49%
$18.38
277.72
NMF
10.8
1.30
1.25
8.96%
6.67%
18.81%
$11.88
247.08
14.7
15.3
0.70
1.20
8.59%
5.78%
5.23%
$33.25
242.17
16.6
17.5
2.14
1.10
7.80%
5.97%
18.47%
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)
Years ended December 31,
1995
1994
Net Sales
United States
International
Total Net Sales
Cost of Goods Sold
Marketing, Research, & Admin.
Restructuring & Other.
Total Costs
Profit/(Loss) from Operations
Interest Income
Other Income
Interest Expense
Earnings/(Loss) Before Taxes
Tax Expense
Net Earnings/(Loss)
$1,019.0
1,217.9
2,236.9
$1,160.3
1,152.2
2,312.5
1,298.6
849.1
247.0
2,394.7
-157.8
1,324.2
788.0
0.0
2,122.2
200.3
8.7
-0.2
52.1
-201.4
-61.2
-140.2
9.7
-2.7
46.6
160.7
43.5
117.2
Page 3
Exh. 4
Exhibit 4
Consolidated Balance Sheet
(In $ millions)
Assets
Current Assets
Cash and Cash Equivalents
Short-Term Investments
Receivables, less allowances
Inventories
Prepaid Expenses and Other
Total Current Assets
Gross Property Plant and Equipment
Less Accumulated Depreciation
Net Property, Plant and Equipment
Prepaid Taxes -- non-current
Total Assets
Liabilities and Stockholders' Equity
Current Liabilities
Short-Term Debt
Current Portion of Long-Term Debt
Payables and Acrruals
Compensation & Benefits
Taxes Payable
Total Current Liabilities
Long-Term Debt
Accrued Postretirement Benefits
Accrued Postemployment Benefits
Total Liabilities
Preferred Stock
Common Stockholders' Equity
Common Stock (1)
Additional Paid-In Capital
Retained Earnings
Less Treasury Stock, at Cost
Less Deferred Compensation
Total Common Stockholders Equity
Total Liabilities and Stockholders' Equity
1995
1994
$73.3
9.8
550.4
615.5
208.5
1,457.5
$143.3
85.6
541.0
577.4
141.4
1,488.7
2,164.4
2,043.4
1,473.4
691.0
113.3
$2,261.8
1,296.1
747.3
80.7
$2,316.7
$160.4
39.7
274.9
197.4
46.6
719.0
526.7
257.2
41.2
1,544.1
0.0
$117.1
35.9
275.7
121.4
51.8
601.9
566.0
247.2
37.2
1,452.3
0.0
75.4
401.9
1,525.8
1,205.4
80.0
717.7
$2,261.8
75.4
387.2
1,692.1
1,174.5
115.8
864.4
$2,316.7
Page 4
Exh. 6
Exhibit 6
Financial Forecast, 1996-2000
Actual
1995
-3.2%
4.0%
1996
2.0%
8.0%
40.0%
37.0%
1997
5.0%
9.5%
Projected
1998
6.0%
10.0%
1999
6.0%
10.0%
83.1
855.5
113.3
691.0
1,742.9
$ 148.3
844.2
113.3
691.0
1,796.8
$ 187.1
886.4
113.3
691.0
1,877.8
$ 230.7
939.6
113.3
691.0
1,974.6
$ 280.3
996.0
113.3
691.0
2,080.5
726.8
298.4
717.7
$1,742.9
726.8
298.4
771.6
$1,796.8
726.8
298.4
852.6
$1,877.8
726.8
298.4
949.4
$1,974.6
726.8
298.4
1,055.3
$2,080.5
Page 5
269.2
(107.7)
140.0
(140.0)
(56.4)
105.1
Exh. 6
2000
7.0%
10.0%
$2,880.3
288.0
5.0
(52.1)
240.9
(96.4)
144.6
27.3
$ 117.2
$ 327.8
1,065.7
113.3
691.0
2,197.8
726.8
298.4
1,172.6
$2,197.8
$ 288.0
(115.2)
140.0
(140.0)
(69.7)
$ 103.1
Page 6
Exh. 9
Exhibit 9
Key Industrial Financial Ratios
Three-Year Medians (1993-1995)
AAA
13.50
17.08
98.20%
60.00%
29.30%
22.60%
13.30%
25.90%
Page 7
AA
9.67
12.80
69.10%
26.80%
21.40%
17.80%
21.10%
33.60%
A
5.76
8.18
45.50%
20.90%
19.10%
15.70%
31.60%
39.70%
BBB
3.94
6.00
33.30%
7.20%
13.90%
13.50%
42.70%
47.80%
BB
2.14
3.49
17.70%
1.40%
12.00%
13.50%
55.60%
59.40%
Exh. 9
B
1.17
2.16
12.80%
-0.90%
9.00%
12.30%
65.50%
69.50%
Page 8
Analysis of Flexibi
5
6
7
8
9
10
11
12
13
14
AAA
6.70%
AA
6.90%
A
7.00%
25.90%
3.01
10.40%
33.60%
3.01
14.39%
39.70%
3.01
17.95%
2,883.93
726.80
300.05
426.75
643.23
2,883.93
726.80
415.05
311.75
528.23
2,883.93
726.80
517.59
209.21
425.69
20.10
244.26
150.00
12.15
7.46
28.64
244.26
150.00
8.53
5.24
36.23
244.26
150.00
6.74
4.14
BBB
7.40%
BB
9.00%
B
10.60%
47.80%
3.01
23.33%
59.40%
3.01
32.71%
69.50%
3.01
43.09%
2,883.93
726.80
672.70
54.10
270.58
2,883.93
726.80
943.28
216.48
0.00
2,883.93
726.80
1,242.57
515.77
299.29
49.78
244.26
150.00
4.91
3.01
84.90
244.26
150.00
2.88
1.77
131.71
244.26
150.00
1.85
1.14
Valuation Analysis
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
2,094.54
-726.8
1,367.74
46
30.04
47.375
58%
1996
1997
Projected
1998
$120.8
$94.3
$99.2
$120.8
$94.3
$99.2
1999
2000
$105.1
$103.1
2,732.1
$2,835.2
$105.1
WACC =
G=
10%
6%
AAA
Cost of Debt (pre-tax)
Cost of Equity
6.70%
10.25%
4.02%
10.25%
25.90%
10.40%
9.60%
6.70%
0.87
11.61%
0.93
11.29%
4.02%
11.29%
25.90%
10.40%
0.10
0.90
10.53%
566.4
160.4
726.8
2157
0.25
0.34
AA
6.90%
10.30%
A
7.00%
10.40%
BBB
7.40%
10.50%
BB
9.00%
11.75%
B
10.60%
13.00%
4.14%
10.30%
4.20%
10.40%
4.44%
10.50%
5.40%
11.75%
6.36%
13.00%
33.60%
14.39%
39.70%
17.95%
47.80%
23.33%
59.40%
32.71%
69.50%
43.09%
AA
6.90%
0.87
16.81%
0.96
11.43%
A
7.00%
0.87
21.87%
0.99
11.58%
BBB
7.40%
0.87
30.42%
1.03
11.82%
BB
9.00%
0.87
48.61%
1.13
12.33%
B
10.60%
0.87
75.70%
1.27
13.10%
4.14%
11.43%
4.20%
11.58%
4.44%
11.82%
5.40%
12.33%
6.36%
13.10%
33.60%
14.39%
0.14
0.86
39.70%
17.95%
0.18
0.82
47.80%
23.33%
0.23
0.77
59.40%
32.71%
0.33
0.67
69.50%
43.09%
0.43
0.57
10.38%
10.25%
10.10%
10.06%
10.20%
Levered Beta
Tax Rate
Unlevered Beta
1.05
0.40
0.87