MIRA
INFORM REPORT
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Report Date : |
30.11.2012 |
IDENTIFICATION DETAILS
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Name : |
THE TORO COMPANY |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.10.2011 |
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Date of Incorporation : |
1935 |
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Legal Form : |
Public Parent |
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Line of Business : |
Designs, manufactures, and markets professional turf
maintenance equipment and services, turf irrigation systems, agricultural
micro-irrigation systems, landscaping equipment and lighting, and residential
yard and snow removal products. |
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No. of Employees : |
4,618 |
RATING & COMMENTS
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MIRAs 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 : |
Good |
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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 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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
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Source
: CIA |
Company Name and Address
THE
TORO COMPANY
Tel : 952-888-8801
Fax : 302-674-5266
Toll Free : (800) 348-2424
Website :
www.thetorocompany.com
Employees: 4,618
Company Type: Public
Parent
Corporate Family: 35
Companies
Traded:
Incorporation Date: 1935
Auditor: KPMG
LLP
Financials in: USD (In Millions)
Fiscal Year End: 31-Oct-2011
Reporting Currency: US
Dollar
Annual Sales: 1,884.0 1
Net Income: 117.7
Total Assets: 870.7 2
Market Value: 2,422.9
(09-Nov-2012)
Business Description
The Toro Company (Toro) designs, manufactures, and markets
professional turf maintenance equipment and services, turf irrigation systems,
agricultural micro-irrigation systems, landscaping equipment and lighting, and
residential yard and snow removal products. The Company operates in three
business segments: Professional, Residential, and Distribution. Its products
are advertised and sold at the retail level under the names of Toro, Exmark,
Irritrol, Hayter, Pope, Lawn-Boy and Lawn Genie. On June 24, 2011, the Company
completed the acquisition of certain assets of Lawn Solutions Commercial
Products, Inc. On January 17, 2011, Toro completed the acquisition of certain
assets of Unique Lighting Systems, Inc. In February 2012, the Company acquired
certain utility and underground product assets of Astec Underground, Inc., a
wholly owned subsidiary of Astec Industries, Inc. In April 2012, it acquired
light construction and hardscape product assets of Stone Construction
Equipment, Inc. For the nine months ended 03 August 2012, The Toro Company revenues
increased 7% to $1.62B. Net income increased 15% to $129.3M. Revenues reflect
Professional segment increase of 8% to $1.1B, Residential segment increase of
5% to $505.4M,
Industry
|
Industry |
Miscellaneous Capital Goods |
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ANZSIC 2006: |
2461 - Agricultural Machinery and Equipment Manufacturing |
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NACE 2002: |
2931 - Manufacture of agricultural tractors |
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NAICS 2002: |
333111 - Farm Machinery and Equipment Manufacturing |
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2931 - Manufacture of agricultural tractors |
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28301 - Manufacture of agricultural tractors |
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US SIC 1987: |
3524 - Lawn and Garden Tractors and Home Lawn and Garden Equipment |
Key Executives (Emails
Available)
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Name |
Title |
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Michael J. Hoffman |
Chairman of the Board and Chief Executive Officer |
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Renee J. Peterson |
Chief Financial Officer, Vice President - Finance |
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Peter M. Ramstad |
Vice President - Human Resources and Business Development |
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Timothy P. Dordell |
Vice President, General Counsel, Secretary |
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Michael D. Drazan |
Chief Information Officer, Vice President - Contractor Business |
Significant Developments
|
Topic |
#* |
Most Recent Headline |
Date |
|
Mergers & Acquisitions |
3 |
The Toro Company Acquires Light Construction And Hardscape Product
Assets Of Stone Construction Equipment, Inc |
26-Apr-2012 |
|
Negative Earnings Pre-Announcement |
1 |
Toro Co Lowers FY 2012 Guidance |
23-Aug-2012 |
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Other Earnings Pre-Announcement |
1 |
The Toro Company Issues FY 2012 Guidance In Line With Analysts'
Estimates; Issues Q1 2012 EPS Guidance In Line With Analysts' Estimates |
6-Dec-2011 |
|
Positive Earnings Pre-Announcement |
2 |
The Toro Company Raises FY 2012 Guidance-Conference Call |
24-May-2012 |
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Dividends |
4 |
Toro Co Declares Regular Quarterly Dividend |
18-Sep-2012 |
* number of significant
developments within the last 12 months
News
|
Title |
Date |
|
Upland
Public Works yard to become water-wise landscape |
25-Nov-2012 |
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Toro
Selects Four Finalists for 'Green Spaces Make Great Places' Grant Program |
21-Nov-2012 |
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Schenley
links in Pittsburgh certified as green |
19-Nov-2012 |
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GE Capital
Retail Bank and Toro extend private label credit card program |
19-Nov-2012 |
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The Zacks
Analyst Blog Highlights:Boeing Company, Microsoft Corporation, Timken Co.,
Cummins and Toro Co. |
15-Nov-2012 |
Financial Summery
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Key Ratios |
Company |
Industry |
|
Current Ratio (MRQ) |
1.63 |
2.15 |
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Quick Ratio (MRQ) |
1.05 |
1.00 |
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Debt to Equity (MRQ) |
0.67 |
2.35 |
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Sales 5 Year Growth |
0.52 |
6.89 |
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Net Profit Margin (TTM) % |
6.76 |
7.21 |
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Return on Assets (TTM) % |
13.75 |
5.95 |
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Return on Equity (TTM) % |
40.45 |
26.91 |
Stock Snapshot
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Traded: |
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As of 9-Nov-2012 Financials in: USD |
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ABI Number: 007537327
1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate:
USD 1 = USD 1
Location
Bloomington
United States
Tel: 952-888-8801
Fax: 302-674-5266
Toll Free Tel: (800)
348-2424
Website
Quote Symbol Exchange TTC
-
Sales USD(mil): 1,884.0
Assets USD(mil): 870.7
Employees: 4,618
Fiscal Year End: 31-Oct-2011
Industry: Miscellaneous
Capital Goods
Incorporation
Date: 1935
Company Type: Public
Parent
Quoted Status: Quoted
Chairman of the Board and Chief Executive Officer: Michael J. Hoffman
Industry Codes
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ANZSIC 2006 Codes: |
||
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2461 |
- |
Agricultural Machinery and Equipment Manufacturing |
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2299 |
- |
Other Fabricated Metal Product Manufacturing Not Elsewhere
Classified |
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231 |
- |
Motor Vehicle and Motor Vehicle Part Manufacturing |
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NACE 2002 Codes: |
||
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2931 |
- |
Manufacture of agricultural tractors |
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2913 |
- |
Manufacture of taps and valves |
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3410 |
- |
Manufacture of motor vehicles |
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NAICS 2002 Codes: |
||
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333111 |
- |
Farm Machinery and Equipment Manufacturing |
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332912 |
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Fluid Power Valve and Hose Fitting Manufacturing |
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336112 |
- |
Light Truck and Utility Vehicle Manufacturing |
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US SIC 1987: |
||
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3524 |
- |
Lawn and Garden Tractors and Home Lawn and Garden
Equipment |
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3523 |
- |
Farm Machinery and Equipment |
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3492 |
- |
Fluid Power Valves and Hose Fittings |
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3711 |
- |
Motor Vehicles and Passenger Car Bodies |
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||
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2931 |
- |
Manufacture of agricultural tractors |
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3410 |
- |
Manufacture of motor vehicles |
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2913 |
- |
Manufacture of taps and valves |
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||
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28301 |
- |
Manufacture of agricultural tractors |
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2910 |
- |
Manufacture of motor vehicles |
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2814 |
- |
Manufacture of other taps and valves |
The Toro Company (Toro), incorporated in 1935, designs, manufactures, and markets professional turf maintenance equipment and services, turf irrigation systems, agricultural micro-irrigation systems, landscaping equipment and lighting, and residential yard and snow removal products. The Company operates in three business segments: Professional, Residential, and Distribution. Its products are advertised and sold at the retail level under the names of Toro, Exmark, Irritrol, Hayter, Pope, Lawn-Boy and Lawn Genie. On June 24, 2011, the Company completed the acquisition of certain assets of Lawn Solutions Commercial Products, Inc. On January 17, 2011, Toro completed the acquisition of certain assets of Unique Lighting Systems, Inc. In February 2012, the Company acquired certain utility and underground product assets of Astec Underground, Inc., a wholly owned subsidiary of Astec Industries, Inc. In April 2012, it acquired light construction and hardscape product assets of Stone Construction Equipment, Inc.
Professional
The Company designs professional turf, landscape, and agricultural products and
markets them worldwide through a network of distributors and dealers, as well
as directly to Government customers, rental companies, and retailers. These channel
partners then sell its products to professional users engaged in creating and
renovating landscapes, irrigating turf and agricultural fields, and maintaining
turf, such as golf courses, sports fields, municipal properties, and
residential and commercial landscapes.
Landscape Contractor Market
The Company’s products for the landscape contractor market include zero-turn
radius riding mowers, heavy-duty walk behind mowers, mid-size walk behind
mowers, stand-on mowers, turf cultivation equipment, compact utility loaders,
walk-behind trenchers, and stump grinders. These products are sold through
dealers and are available through rental centers to individuals and companies
who maintain, create, and renovate residential and commercial landscapes on behalf
of property owners. The Company markets products to landscape contractors under
the Toro and Exmark brands. During the fiscal year ended October 31, 2011
(fiscal 2011), Toro introduced the Z Master G3 Commercial Series mower,
featuring its TURBO FORCE cutting decks, unitized pump, and wheel motors. It
also introduced the Exmark Pioneer E-Series and S-Series mowers, featuring a
cutting deck design, and the Exmark Quest mower. The Company offers over 35
attachments for its compact utility loaders, including trenchers, augers,
vibratory plows, and backhoes. In fiscal 2011, it acquired a line of turf
renovation equipment, including aerators, seeders, power rakes, and brush
cutters.
Sports Fields and Grounds Market
Products for the sports fields and grounds market include riding rotary mowers
and attachments, aerators, and debris management products, which include
versatile debris vacuums, blowers, and sweepers. Other products include
multipurpose vehicles, such as the Toro Workman, that can be used for turf maintenance,
towing, and industrial hauling. These products are sold through distributors,
who then sell to owners and/or managers of sports fields, Governmental
properties, and residential and commercial landscapes. In fiscal 2011, Toro
introduced the Groundsmaster 360 Quad-Steer.
Golf Course Market
The Company’s products for the golf course market include reel and rotary
riding products for fairway, rough and trim cutting; riding and walking mowers
for putting greens and specialty areas; turf sprayer equipment; utility
vehicles; aeration equipment; and bunker maintenance equipment. In fiscal 2011,
it introduced the Greensmaster TriFlex and TriFlex Hybrid, the riding greens
mower models. It also introduced the Toro Multi Pro 5800 turf sprayer,
featuring spray accuracy, and new attachments. Toro also manufactures and
markets underground irrigation systems, including sprinkler heads, controllers,
turf sensors, and electric, battery-operated, and hydraulic valves. Its
835S/855S Series golf sprinklers are equipped with a TruJectory feature that
provides water distribution control. Its Turf Guard wireless soil monitoring
systems are designed to measure soil moisture, salinity, and temperature
through buried wireless sensors that communicate through an Internet server for
processing and presentation to a user through the Web. In fiscal 2011, it
launched the R Series conversion assemblies that enable the upgrade of
sprinklers to Toro technologies, such as its TruJectory sprinklers with
adjustable height of spray capability.
Residential/Commercial Irrigation and
Lighting Market
Turf irrigation products marketed under the Toro and Irritrol brands include
rotors; sprinkler bodies and nozzles; plastic and brass valves; drip tubing and
subsurface irrigation; electric and hydraulic control devices; and wired and
wireless rain, freeze, and climate sensors. These products are designed to be
used in residential and commercial turf irrigation systems that are installed
into new systems or used to replace or retrofit existing systems. Most of the
product lines are designed for underground automatic irrigation. Electric and
hydraulic controllers activate valves and sprinkler bodies and nozzles in a
typical irrigation system. In fiscal 2011, the Company introduced the intuitive
Rain Master Eagle Plus control system and the Irritrol Climate Logic, a device
that automatically updates irrigation system watering times based on a
combination of historical and real-time weather data. It also launched a new
version of its Precision Series Rotating Nozzles. Its retail irrigation products
are marketed under the Toro and Lawn Genie brand names. These products are
designed for homeowner installation and include sprinkler heads, valves,
timers, and drip irrigation systems. Its ECXTRA sprinkler timers can be used
with a home computer and its Scheduling Advisor recommends the proper watering
schedule based on the local weather, plant type, and sprinkler. The Unique
Lighting Systems acquisition includes the Signature, Odyssey, and Brass and
Copper Knight series of products.
Micro-Irrigation Market
Products for the micro-irrigation market include products that regulate the
flow of water for drip irrigation, including Aqua-Traxx PBX drip tape,
Aqua-Traxx PC (pressure-compensating) drip tape, Blue Stripe polyethylene
tubing, BlueLine drip line, and NGE emitters, all used in agriculture, mining,
and landscape applications. In addition to these products, it offers control
devices and connection options. These products are sold primarily through
dealers and distributors who then sell to end users for use primarily in
vegetable fields, fruit and nut orchards, vineyards, landscapes, and mines. In
fiscal 2011, the Company introduced Aqua-Clear filters, a sand media filter for
growers with small to medium-sized fields. Toro introduced a variety of system
accessories, such as Layflat fittings and polyvinyl chloride (PVC) tubing.
Residential
The Company markets its residential products to homeowners through a variety of
distribution channels, including outdoor power equipment dealers, hardware retailers,
home centers, mass retailers, and over the Internet. These products are sold
mainly in North America, Europe, and
Walk Power Mower Products
The Company manufactures and markets a number of walk power mower models under
its Toro and Lawn-Boy brand names, as well as the Pope brand in
Riding Products
The Company manufactures and markets riding products under the Toro brand name
worldwide and under the Hayter brand name in the
Home Solutions Products
Toro designs and markets home solutions products under the Toro and Pope brand
names, including electric and battery-operated grass trimmers, electric
blower-vacuums, electric blowers, and electric snow throwers. In
Gas Snow Removal Products
The Company manufactures and markets a range of gas-powered single-stage and
two-stage snow thrower models. Single-stage snow throwers are walk behind units
with lightweight two- and four-cycle gasoline engines. Its two-stage snow
throwers are designed for large areas of deep, heavy snow and use four-cycle
engines. The Company’s two-stage snow throwers include a line of models
featuring the Power Max auger system and the Quick Stick chute control
technology
More Business
Descriptions
The Toro Company (Toro) designs, manufactures, and markets
professional turf maintenance equipment and services, turf irrigation systems,
agricultural micro-irrigation systems, landscaping equipment and lighting, and
residential yard and snow removal products. The Company operates in three
business segments: Professional, Residential, and Distribution. Its products
are advertised and sold at the retail level under the names of Toro, Exmark,
Irritrol, Hayter, Pope, Lawn-Boy and Lawn Genie. On June 24, 2011, the Company
completed the acquisition of certain assets of Lawn Solutions Commercial
Products, Inc. On January 17, 2011, Toro completed the acquisition of certain
assets of Unique Lighting Systems, Inc. In February 2012, the Company acquired
certain utility and underground product assets of Astec Underground, Inc., a
wholly owned subsidiary of Astec Industries, Inc. In April 2012, it acquired
light construction and hardscape product assets of Stone Construction
Equipment, Inc. For the nine months ended 03 August 2012, The Toro Company
revenues increased 7% to $1.62B. Net income increased 15% to $129.3M. Revenues
reflect Professional segment increase of 8% to $1.1B, Residential segment
increase of 5% to $505.4M,
Outdoor Care &
Maintenance Products Mfr
Establishments primarily engaged in manufacturing
lawnmowers, lawn and garden tractors, and other lawn and garden equipment used
for home lawn and garden care. Also included are establishments primarily
engaged in manufacturing snowblowers and throwers for residential use.
The Toro Company (NYSE: TTC) is a leading worldwide provider
of turf and landscape maintenance equipment and precision irrigation systems.
With sales of nearly $1.9 billion in fiscal 2011 Toros global presence extends
to more than 90 countries through its reputation of world-class service
innovation and turf expertise. Since 1914 the company has built a tradition of
excellence around a number of strong brands to help customers care for golf
courses sports fields public green spaces commercial and residential properties
and agricultural fields.
The Toro Company (Toro) designs, manufactures and markets
turf maintenance equipment and services, turf and micro irrigation systems,
landscaping equipment, and residential yard products globally. The company
offers its products through distributors, dealers and retailers across over 90
countries. The company offers its products to various markets, such as golf
course, professional contractors, sports fields and municipalities, homeowners
and agriculture and rental markets. It markets its products under Toro, Exmark,
Lawn-Boy, Irritrol, Lawn Genie, Pope and Hayter.The company its business
through three segments, namely, Professional, Residential and Others including
Distribution segment. The Professional business segment designs professional
turf and agricultural irrigation products. The turf equipment products
comprises of grounds maintenance equipment, sports fields equipment, landscape
contractor mowing, golf course mowing and maintenance and landscape creation
equipment. The Professional segments irrigation products include electric and
hydraulic valves, sprinkler heads, micro-irrigation drip tape, computer
irrigation central control systems, controllers and hose products. Toro sells
its products through network of distributors and dealers to professional users
engaged in creating landscapes, irrigating agricultural and turf fields, and
maintaining turf, such as sports fields, golf courses, residential, commercial
landscapes and municipal properties. For the fiscal year ended October 2011,
the Professional business segment generated revenue of $1,239.1m, which
accounted for 66% of the company's total sales revenue, indicating an increase
of 14.2% as compared to that in 2010. Toro through its Residential business
segment supplies its residential use turf products to homeowners through a
variety of distribution channels, including dealers, hardware retailers, home
centers and mass retailers and through Internet retailers. The products offered
by the company include walk power mowers, riding mowers, home solution
products, snow throwers, retail irrigation and gas snow removal products. The
company sells its residential use turf products in the markets of North
America, Europe and
The Toro Company (Toro) is a US-based supplier of outdoor
maintenance equipments and services. The company designs, manufactures and
markets turf maintenance equipment and services, turf and micro irrigation
systems, landscaping equipment, and residential yard products globally. It
markets its products under Toro, Exmark, Lawn-Boy, Irritrol, Lawn Genie, Pope
and Hayter. The company offers its products through distributors, dealers and
retailers to various markets, such as golf course, professional contractors,
sports fields and municipalities, homeowners and agriculture and rental
markets. It operates across the
The Toro Company is a provider of outdoor maintenance, lawn
and garden products for home, recreation and commercial landscapes. The company
provides products, agronomic knowledge and services that help consumers and
professionals maintain their landscapes. From landscapers and golf course
managers to homeowners, grounds and sports field managers, Toro equipment
satisfies the needs of its customers. The Toro Motor Company was established in
1910 to build tractor engines for its very first customer, The Bull Tractor
Company. Since then, the company has grown to serve private and commercial
needs of a variety of companies, such as Walt Disney Wide World of Sports, the
University of Notre Dame, the official provider of lawn care equipment for the
Indianapolis Motor Speedway, the preferred equipment provider for The Ryder Cup
and the British Open and the official supplier of turf maintenance and
irrigation equipment for the Rose Bowl. The Toro Company has a location in
Manufacturer of outdoor maintenance and beautification products
for home, recreation, and commercial landscapes. Products include utility lawn
care vehicles, snow blowers/throwers, aerators, and irrigation equipment.
Products are sold to golf course superintendents, groundskeepers, sports field
managers, landscape contractors, fruit and vegetable growers, and homeowners.
Product Code
|
Product Code |
Product Description |
|
ENV-TR-WS |
Irrigation systems |
|
ENV-TR-WTA |
Aeration equipment |
Brand / Trade Name
|
Ez-Flo - Irrigation equipment |
Multimatrx - Nozzles |
|
Network Ltc - Computer software |
Recycler - Lawn mowers |
|
Roadhawk - Machinery |
Blue Stripe - Tubes - plastic |
|
Snow Pup - Snowblowers |
Elec Trak - Tractors - lawn |
|
Toro - Lawn mowers |
Mow & Feed - Lawn mowers |
|
When You Want It Done Right - Machinery |
R Tek - Engines |
|
Accufeed - Tools - garden |
Attach-A-Matic - Lawn mowers |
|
Easy Mulch - Lawn mowers |
Ecx - Electrical equipment |
|
Green Series - Lawn mowers |
Guardian - Lawn mowers |
|
Power Throw - Snowblowers |
Quicksecure - Electric lighting equipment |
|
Silverpro Series - Lawn mowers |
Smart Turn - Motor vehicle parts and
accessories |
|
Super Flow System - Lawn mowers |
Dense Pak - Machine parts |
|
Turbo Force - Lawn mowers |
Ez-Remote - Electronic equipment |
|
Snow Hound - Motor vehicles - ambulances |
Osmac - Computer software |
|
Thatchattack - Fertilizers |
Silver - Lawn mowers |
|
Wheel Horse - Tractors - lawn |
Sportlawn - Lawn mowers |
|
Smartwheel - Machinery |
2001 - Sprinklers - lawn |
|
T.Map - Computer software |
Dl 2000 - Irrigation equipment |
|
Variset - Electric lighting equipment |
Goldpro Series - Lawn mowers |
|
T. Weather - Computer software |
Personal Pace - Lawn mowers |
|
Vacu Power - Lawn mowers |
Ace - Electronic equipment |
|
Silver Series - Lawn mowers |
Easy Stride - Lawn mowers |
|
Sportsman - Lawn mowers |
Greenkeeper - Electronic equipment |
|
Toro/Moist O'Matic - Sprinklers - lawn |
Progrind - Grinders |
|
Work Horse - Tractors - lawn |
Sitepro - Computer software |
|
Toro Nurture - Fertilizers |
Superhumus - Fertilizers |
|
Whirlwind - Lawn mowers |
Turfdefender - Electronic equipment |
|
Carefree - Lawn mowers |
Cr - Sprinklers - lawn |
|
Electro-Flow - Computer software |
|
|
|
|
Financial Data
|
Financials in: |
USD(mil) |
1 Year Growth |
|
Revenue: |
1,884.0 |
11.5% |
|
Net Income: |
117.7 |
26.2% |
|
Assets: |
870.7 |
-1.7% |
|
Long Term Debt: |
225.2 |
|
|
Total Liabilities: |
603.9 |
|
|
Working Capital: |
0.3 |
|
|
Date of Financial Data: |
31-Oct-2011 |
Market Data
|
Quote Symbol: |
TTC |
|
Exchange: |
|
|
Currency: |
USD |
|
Stock Price: |
41.3 |
|
Stock Price Date: |
11-09-2012 |
|
52 Week Price Change %: |
46.6 |
|
Market Value (mil): |
2,422,888.0 |
|
SEDOL: |
2897040 |
|
ISIN: |
US8910921084 |
|
Equity and Dept Distribution: |
|
|
Common Stock $1 Par, 07/12, 100M auth.,
31,040,200 issd., Insiders Owns 2.22%. IPO: 4/83, 1M shares @ $11.625
byGoldman Sachs & Co. 4/05 &4/03, 2-for-1 stock split. 07/12, 2-for-1
Stock split. |
|
Auditor: KPMG LLP
Auditor: KPMG LLP
ABI Number: 007537327
Fortune 1000 Rank: 951
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This four-year initiative is intended to focus our efforts on driving our legacy of excellence through building caring relationships and engaging in innovation. As this is a multi-year initiative, we will strive to achieve our Destination 2014 goals by pursuing a progression of annual milestones. Each fiscal year we will set forth associated organic revenue growth, operating earnings, and employee engagement goals, such as continuous improvement projects with cross-functional collaboration, and we will also strive to continue to focus on the progress we made through our previous initiatives, such as working capital. Organic Revenue Growth. We intend to pursue strategic growth of our existing businesses and product categories with an annual organic revenue growth goal. |
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We exceeded our fiscal 2011 organic revenue growth goal of
$100 million for fiscal 2011. Operating Earnings Growth. As part of our dual strategy growth goals, we have also set a bold
earnings goal to raise operating earnings as a percentage of net sales to 12
percent by the end of fiscal 2014. In fiscal 2011, we made progress towards
this goal by achieving operating earnings as a percentage of net sales of 9.8
percent. Outlook for Fiscal 2012 While our financial results for fiscal 2011
were positive, uncertainty in worldwide economies has increased. |
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Helpful |
Harmful |
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Internal Origin |
Strengths |
Weaknesses |
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External Origin |
Opportunities |
Threats |
Overview
The Toro Company
(Toro) designs, manufactures and markets turf maintenance equipment and
services, turf and micro irrigation systems, landscaping equipment, and
residential yard products globally. The company offers its products through
distributors, dealers and retailers across over 90 countries. The company
leverages on its product portfolio and wide network of channels to tap immense
market potential, thereby accelerating its growth. However, legal issues,
highly competitive market, regulated industry might have an adverse impact on
the company’s ability to generate revenue.
Strengths
Strong Profitability Indicator
The company reported
strong profitability in 2011. The company’s revenue increased from $1690.38m
in 2010 to $1883.95m in 2011, its operating income increased from $ 151.32m in
2010 to $ 185.03m in 2011, and its net income increased from $93.24m in 2010 to
$117.66m in 2011. The company’s gross profit incremented from $576.39m in
2010 to $636.65m in 2011. This can be attributed to the increase in sales of
its products across all of its businesses resulting from the increase in
demand. This increment is also due to the launch of new products, increase in
sales of the Professional segment by 14.2% n 2011 over that of 2010; and sales
of its International segment increased by 5.8% in 2011 over that of 2010. As a
result of this, its profitability ratios increased. The operating margin
increased from 8.95% in 2010 to 9.82% in 2011, net profit margin increased from
5.51% in 2010 to 6.24% in 2011, return on equity increased from 33.8% in 2010
to 44.1% in 2011, return on capital employed increased from 29.25% in 2010 to
36.16% in 2011, return on assets increased from 10.52% in 2010 to 13.51% in
2011, return on fixed assets increased from 50.33% in 2010 to 54.77% in 2011,
and return on working capital increased from 69.83% in 2010 to 106.46% in 2011.
The company
leverages on its extensive product portfolio to tap immense market potentials.
Toro designs, manufactures and markets turf maintenance equipment and services,
turf and micro irrigation systems, landscaping equipment, and residential yard
products globally. The company through its Professional segment offers products
to various markets, namely, landscape contractor market, sports fields and
grounds market, golf course market, residential and commercial irrigation and
lighting market, micro-irrigation market. For the landscape contractor market,
Toro offers zero-turn radius riding mowers, stand-on mowers, heavy-duty walk
behind mowers, turf cultivation equipment, mid-size walk behind mowers,
walk-behind trenchers, compact utility loaders, and stump grinders. These
products are marketed under the Toro and Exmark brands. Its products for the sports
field and ground markets include aerators, riding rotary mowers and
attachments, and debris management products, including blowers, versatile
debris vacuums, sweepers, multipurpose vehicles, such as the Toro Workman. For
the golf market, it offers large reel and rotary riding products, riding and
walking mowers, turf sprayer equipment, utility vehicles, aeration equipment
and bunker maintenance equipment. Products for the residential and commercial
irrigation and lighting market include rotors, drip tubing and subsurface
irrigation, sprinkler bodies and nozzles, electric and hydraulic control
devices, plastic and brass valves, and wired and wireless rain, freeze, and
climate sensors. For the micro-irrigation market, the company provides a range
of products for regulating the flow of water for dip irrigation, such as
Aqua-Traxx PC (pressure-compensating) drip tape, Aqua-Traxx PBX drip tape,
BlueLine drip line, Blue Stripe polyethylene tubing, and NGE emitters. Through
its Residential segment, the company provides a range of products such as walk
power mower products, home solutions products and gas snow removal products.
The company markets the walk power mower products under Toro, Lawn-Boy brands,
as well as the Pope brand in
The company
leverages on its wide channels to sell, distribute and market its products to a
large customer base across the world. The company sells its products through a
network of distributors, hardware retailers, dealers, mass retailers, home
centers and over the internet. Toro markets its products through more than 40
domestic and 120 international distributors across over 90 countries. The
company sells its Professional segment’s products through a network of
dealers and distributors to users who maintain golf courses, municipal
properties, sports field, residential and commercial landscape; and sells
directly to rental companies, government customers and large retailers. Its
Residential segment’s products are sold through dealers, distributors,
hardware retailers, home centers, mass retailers, and over the internet. In
2011, the company also established two domestic distribution companies. The
company also operates sales offices across the
Weaknesses
The company is
involved in various lawsuits and legal proceedings, which not only could have
an impact on the company’s brand image in the market, but also needs
significant commitments on the cost and the management resource front. It has been
facing several class action lawsuits against its lawnmower engine horsepower
product marketing and sales practices issues. Since 1994, a class action
lawsuit was filed by the individuals who claimed to have purchased lawnmowers
in
Increasing debt
could have a major impact on the operational performance of the company as a
major portion of the company's earnings would be diverted to servicing its debt
obligations. This could be of concern to the investors and make it difficult
for the company to raise funds on favorable terms from the market. The
company's total debt increased from $226.58m in 2010 to $227.2m in 2011,
comprising long term debt of $225.18m. This obligations include debentures of
$100m due 2027 at an interest rate of 7.8%, senior notes of $123.42m due 2037
at an interest of 6.62% and other consisting $3.73m. As a result, the company
reported substantially high leverage ratios, as its debt to equity ratio
increased from 82.15% in 2010 to 85.16%, and debt to capital ratio increased from
43.79% in 2010 to 44.41% in 2011. The company incurred this debt to meet its
working capital and capital expenditure needs. If it fails to comply with any
of the debt service requirements, the debt could become due and payable prior
to its scheduled maturity. The company needs to dedicate a significant portion
of its cash flow from operations to service interest and principal payments.
Any reduction in revenues and operating cash flows could hinder the company’s
ability to repay interest and principal, resulting in default.
Opportunities
Toro could be
significantly benefited from expanding its business in new emerging markets.
The company has presence in
Growing Opportunities in E-Retailing
Online shopping,
also called e-retailing, has been witnessing a strong growth in the recent
years, mostly due to the rising internet penetration and the user-friendly
shopping interface created by the retailers. With brand promotions and
attractive features in its website, Toro could attract more customers and
generate higher revenue. With Toro's strong brand equity, it can expect a huge
sales growth in the near future. The company also markets its residential
products over the internet. It also advertises its residential and professional
products through internet, besides radio, print and mail programs its ecommerce
website, www.torodealer.com, offering its Toro product line. According to
industry experts, the online retail sales in the
New Product Launches and Acquisitions
The company’s new
product launches and acquisitions of product lines could accelerate its revenue
generation and strengthen its market size. In June 2012, the company announced
the shipment of new Toro Greensmaster eFlex walk greensmower in the
Threats
The company operates
in a highly competitive outdoor maintenance equipment and services market. With
the entry of more new players in this market, the current level of competition
is expected to further intensify in the near future, which may result in price
reductions. The company competes with a wide range of professional turf
maintenance equipment and services, turf and micro irrigation systems,
landscaping equipment, and residential yard products which are manufactured and
distributed by companies with substantially greater financial, marketing and distribution
resources. Key competitors include Textron Inc., Deere & Company, Alamo
Group Inc., Case Corporation and Caterpillar Inc., among others. The key
competitive factors in which the competitors overtake the company are
substantially greater operations and financial resources. As a result of which
they quickly adopt to the new or emerging technologies in the market. Under
such situations, the company has to maintain the product quality and consumer
loyalty, this intense competition could reduce the sales volume of the company,
thereby hampering its market position.
The company’s
operations are subject to various federal, state, and local laws and
environmental regulations. For certain off-road equipment, The United States
Environmental Protection Agency (EPA) and the California Air Resources Board
(CARB) have adopted emission regulations setting with maximum emission
standards. Besides, the federal government and the State of
Rising manpower
costs could increase the company's operating costs. With the shortage of
talented manpower and increasing government mandated minimum wages, the labor
costs have been witnessing an increase. A very significant portion of the
workforce, falling under the purview of minimum wages, work in the retail
sector. In the
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* Similar Businesses are defined as the closest businesses sharing the same six-digit primary SIC code ( 3524-05 - Lawn Mowers-Manufacturers) regardless of size.
Corporate
Structure News
The
Toro Company
Total Corporate Family Members: 35
|
Company Name |
Company Type |
Location |
Country |
Industry |
Sales |
Employees |
|
Parent |
|
|
Miscellaneous Capital Goods |
1,884.0 |
4,618 |
|
|
Subsidiary |
|
|
Miscellaneous Capital Goods |
|
900 |
|
|
Branch |
|
|
Miscellaneous Capital Goods |
356.8 |
800 |
|
|
Facility |
Windom, MN |
|
Miscellaneous Capital Goods |
267.6 |
600 |
|
|
Subsidiary |
|
|
Construction and Agriculture Machinery |
122.0 |
600 |
|
|
Facility |
|
|
Miscellaneous Capital Goods |
81.0 |
550 |
|
|
Subsidiary |
|
|
Water Utilities |
130.0 |
300 |
|
|
Subsidiary |
|
|
Consumer Financial Services |
|
200 |
|
|
Branch |
|
|
Retail (Home Improvement) |
1.1 |
4 |
|
|
Facility |
|
|
Construction and Agriculture Machinery |
13.4 |
250 |
|
|
Subsidiary |
Beverley, SA |
|
Miscellaneous Capital Goods |
29.2 |
242 |
|
|
Subsidiary |
Bishop's Stortford |
|
Business Services |
31.6 |
141 |
|
|
Subsidiary |
Bishop's Stortford |
|
Miscellaneous Capital Goods |
31.6 |
141 |
|
|
Subsidiary |
|
|
Water Utilities |
0.7 |
120 |
|
|
Branch |
Sanford, FL |
United States |
Construction and Agriculture Machinery |
14.9 |
30 |
|
|
Subsidiary |
Beverly |
Australia |
Construction and Agriculture Machinery |
|
110 |
|
|
Division |
Plymouth, WI |
United States |
Construction and Agriculture Machinery |
23.5 |
100 |
|
|
Subsidiary |
Brooklyn Center, MN |
United States |
Construction and Agriculture Machinery |
5.0 |
100 |
|
|
Subsidiary |
St Louis, MO |
United States |
Construction and Agriculture Machinery |
5.0 |
10 |
|
|
Branch |
Maple Grove, MN |
United States |
Construction and Agriculture Machinery |
0.5 |
1 |
|
|
Branch |
Burnsville, MN |
United States |
Construction and Agriculture Machinery |
0.5 |
1 |
|
|
Subsidiary |
Fiano Romano, Roma |
Italy |
Miscellaneous Capital Goods |
15.8 |
77 |
|
|
Subsidiary |
Fiano Romano, Roma |
Italy |
Miscellaneous Capital Goods |
35.6 |
5 |
|
|
Subsidiary |
Riverside, CA |
United States |
Furniture and Fixtures |
|
50 |
|
|
Subsidiary |
Oevel |
Belgium |
Electronic Instruments and Controls |
39.6 |
40 |
|
|
Branch |
Abilene, TX |
United States |
Personal Services |
|
40 |
|
|
Subsidiary |
Bloomington, MN |
United States |
Consumer Financial Services |
|
29 |
|
|
Subsidiary |
Riverside, CA |
United States |
Water Utilities |
|
23 |
|
|
Branch |
Pompano Beach, FL |
United States |
Retail (Home Improvement) |
0.8 |
6 |
|
|
Subsidiary |
Louisville, KY |
United States |
Construction Services |
|
5 |
|
|
Subsidiary |
Manasquan, NJ |
United States |
Engineering Consultants |
|
4 |
|
|
Branch |
El Paso, TX |
United States |
Retail (Home Improvement) |
0.3 |
2 |
|
|
Branch |
San Antonio, TX |
United States |
Retail (Home Improvement) |
0.3 |
2 |
|
|
Branch |
Windom, MN |
United States |
Retail (Home Improvement) |
0.3 |
2 |
|
|
Branch |
Tomah, WI |
United States |
Retail (Home Improvement) |
0.3 |
2 |
Competitors
Report
|
CompanyName |
Location |
Employees |
Ownership |
|
AB Electrolux |
Stockholm, Sweden |
60,235 |
Public |
|
AGCO Corporation |
Duluth, Georgia, United States |
17,366 |
Public |
|
Alamo Group, Inc. |
Seguin, Texas, United States |
2,500 |
Public |
|
Ariens Company Inc. |
Brillion, Wisconsin, United States |
700 |
Private |
|
Briggs & Stratton Corporation |
Wauwatosa, Wisconsin, United States |
6,321 |
Public |
|
Caterpillar Inc. |
Peoria, Illinois, United States |
129,113 |
Public |
|
Crane Co. |
Stamford, Connecticut, United States |
11,000 |
Public |
|
Deere & Company |
Moline, Illinois, United States |
61,300 |
Public |
|
Dover Corporation |
Downers Grove, Illinois, United States |
34,000 |
Public |
|
Elgo Irrigation Ltd. |
Caesarea, Israel |
77 |
Public |
|
Fiskars Oyj Abp |
Helsinki, Finland |
3,495 |
Public |
|
Flowserve Corporation |
Irving, Texas, United States |
16,000 |
Public |
|
General Cable Corporation |
Highland Heights, Kentucky, United States |
12,000 |
Public |
|
Harsco Corporation |
Camp Hill, Pennsylvania, United States |
19,650 |
Public |
|
Illinois Tool Works Inc. |
Glenview, Illinois, United States |
65,000 |
Public |
|
International Game Technology |
Las Vegas, Nevada, United States |
4,600 |
Public |
|
ITT Corporation |
White Plains, New York, United States |
8,500 |
Public |
|
Kennametal Inc. |
Latrobe, Pennsylvania, United States |
12,932 |
Public |
|
Kubota Corp |
Osaka-Shi, Japan |
29,185 |
Public |
|
Lennox International Inc. |
Richardson, Texas, United States |
12,400 |
Public |
|
LESCO-John Deere Landscapes |
Cleveland, Ohio, United States |
1,122 |
Private |
|
MTD Products, Inc. |
Valley City, Ohio, United States |
6,600 |
Private |
|
NACCO Industries, Inc. |
Cleveland, Ohio, United States |
9,300 |
Public |
|
Pall Corporation |
Port Washington, New York, United States |
10,800 |
Public |
|
Parker-Hannifin Corporation |
Cleveland, Ohio, United States |
60,000 |
Public |
|
Q.E.P. Co., Inc. |
Boca Raton, Florida, United States |
360 |
Public |
|
Simplicity Manufacturing, Inc. |
Port Washington, Wisconsin, United States |
550 |
Private |
|
Snap-on Incorporated |
|
11,500 |
Public |
|
Tecumseh Products Company |
|
6,120 |
Public |
|
Teleflex Incorporated |
|
11,500 |
Public |
|
Terex Corporation |
|
22,600 |
Public |
|
Textron Inc. |
|
32,000 |
Public |
|
The Alpine Group, Inc. |
East |
410 |
Public |
|
The Black & Decker Corporation |
|
19,900 |
Private |
|
The Shaw Group Inc. |
|
25,000 |
Public |
|
The Timken Company |
|
20,954 |
Public |
|
T-Systems International Inc. |
|
150 |
Private |
Board of Directors
|
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Chairman of the Board and Chief Executive Officer |
Chairman |
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Lead Independent Director |
Director/Board Member |
Reuters OSX |
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Independent Director |
Director/Board Member |
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Independent Director |
Director/Board Member |
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Independent Director |
Director/Board Member |
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Independent Director |
Director/Board Member |
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Independent Director |
Director/Board Member |
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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|
Independent Director |
Director/Board Member |
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|
Independent Director |
Director/Board Member |
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Independent Director |
Director/Board Member |
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Executives
|
|
|
||||||||
|
Chairman of the Board and Chief Executive Officer |
Chief Executive Officer |
||||||||
|
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|
Vice President, Operations & Quality Management |
Operations Executive |
|
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|
||||||||||
|
Operations Manager |
Operations Executive |
|
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|
Operations Manager |
Operations Executive |
|
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|
General Manager-Site Works |
Operations Executive |
|
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|
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|
Operations |
Operations Executive |
|
|||||||
|
Cad Administrator |
Administration Executive |
|
|||||||
|
|
||||||||||
|
System Administrator, The Toro Company |
Administration Executive |
|
|||||||
|
Senior Systems Administrator, The Toro Company |
Administration Executive |
|
|||||||
|
Security Analyst |
Security |
|
|||||||
|
Customs Compliance and Security Senior Manager |
Security |
|
|||||||
|
Security Analyst |
Security |
|
|||||||
|
Vice President, General Counsel, Secretary |
Company Secretary |
|
|||||||
|
||||||||||
|
Director, Corporate Finance |
Finance Executive |
|
|||||||
|
Finance |
Finance Executive |
|
|||||||
|
Chief Financial Officer, Vice President - Finance |
Finance Executive |
|
|||||||
|
||||||||||
|
Financial Controller, Toro Austrailia |
Finance Executive |
|
|||||||
|
Senior Manager Tax Accounting |
Accounting Executive |
|
|||||||
|
Tax Compliance Manager |
Corporate Tax Executive |
|
|||||||
|
Vice President, Treasurer |
Treasurer |
|
|||||||
|
||||||||||
|
Vice President, Corporate Controller |
Controller |
|
|||||||
|
||||||||||
|
Corporate Benefits Specialist |
Benefits & Compensation Executive |
|
|||||||
|
|
||||||||||
|
Payroll Time Specialist |
Benefits & Compensation Executive |
|
|||||||
|
Analyst-Human Resources |
Human Resources Executive |
|
|||||||
|
Manager-Risk Management |
Human Resources Executive |
|
|||||||
|
||||||||||
|
Vice President - Human Resources and Business Development |
Human Resources Executive |
|
|||||||
|
||||||||||
|
Senior Human Resources Representative |
Human Resources Executive |
|
|||||||
|
Senior Manager Training and Od |
Training Executive |
|
|||||||
|
Director Exmark Customer Service |
Customer Service Executive |
|
|||||||
|
Sports Field and Grounds District Sales Manager |
Sales Executive |
|
|||||||
|
Government Sales Manager |
Sales Executive |
|
|||||||
|
Senior Sales Information Analyst |
Sales Executive |
|
|||||||
|
Vice President - International Business |
International Executive |
|
|||||||
|
||||||||||
|
Marketing |
Marketing Executive |
||||||||
|
Electronic Design Tech |
Marketing Executive |
||||||||
|
Marketing |
Marketing Executive |
||||||||
|
Senior Marketing Manager |
Marketing Executive |
||||||||
|
Marketing Manager |
Marketing Executive |
||||||||
|
Marketing Executive |
Marketing Executive |
||||||||
|
Marketing Manager |
Marketing Executive |
||||||||
|
Manager-Public Relations |
Corporate Communications Executive |
||||||||
|
Managing Director, Corporate Communications and Investor Relations |
Corporate Communications Executive |
||||||||
|
Media Contact |
Public Relations Executive |
||||||||
|
Application Systems Architect |
Information Executive |
||||||||
|
Chief Information Officer, Vice President - Contractor Business |
Information Executive |
||||||||
|
||||||||||
|
Data Analyst |
Information Executive |
||||||||
|
Information Utility |
Information Executive |
||||||||
|
Systems Administrator |
Information Executive |
||||||||
|
|
||||||||||
|
Information Technology |
Information Executive |
||||||||
|
Manager, Service Systems |
Information Executive |
||||||||
|
Data Analyst |
Information Executive |
||||||||
|
Supply Chain Systems & Applications |
Information Executive |
||||||||
|
Information Systems Manager |
Network Management Executive |
||||||||
|
Network Administrator |
Network Management Executive |
||||||||
|
|
||||||||||
|
Network Analyst |
Network Management Executive |
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|
Systems Architect |
Network Management Executive |
||||||||
|
Engineering Manager |
Engineering/Technical Executive |
||||||||
|
Technical Manager - Toro's Micro-Irrigation Business |
Engineering/Technical Executive |
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|
Computer Software, Developer, The Toro Company |
Engineering/Technical Executive |
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|
Design Engineer |
Engineering/Technical Executive |
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|
Engineer |
Engineering/Technical Executive |
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|
National Manager For Water Management Products |
Product Management Executive |
||||||||
|
Product Manager |
Product Management Executive |
||||||||
|
Director-Business Development |
Business Development Executive |
||||||||
|
Vice President, Sales, Commercial Service |
Commercial Executive |
||||||||
|
Vice President - Commercial Business |
Commercial Executive |
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|
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|
Vice President Service and Distributio... |
Logistics Executive |
|
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|
Senior Buyer |
Merchandise Management Executive |
|
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|
Manager of Service Parts Inventory |
Merchandise Management Executive |
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|
Manager, Supply Chain Applications |
Purchasing Executive |
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|
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|
Corporate Risk Analyst |
Insurance Executive |
|
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|
|
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|
Director of Global Sourcing |
Other |
|
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|
Director of Sourcing |
Other |
|
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|
Vice President - Irrigation Business |
Other |
|
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|
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|
Associate |
Other |
|
|||||||
|
Vice President - Residential and Landscape Contractor Businesses |
Other |
|
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|
Crm Analyst |
Other |
||||||||
|
Manager, Business Intelligence, Australia |
Other |
||||||||
|
Executive Manager |
Other |
||||||||
|
Manager - Level |
Other |
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|
Manager - Level |
Other |
||||||||
|
Area Manager - Latin America |
Other |
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Staffing Specialist |
Other |
||||||||
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Cost Estimator |
Other |
||||||||
|
Supervisor, Customer Relations |
Other |
||||||||
|
Merchandising Manager |
Other |
||||||||
|
Customer E-Business |
Other |
||||||||
|
Cad Designer |
Other |
||||||||
|
Learning & Development |
Other |
|
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|
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Toro Co Declares
Regular Quarterly Dividend
Sep 18, 2012
Toro Co announced that its board of directors has declared a regular quarterly
cash dividend of $0.11 per share. This dividend is payable on October 15, 2012
to shareholders of record on October 1, 2012.
Toro Co Lowers FY
2012 Guidance
Aug 23, 2012
Toro Co announced that for fiscal 2012, it expects revenue growth to be about
4%-5% and net earnings to be about $2.10 per share, which continues to include
the $0.08 negative earnings per share impact for investments related to the
Astec and Stone product-line acquisitions. The Company reported revenue of
$1.884 billion in fiscal 2011. According to I/B/E/S Estimates, analysts were
expecting the Company to report revenue of $2.014 billion and EPS of $2.16 for
fiscal 2012.
The Toro Company
Raises FY 2012 Guidance-Conference Call
May 24, 2012
The Toro Company raised its fiscal 2012 guidance and expects net earnings to be
about $4.30 per share, which includes a $0.15 to $0.20 expense associated with
the investment in the integration of Astec and Stone acquisitions. The Company
is increasing its fiscal 2012, revenue guidance to between 7% and 8%. The
Company reported revenues of $1.884 billion in fiscal 2011. According to
I/B/E/S Estimates, analysts were expecting the Company to report EPS of $4.28
on revenues of $2.022 billion for fiscal 2012.
The Toro Company
Declares Regular Quarterly Dividend
May 15, 2012
The Toro Company announced that its Board of Directors has declared a regular
quarterly cash dividend of $0.22 per share. This dividend is payable on June
18, 2012 to shareholders of record on June 4, 2012.
The Toro Company
Acquires Light Construction And Hardscape Product Assets Of Stone Construction
Equipment, Inc
Apr 26, 2012
The Toro Company announced that it has acquired light construction and
hardscape product assets of Stone Construction Equipment, Inc., which
manufactured concrete and hardscape equipment for rental and construction
companies. Terms of the transaction were not disclosed.
The Toro Company
Declares Regular Quarterly Dividend
Mar 20, 2012
The Toro Company announced that its board of directors has declared a regular
quarterly cash dividend of $0.22 per share. This dividend is payable on April
16, 2012 to shareholders of record on April 2, 2012.
The Toro Company
Raises FY 2012 Guidance; Issues Q2 2012 In Line With Analysts' Estimates
Feb 23, 2012
The Toro Company announced that factoring in the stronger sales growth from the
first quarter and the acquisitions recently announced the company now expects a
revenue increase for fiscal 2012 of about 6% to 7%. The Company also expects
fiscal 2012 net earnings to be about $4.20 per share which includes a
$0.10-$0.15 negative EPS impact for integration investments related to the acquisition
of the Astec products. For the second quarter of 2012, it expects to report net
earnings of about $2.10 per share. The Company reported revenues of $1.884
billion in fiscal 2011. According to I/B/E/S Estimates, analysts were expecting
the Company to report EPS of $2.09 for the second quarter of 2012.
The Toro Company
Acquires Utility Trenchers, Vibratory Plows And Directional Drills From Astec
Industries, Inc.'s Astec Underground, Inc.
Feb 10, 2012
The Toro Company announced that it has acquired certain utility and underground
product assets of Astec Underground, Inc., a wholly owned subsidiary of Astec
Industries, Inc. Terms of the transaction were not disclosed. Through the
acquisition, Toro has acquired Astec Underground's equipment line of vibratory
plows, trenchers and horizontal directional drills for the underground
utilities market. Typically used in the installation, repair and replacement of
utilities with minimal impact on surrounding landscapes or structures, these
products are designed for power distribution, telecommunications, utility
companies, and landscape and irrigation contractors. The products Toro is
acquiring, which does not include Astec's Trencor product line, are
manufactured at the Astec Underground facility in Loudon, Tennessee.
The Toro Company
Acquires Greens Roller Line
Dec 09, 2011
The Toro Company announced that it has acquired the Graden greens roller
product line, which includes the GSR 1200 greens roller. The acquisition
provides entry into a new product category and broadens Toro's offering to golf
customers worldwide. Terms of the deal were not disclosed.
The Toro Company
Issues FY 2012 Guidance In Line With Analysts' Estimates; Issues Q1 2012 EPS
Guidance In Line With Analysts' Estimates
Dec 06, 2011
The Toro Company announced that, fiscal 2012 it expects net earnings to be
about $4.15 per share (EPS) on a revenue increase of about 5%. For the first
quarter of 2012, it expects EPS of about $0.58 per share. The Company reported
revenues of $1.884 billion for fiscal 2011. According to I/B/E/S Estimates,
analysts were expecting the Company to report EPS of $4.15 on revenues of
$1.960 billion for fiscal 2012; and EPS of $0.61 for the first quarter of 2012.
The Toro Company
Increases Regular Quarterly Dividend
Nov 30, 2011
The Toro Company announced that it has declared a regular quarterly cash
dividend of $0.22 per share, an increase from its previous quarterly dividend
rate of $0.20 per share. This dividend is payable on January 9, 2012 to
shareholders of record on December 16, 2011
News
Articles
|
Toro
Introduces the Pro Sneak 360 Vibratory Plow |
14-Nov-2012 |
|
-GE Capital
renews consumer financing pact with Toro |
09-Nov-2012 |
|
United
States : GE Capital and The Toro Company Renew Exclusive Consumer Financing
Program |
08-Nov-2012 |
|
-Sheffield
Financial inks endorsement deal with The Toro Company |
02-Nov-2012 |
|
Yanmar
America Joins Forces with The Toro Company |
31-Oct-2012 |
|
Yanmar
America Partners with The Toro Company |
29-Oct-2012 |
|
Toro
Unveils 'Green Spaces Make Great Places' Grant Program |
26-Oct-2012 |
|
Toro
Introduces 'Green Spaces Make Great Places' Grant Program |
18-Oct-2012 |
|
Toro
Company announces quarterly dividend of USD0.11 per share |
19-Sep-2012 |
|
The Toro
Company Bolsters Board |
02-Sep-2012 |
Annual
Income Statement
Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)
|
|
31-Oct-2011 |
31-Oct-2010 |
31-Oct-2009 |
31-Oct-2008 |
31-Oct-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate
(Period Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Net Sales |
1,884.0 |
1,690.4 |
1,523.4 |
1,878.2 |
1,876.9 |
|
Revenue |
1,884.0 |
1,690.4 |
1,523.4 |
1,878.2 |
1,876.9 |
|
Total Revenue |
1,884.0 |
1,690.4 |
1,523.4 |
1,878.2 |
1,876.9 |
|
|
|
|
|
|
|
|
Cost of Revenue |
1,247.3 |
1,114.0 |
1,012.5 |
1,225.5 |
1,198.5 |
|
Cost of Revenue, Total |
1,247.3 |
1,114.0 |
1,012.5 |
1,225.5 |
1,198.5 |
|
Gross Profit |
636.6 |
576.4 |
511.0 |
652.7 |
678.4 |
|
|
|
|
|
|
|
|
Selling/General/Administrative Expense |
452.2 |
425.1 |
395.8 |
454.3 |
454.7 |
|
Total Selling/General/Administrative Expenses |
452.2 |
425.1 |
395.8 |
454.3 |
454.7 |
|
Litigation |
-0.5 |
-0.1 |
6.8 |
-1.0 |
0.1 |
|
Unusual Expense (Income) |
-0.5 |
-0.1 |
6.8 |
-1.0 |
0.1 |
|
Total Operating Expense |
1,698.9 |
1,539.1 |
1,415.1 |
1,678.8 |
1,653.3 |
|
|
|
|
|
|
|
|
Operating Income |
185.0 |
151.3 |
108.4 |
199.4 |
223.6 |
|
|
|
|
|
|
|
|
Interest Expense -
Non-Operating |
-17.0 |
-17.1 |
-17.6 |
-19.3 |
-19.4 |
|
Interest Expense, Net Non-Operating |
-17.0 |
-17.1 |
-17.6 |
-19.3 |
-19.4 |
|
Interest Income -
Non-Operating |
1.1 |
1.1 |
0.9 |
1.9 |
3.1 |
|
Investment Income -
Non-Operating |
3.9 |
3.4 |
0.5 |
-5.9 |
1.0 |
|
Interest/Investment Income - Non-Operating |
5.0 |
4.5 |
1.4 |
-4.0 |
4.1 |
|
Interest Income (Expense) - Net Non-Operating Total |
-12.0 |
-12.6 |
-16.2 |
-23.4 |
-15.3 |
|
Gain (Loss) on Sale of Assets |
- |
- |
0.0 |
0.1 |
0.0 |
|
Other Non-Operating Income (Expense) |
1.8 |
2.6 |
3.6 |
5.1 |
5.0 |
|
Other, Net |
1.8 |
2.6 |
3.6 |
5.1 |
5.0 |
|
Income Before Tax |
174.8 |
141.3 |
95.8 |
181.3 |
213.2 |
|
|
|
|
|
|
|
|
Total Income Tax |
57.2 |
48.0 |
33.0 |
61.6 |
70.8 |
|
Income After Tax |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Net Income Before Extraord Items |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
Net Income |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Income Available to Common Excl Extraord Items |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Income Available to Common Incl Extraord Items |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Basic/Primary Weighted Average Shares |
62.5 |
66.0 |
71.6 |
75.5 |
81.4 |
|
Basic EPS Excl Extraord Items |
1.88 |
1.41 |
0.88 |
1.59 |
1.75 |
|
Basic/Primary EPS Incl Extraord Items |
1.88 |
1.41 |
0.88 |
1.59 |
1.75 |
|
Diluted Net Income |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
Diluted Weighted Average Shares |
63.6 |
66.9 |
72.5 |
77.2 |
83.7 |
|
Diluted EPS Excl Extraord Items |
1.85 |
1.39 |
0.87 |
1.55 |
1.70 |
|
Diluted EPS Incl Extraord Items |
1.85 |
1.39 |
0.87 |
1.55 |
1.70 |
|
Dividends per Share - Common Stock Primary Issue |
0.40 |
0.36 |
0.30 |
0.30 |
0.24 |
|
Gross Dividends - Common Stock |
25.0 |
23.7 |
21.4 |
22.6 |
19.5 |
|
Interest Expense, Supplemental |
17.0 |
17.1 |
17.6 |
19.3 |
19.4 |
|
Interest Capitalized, Supplemental |
-0.2 |
-0.1 |
-0.1 |
-0.4 |
-0.8 |
|
Depreciation, Supplemental |
43.5 |
42.1 |
42.0 |
46.1 |
40.5 |
|
Total Special Items |
-0.4 |
0.3 |
7.9 |
2.7 |
0.2 |
|
Normalized Income Before Tax |
174.4 |
141.6 |
103.7 |
184.0 |
213.4 |
|
|
|
|
|
|
|
|
Effect of Special Items on Income Taxes |
-0.1 |
0.1 |
2.7 |
0.9 |
0.1 |
|
Inc Tax Ex Impact of Sp Items |
57.0 |
48.1 |
35.7 |
62.6 |
70.9 |
|
Normalized Income After Tax |
117.4 |
93.4 |
68.0 |
121.4 |
142.6 |
|
|
|
|
|
|
|
|
Normalized Inc. Avail to Com. |
117.4 |
93.4 |
68.0 |
121.4 |
142.6 |
|
|
|
|
|
|
|
|
Basic Normalized EPS |
1.88 |
1.42 |
0.95 |
1.61 |
1.75 |
|
Diluted Normalized EPS |
1.85 |
1.40 |
0.94 |
1.57 |
1.70 |
|
Amort of Intangibles, Supplemental |
5.0 |
2.9 |
2.5 |
1.9 |
1.2 |
|
Rental Expenses |
21.8 |
19.4 |
20.1 |
20.4 |
19.7 |
|
Advertising Expense, Supplemental |
49.4 |
39.3 |
33.5 |
43.1 |
39.9 |
|
Research & Development Exp, Supplemental |
57.0 |
53.3 |
52.7 |
63.0 |
59.9 |
|
Reported Gross Profit |
636.6 |
576.4 |
511.0 |
- |
678.4 |
|
Reported Operating Profit |
184.5 |
151.3 |
115.2 |
- |
223.6 |
|
Normalized EBIT |
184.6 |
151.6 |
116.3 |
202.3 |
223.8 |
|
Normalized EBITDA |
233.1 |
196.6 |
160.8 |
250.3 |
265.5 |
|
Current Tax - Domestic |
47.9 |
34.6 |
24.0 |
57.2 |
59.9 |
|
Current Tax - Foreign |
7.1 |
4.4 |
5.0 |
1.5 |
5.8 |
|
Current Tax - Local |
4.0 |
2.9 |
2.0 |
4.5 |
5.5 |
|
Current Tax - Total |
59.0 |
41.9 |
30.9 |
63.2 |
71.3 |
|
Deferred Tax - Domestic |
0.0 |
5.3 |
1.9 |
-3.2 |
1.8 |
|
Deferred Tax - Foreign |
-1.6 |
0.6 |
0.2 |
1.3 |
-2.4 |
|
Deferred Tax - Local |
-0.2 |
0.2 |
-0.1 |
0.4 |
0.1 |
|
Deferred Tax - Total |
-1.8 |
6.1 |
2.1 |
-1.5 |
-0.5 |
|
Income Tax - Total |
57.2 |
48.0 |
33.0 |
61.6 |
70.8 |
|
Prior Service Cost - Domestic |
-0.1 |
-0.1 |
0.1 |
- |
- |
|
Actuarial Gains and Losses - Domestic |
0.3 |
-0.4 |
0.6 |
- |
- |
|
Curtailments & Settlements - Domestic |
- |
-0.6 |
- |
- |
- |
|
Other Pension, Net - Domestic |
1.7 |
-0.1 |
4.2 |
1.8 |
1.0 |
|
Domestic Pension Plan Expense |
1.9 |
-1.1 |
4.9 |
1.8 |
1.0 |
|
Interest Cost - Post-Retirement |
- |
- |
0.7 |
0.5 |
0.5 |
|
Service Cost - Post-Retirement |
- |
- |
0.2 |
0.4 |
0.4 |
|
Prior Service Cost - Post-Retirement |
0.2 |
0.1 |
-0.1 |
-0.2 |
-0.2 |
|
Actuarial Gains and Losses - Post-Retir. |
-0.3 |
-0.1 |
0.1 |
0.2 |
0.2 |
|
Curtailments & Settlements - Post-Retir. |
- |
0.0 |
0.0 |
0.2 |
- |
|
Other Post-Retirement, Net |
0.3 |
0.7 |
-0.7 |
- |
- |
|
Post-Retirement Plan Expense |
0.1 |
0.7 |
0.2 |
1.1 |
0.9 |
|
Defined Contribution Expense - Domestic |
12.7 |
15.5 |
15.2 |
16.2 |
17.2 |
|
Total Pension Expense |
14.7 |
15.1 |
20.4 |
19.1 |
19.0 |
|
Discount Rate - Post-Retirement |
- |
- |
7.75% |
5.75% |
5.75% |
|
Compensation Rate - Post-Retirement |
- |
- |
8.50% |
9.00% |
9.00% |
|
Total Plan Interest Cost |
- |
- |
0.7 |
0.5 |
0.5 |
|
Total Plan Service Cost |
- |
- |
0.2 |
0.4 |
0.4 |
|
Total Plan Other Expense |
2.0 |
0.6 |
3.5 |
1.8 |
1.0 |
Annual
Balance Sheet
Financials in: USD (mil)
|
|
31-Oct-2011 |
31-Oct-2010 |
31-Oct-2009 |
31-Oct-2008 |
31-Oct-2007 |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Cash & Equivalents |
80.9 |
177.4 |
187.8 |
99.4 |
62.0 |
|
Cash and Short Term Investments |
80.9 |
177.4 |
187.8 |
99.4 |
62.0 |
|
Accounts
Receivable - Trade, Gross |
144.4 |
132.2 |
138.7 |
248.7 |
277.2 |
|
Provision
for Doubtful Accounts |
-2.0 |
-3.8 |
-4.1 |
-2.6 |
-3.6 |
|
Trade Accounts Receivable - Net |
142.4 |
128.4 |
134.6 |
246.1 |
273.5 |
|
Other Receivables |
5.7 |
14.5 |
9.1 |
10.2 |
9.6 |
|
Total Receivables, Net |
148.1 |
142.9 |
143.7 |
256.3 |
283.1 |
|
Inventories - Finished Goods |
189.9 |
184.0 |
169.7 |
194.1 |
243.0 |
|
Inventories - Raw Materials |
94.2 |
66.2 |
56.7 |
63.3 |
68.4 |
|
LIFO Reserve |
-61.0 |
-55.7 |
-50.1 |
-50.3 |
-60.1 |
|
Total Inventory |
223.0 |
194.4 |
176.3 |
207.1 |
251.3 |
|
Prepaid Expenses |
18.3 |
10.8 |
14.9 |
27.5 |
10.7 |
|
Deferred Income Tax - Current
Asset |
62.5 |
59.5 |
59.5 |
53.8 |
57.8 |
|
Other Current Assets, Total |
62.5 |
59.5 |
59.5 |
53.8 |
57.8 |
|
Total Current Assets |
532.9 |
585.0 |
582.1 |
643.9 |
664.9 |
|
|
|
|
|
|
|
|
Buildings |
129.3 |
115.5 |
114.9 |
111.8 |
111.8 |
|
Land/Improvements |
26.8 |
24.7 |
22.7 |
22.7 |
22.7 |
|
Machinery/Equipment |
498.6 |
453.9 |
414.1 |
384.0 |
442.6 |
|
Property/Plant/Equipment - Gross |
654.7 |
594.1 |
551.7 |
518.5 |
577.1 |
|
Accumulated Depreciation |
-463.5 |
-420.7 |
-385.0 |
-349.7 |
-406.4 |
|
Property/Plant/Equipment - Net |
191.1 |
173.4 |
166.7 |
168.9 |
170.7 |
|
Goodwill, Net |
92.0 |
86.4 |
86.4 |
86.2 |
86.2 |
|
Intangibles - Gross |
56.7 |
39.3 |
36.9 |
30.4 |
21.7 |
|
Accumulated Intangible
Amortization |
-21.1 |
-16.3 |
-13.6 |
-11.6 |
-9.9 |
|
Intangibles, Net |
35.5 |
23.0 |
23.3 |
18.8 |
14.7 |
|
Deferred Income Tax - Long Term
Asset |
- |
0.8 |
3.6 |
6.5 |
5.2 |
|
Other Long Term Assets |
19.1 |
17.0 |
10.5 |
7.9 |
9.2 |
|
Other Long Term Assets, Total |
19.1 |
17.9 |
14.1 |
14.4 |
14.3 |
|
Total Assets |
870.7 |
885.6 |
872.7 |
932.3 |
950.8 |
|
|
|
|
|
|
|
|
Accounts Payable |
118.0 |
125.1 |
91.1 |
93.0 |
91.0 |
|
Accrued Expenses |
236.5 |
232.5 |
217.0 |
221.1 |
246.4 |
|
Notes Payable/Short Term Debt |
0.0 |
1.0 |
4.5 |
2.3 |
0.4 |
|
Current Portion - Long Term Debt/Capital Leases |
2.0 |
2.0 |
3.8 |
3.3 |
1.6 |
|
Income Taxes Payable |
2.5 |
7.6 |
0.4 |
4.8 |
2.1 |
|
Other Current liabilities, Total |
2.5 |
7.6 |
0.4 |
4.8 |
2.1 |
|
Total Current Liabilities |
359.1 |
368.3 |
316.8 |
324.5 |
341.5 |
|
|
|
|
|
|
|
|
Long Term Debt |
225.2 |
223.6 |
225.0 |
227.5 |
227.6 |
|
Total Long Term Debt |
225.2 |
223.6 |
225.0 |
227.5 |
227.6 |
|
Total Debt |
227.2 |
226.6 |
233.3 |
233.1 |
229.6 |
|
|
|
|
|
|
|
|
Deferred Income Tax - LT Liability |
1.4 |
0.0 |
- |
- |
- |
|
Deferred Income Tax |
1.4 |
0.0 |
- |
- |
- |
|
Other Long Term Liabilities |
18.3 |
18.0 |
15.6 |
15.6 |
11.3 |
|
Other Liabilities, Total |
18.3 |
18.0 |
15.6 |
15.6 |
11.3 |
|
Total Liabilities |
603.9 |
609.8 |
557.5 |
567.6 |
580.4 |
|
|
|
|
|
|
|
|
Common Stock |
29.6 |
31.4 |
33.4 |
35.5 |
38.0 |
|
Common Stock |
29.6 |
31.4 |
33.4 |
35.5 |
38.0 |
|
Retained Earnings (Accumulated Deficit) |
244.0 |
253.5 |
291.2 |
337.7 |
335.4 |
|
Unrealized Gain (Loss) |
-0.1 |
-2.8 |
-3.1 |
- |
- |
|
Translation Adjustment |
-2.9 |
-3.0 |
-2.4 |
- |
- |
|
Minimum Pension Liability
Adjustment |
-3.8 |
-3.3 |
-3.9 |
- |
- |
|
Other Comprehensive Income |
- |
- |
- |
-8.5 |
-2.9 |
|
Other Equity, Total |
-6.7 |
-6.3 |
-6.3 |
-8.5 |
-2.9 |
|
Total Equity |
266.8 |
275.8 |
315.2 |
364.7 |
370.4 |
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders’ Equity |
870.7 |
885.6 |
872.7 |
932.3 |
950.8 |
|
|
|
|
|
|
|
|
Shares Outstanding - Common Stock
Primary Issue |
59.2 |
62.8 |
66.7 |
71.0 |
75.9 |
|
Total Common Shares Outstanding |
59.2 |
62.8 |
66.7 |
71.0 |
75.9 |
|
Treasury Shares - Common Stock Primary Issue |
48.9 |
45.3 |
41.3 |
37.1 |
32.2 |
|
Employees |
4,618 |
4,609 |
4,414 |
4,966 |
5,273 |
|
Number of Common Shareholders |
4,035 |
4,074 |
4,255 |
4,309 |
4,359 |
|
Accumulated Intangible Amort, Suppl. |
21.1 |
16.3 |
13.6 |
11.6 |
9.9 |
|
Deferred Revenue - Long Term |
10.6 |
10.9 |
8.5 |
9.4 |
10.1 |
|
Total Long Term Debt, Supplemental |
228.7 |
227.2 |
230.5 |
232.6 |
231.0 |
|
Long Term Debt Maturing within 1 Year |
2.0 |
2.0 |
3.8 |
3.3 |
1.6 |
|
Long Term Debt Maturing in Year 2 |
1.8 |
0.2 |
1.8 |
3.3 |
1.9 |
|
Long Term Debt Maturing in Year 3 |
0.0 |
0.0 |
0.0 |
1.0 |
2.0 |
|
Long Term Debt Maturing in Year 4 |
0.0 |
0.0 |
0.0 |
0.0 |
0.5 |
|
Long Term Debt Maturing in Year 5 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Long Term Debt Maturing in 2-3 Years |
1.8 |
0.2 |
1.8 |
4.3 |
3.9 |
|
Long Term Debt Maturing in 4-5 Years |
0.0 |
0.0 |
0.0 |
0.0 |
0.5 |
|
Long Term Debt Matur. in Year 6 & Beyond |
225.0 |
225.0 |
225.0 |
225.0 |
225.0 |
|
Total Operating Leases, Supplemental |
57.1 |
55.5 |
41.9 |
44.9 |
27.8 |
|
Operating Lease Payments Due in Year 1 |
13.6 |
13.0 |
13.3 |
13.2 |
13.7 |
|
Operating Lease Payments Due in Year 2 |
10.8 |
9.8 |
8.8 |
9.8 |
7.7 |
|
Operating Lease Payments Due in Year 3 |
7.4 |
8.0 |
6.6 |
6.6 |
3.9 |
|
Operating Lease Payments Due in Year 4 |
6.1 |
5.0 |
5.5 |
5.2 |
1.9 |
|
Operating Lease Payments Due in Year 5 |
3.8 |
4.1 |
3.2 |
4.8 |
0.4 |
|
Operating Lease Pymts. Due in 2-3 Years |
18.2 |
17.9 |
15.3 |
16.4 |
11.6 |
|
Operating Lease Pymts. Due in 4-5 Years |
9.9 |
9.1 |
8.8 |
10.0 |
2.4 |
|
Oper. Lse. Pymts. Due in Year 6 & Beyond |
15.4 |
15.5 |
4.5 |
5.3 |
0.1 |
|
Pension Obligation - Domestic |
41.0 |
38.7 |
39.1 |
24.3 |
31.4 |
|
Post-Retirement Obligation |
- |
- |
8.6 |
9.7 |
9.3 |
|
Plan Assets - Domestic |
30.1 |
28.7 |
23.5 |
23.0 |
28.6 |
|
Funded Status - Domestic |
-10.8 |
-10.0 |
-15.6 |
-1.3 |
-2.9 |
|
Funded Status - Post-Retirement |
- |
- |
-8.6 |
-9.7 |
-9.3 |
|
Accumulated Obligation - Domestic |
38.4 |
36.7 |
- |
- |
- |
|
Accumulated Obligation - Post-Retirement |
- |
- |
27.5 |
20.8 |
27.3 |
|
Total Funded Status |
-10.8 |
-10.0 |
-24.2 |
-11.0 |
-12.1 |
|
Discount Rate - Post-Retirement |
- |
- |
7.75% |
5.75% |
5.75% |
|
Compensation Rate - Post-Retirement |
- |
- |
8.50% |
9.00% |
9.00% |
|
Accrued Liabilities - Domestic |
-4.5 |
-4.3 |
- |
- |
- |
|
Net Post-Retirement Assets |
- |
- |
-8.6 |
-9.7 |
-9.3 |
|
Net Assets Recognized on Balance Sheet |
-4.5 |
-4.3 |
-8.6 |
-9.7 |
-9.3 |
|
Total Plan Obligations |
41.0 |
38.7 |
47.7 |
34.0 |
40.7 |
|
Total Plan Assets |
30.1 |
28.7 |
23.5 |
23.0 |
28.6 |
Annual
Cash Flows
Financials in: USD (mil)
|
|
31-Oct-2011 |
31-Oct-2010 |
31-Oct-2009 |
31-Oct-2008 |
31-Oct-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate
(Period Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Net Income/Starting Line |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
Depreciation |
48.5 |
45.0 |
44.5 |
48.2 |
42.1 |
|
Depreciation/Depletion |
48.5 |
45.0 |
44.5 |
48.2 |
42.1 |
|
Deferred Taxes |
-2.0 |
2.9 |
4.7 |
-5.5 |
-0.5 |
|
Unusual Items |
-0.1 |
-0.1 |
0.0 |
-0.3 |
-0.2 |
|
Equity in Net Earnings (Loss) |
-5.7 |
-2.6 |
0.1 |
0.9 |
0.4 |
|
Other Non-Cash Items |
8.5 |
6.4 |
4.1 |
5.7 |
7.3 |
|
Non-Cash Items |
2.7 |
3.8 |
4.2 |
6.2 |
7.5 |
|
Accounts Receivable |
-2.9 |
-0.1 |
126.7 |
14.8 |
9.0 |
|
Inventories |
-25.7 |
-9.9 |
40.0 |
29.9 |
-1.9 |
|
Prepaid Expenses |
-7.1 |
3.1 |
-4.4 |
0.7 |
-1.0 |
|
Payable/Accrued |
-17.3 |
55.5 |
-27.2 |
1.7 |
-14.0 |
|
Changes in Working Capital |
-53.0 |
48.6 |
135.2 |
47.1 |
-7.9 |
|
Cash from Operating Activities |
113.9 |
193.5 |
251.5 |
215.7 |
183.6 |
|
|
|
|
|
|
|
|
Purchase of Fixed Assets |
-57.4 |
-48.7 |
-37.9 |
-48.9 |
-42.2 |
|
Capital Expenditures |
-57.4 |
-48.7 |
-37.9 |
-48.9 |
-42.2 |
|
Acquisition of Business |
-15.2 |
-9.7 |
-6.4 |
-4.4 |
-9.9 |
|
Sale of Business |
- |
0.0 |
0.0 |
1.0 |
0.0 |
|
Sale of Fixed Assets |
0.7 |
0.6 |
0.2 |
1.0 |
0.3 |
|
Investment, Net |
3.0 |
-3.7 |
-3.8 |
-0.3 |
0.0 |
|
Other Investing Cash Flow |
-0.4 |
0.6 |
2.0 |
0.0 |
1.5 |
|
Other Investing Cash Flow Items, Total |
-11.8 |
-12.1 |
-8.0 |
-2.6 |
-8.1 |
|
Cash from Investing Activities |
-69.3 |
-60.8 |
-46.0 |
-51.6 |
-50.3 |
|
|
|
|
|
|
|
|
Other Financing Cash Flow |
3.0 |
3.4 |
7.4 |
3.5 |
13.8 |
|
Financing Cash Flow Items |
3.0 |
3.4 |
7.4 |
3.5 |
13.8 |
|
Cash Dividends Paid - Common |
-25.0 |
-23.7 |
-21.4 |
-22.6 |
-19.5 |
|
Total Cash Dividends Paid |
-25.0 |
-23.7 |
-21.4 |
-22.6 |
-19.5 |
|
Repurchase/Retirement
of Common |
-130.0 |
-135.8 |
-115.3 |
-110.4 |
-182.8 |
|
Common Stock, Net |
-130.0 |
-135.8 |
-115.3 |
-110.4 |
-182.8 |
|
Options Exercised |
14.5 |
16.7 |
13.7 |
4.0 |
13.3 |
|
Issuance (Retirement) of Stock, Net |
-115.5 |
-119.1 |
-101.6 |
-106.4 |
-169.6 |
|
Short Term Debt, Net |
-0.8 |
0.8 |
-2.3 |
2.9 |
0.0 |
|
Long Term Debt Issued |
- |
- |
0.0 |
0.0 |
121.5 |
|
Long Term Debt
Reduction |
-1.9 |
-3.6 |
-3.4 |
-1.5 |
-75.0 |
|
Long Term Debt, Net |
-1.9 |
-3.6 |
-3.4 |
-1.5 |
46.5 |
|
Issuance (Retirement) of Debt, Net |
-2.6 |
-2.9 |
-5.7 |
1.4 |
46.5 |
|
Cash from Financing Activities |
-140.1 |
-142.3 |
-121.3 |
-124.1 |
-128.8 |
|
|
|
|
|
|
|
|
Foreign Exchange Effects |
-1.0 |
-0.8 |
4.2 |
-2.8 |
2.0 |
|
Net Change in Cash |
-96.5 |
-10.4 |
88.4 |
37.3 |
6.5 |
|
|
|
|
|
|
|
|
Net Cash - Beginning Balance |
177.4 |
187.8 |
99.4 |
62.0 |
55.5 |
|
Net Cash - Ending Balance |
80.9 |
177.4 |
187.8 |
99.4 |
62.0 |
|
Cash Interest Paid |
17.1 |
17.3 |
17.7 |
19.8 |
18.2 |
|
Cash Taxes Paid |
60.3 |
28.6 |
29.8 |
55.9 |
61.3 |
Annual
Income Statement
Financials in: USD (mil)
Except for share items (millions) and per share items
(actual units)
|
|
31-Oct-2011 |
31-Oct-2010 |
31-Oct-2009 |
31-Oct-2008 |
31-Oct-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate
(Period Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Net Sales |
1,884.0 |
1,690.4 |
1,523.4 |
1,878.2 |
1,876.9 |
|
Total Revenue |
1,884.0 |
1,690.4 |
1,523.4 |
1,878.2 |
1,876.9 |
|
|
|
|
|
|
|
|
Cost of Sales |
1,247.3 |
1,114.0 |
1,012.5 |
1,225.5 |
1,198.5 |
|
Selling, General & Administrative |
452.2 |
425.1 |
395.8 |
454.3 |
454.7 |
|
Litigation(Settlement)recovery |
-0.5 |
-0.1 |
6.8 |
-1.0 |
0.1 |
|
Total Operating Expense |
1,698.9 |
1,539.1 |
1,415.1 |
1,678.8 |
1,653.3 |
|
|
|
|
|
|
|
|
Interest Expense |
-17.0 |
-17.1 |
-17.6 |
-19.3 |
-19.4 |
|
Interest income |
1.1 |
1.1 |
0.9 |
1.9 |
3.1 |
|
Exchange rate losses |
-1.8 |
0.8 |
0.6 |
-5.0 |
1.3 |
|
Equity losses from an investment |
5.7 |
2.6 |
-0.1 |
-0.9 |
-0.4 |
|
Gain on sale of a business |
- |
- |
0.0 |
0.1 |
0.0 |
|
Other income, net |
1.8 |
2.6 |
3.6 |
5.1 |
5.0 |
|
Net Income Before Taxes |
174.8 |
141.3 |
95.8 |
181.3 |
213.2 |
|
|
|
|
|
|
|
|
Provision for Income Taxes |
57.2 |
48.0 |
33.0 |
61.6 |
70.8 |
|
Net Income After Taxes |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Net Income Before Extra. Items |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
Net Income |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Income Available to Com Excl ExtraOrd |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Income Available to Com Incl ExtraOrd |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
|
|
|
|
|
|
|
Basic Weighted Average Shares |
62.5 |
66.0 |
71.6 |
75.5 |
81.4 |
|
Basic EPS Excluding ExtraOrdinary Items |
1.88 |
1.41 |
0.88 |
1.59 |
1.75 |
|
Basic EPS Including ExtraOrdinary Item |
1.88 |
1.41 |
0.88 |
1.59 |
1.75 |
|
Diluted Net Income |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
Diluted Weighted Average Shares |
63.6 |
66.9 |
72.5 |
77.2 |
83.7 |
|
Diluted EPS Excluding ExtraOrd Items |
1.85 |
1.39 |
0.87 |
1.55 |
1.70 |
|
Diluted EPS Including ExtraOrd Items |
1.85 |
1.39 |
0.87 |
1.55 |
1.70 |
|
DPS-Common Stock |
0.40 |
0.36 |
0.30 |
0.30 |
0.24 |
|
Gross Dividends - Common Stock |
25.0 |
23.7 |
21.4 |
22.6 |
19.5 |
|
Normalized Income Before Taxes |
174.4 |
141.6 |
103.7 |
184.0 |
213.4 |
|
|
|
|
|
|
|
|
Inc Tax Ex Impact of Sp Items |
57.0 |
48.1 |
35.7 |
62.6 |
70.9 |
|
Normalized Income After Taxes |
117.4 |
93.4 |
68.0 |
121.4 |
142.6 |
|
|
|
|
|
|
|
|
Normalized Inc. Avail to Com. |
117.4 |
93.4 |
68.0 |
121.4 |
142.6 |
|
|
|
|
|
|
|
|
Basic Normalized EPS |
1.88 |
1.42 |
0.95 |
1.61 |
1.75 |
|
Diluted Normalized EPS |
1.85 |
1.40 |
0.94 |
1.57 |
1.70 |
|
Depreciation |
43.5 |
42.1 |
42.0 |
46.1 |
40.5 |
|
Amortization of Intangibles |
5.0 |
2.9 |
2.5 |
1.9 |
1.2 |
|
Advertising Expenses |
49.4 |
39.3 |
33.5 |
43.1 |
39.9 |
|
Research and Development |
57.0 |
53.3 |
52.7 |
63.0 |
59.9 |
|
Interest Expense |
17.0 |
17.1 |
17.6 |
19.3 |
19.4 |
|
Rental Expense |
21.8 |
19.4 |
20.1 |
20.4 |
19.7 |
|
Interest Capitalized |
-0.2 |
-0.1 |
-0.1 |
-0.4 |
-0.8 |
|
Current - Federal |
47.9 |
34.6 |
24.0 |
57.2 |
59.9 |
|
Current - State |
4.0 |
2.9 |
2.0 |
4.5 |
5.5 |
|
Current - Non U.S. |
7.1 |
4.4 |
5.0 |
1.5 |
5.8 |
|
Current Tax - Total |
59.0 |
41.9 |
30.9 |
63.2 |
71.3 |
|
Deferred - Federal |
0.0 |
5.3 |
1.9 |
-3.2 |
1.8 |
|
Deferred - State |
-0.2 |
0.2 |
-0.1 |
0.4 |
0.1 |
|
Deferred - Non U.S. |
-1.6 |
0.6 |
0.2 |
1.3 |
-2.4 |
|
Deferred Tax - Total |
-1.8 |
6.1 |
2.1 |
-1.5 |
-0.5 |
|
Income Tax - Total |
57.2 |
48.0 |
33.0 |
61.6 |
70.8 |
|
Gross profit |
636.6 |
576.4 |
511.0 |
- |
678.4 |
|
Earnings from operations |
184.5 |
151.3 |
115.2 |
- |
223.6 |
|
Net (gain) loss |
0.2 |
-0.4 |
2.5 |
- |
- |
|
Curtailment gain |
- |
-0.6 |
- |
- |
- |
|
Amortization of unrecognized prior servi |
-0.1 |
-0.1 |
0.1 |
- |
- |
|
Amortization of unrecognized actuarial g |
0.3 |
-0.4 |
0.6 |
- |
- |
|
Net Periodic Benefit Cost - Pension |
1.5 |
0.3 |
1.6 |
1.8 |
1.0 |
|
Domestic Pension Plan Expense |
1.9 |
-1.1 |
4.9 |
1.8 |
1.0 |
|
Net (gain) loss - Post-Retirement |
0.3 |
0.7 |
-0.7 |
- |
- |
|
Curtailment gain - Post-Retirement |
- |
0.0 |
- |
- |
- |
|
Amortization of unrecognized prior servi |
0.2 |
0.1 |
0.1 |
- |
- |
|
Amortization of unrecognized actuarial g |
-0.3 |
-0.1 |
-0.1 |
- |
- |
|
Service Cost - Post-Retirement |
- |
- |
0.2 |
0.4 |
0.4 |
|
Interest Cost - Post-Retirement |
- |
- |
0.7 |
0.5 |
0.5 |
|
Curtailment-Post-Retirement |
- |
- |
0.0 |
0.2 |
- |
|
Prior Service Cost - Post-Retirement |
- |
- |
-0.2 |
-0.2 |
-0.2 |
|
Amortization of Losses - Post-Retirement |
- |
- |
0.2 |
0.2 |
0.2 |
|
Post-Retirement Plan Expense |
0.1 |
0.7 |
0.2 |
1.1 |
0.9 |
|
Investment, Savings & ESOP |
12.7 |
15.5 |
15.2 |
16.2 |
17.2 |
|
Total Pension Expense |
14.7 |
15.1 |
20.4 |
19.1 |
19.0 |
|
Discount Rate - Post-Retirement |
- |
- |
7.75% |
5.75% |
5.75% |
|
Compensation Rate - Post-Retirement |
- |
- |
8.50% |
9.00% |
9.00% |
Annual
Balance Sheet
|
|
31-Oct-2011 |
31-Oct-2010 |
31-Oct-2009 |
31-Oct-2008 |
31-Oct-2007 |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Cash & Equivalents |
80.9 |
177.4 |
187.8 |
99.4 |
62.0 |
|
Other Receivables |
5.7 |
14.5 |
9.1 |
10.2 |
9.6 |
|
Accounts Receivable |
144.4 |
132.2 |
138.7 |
248.7 |
277.2 |
|
Doubtful Account |
-2.0 |
-3.8 |
-4.1 |
-2.6 |
-3.6 |
|
Raw Materials and Work in Progress |
94.2 |
66.2 |
56.7 |
63.3 |
68.4 |
|
Finished Goods and Service Parts |
189.9 |
184.0 |
169.7 |
194.1 |
243.0 |
|
LIFO Reserve |
-61.0 |
-55.7 |
-50.1 |
-50.3 |
-42.9 |
|
Inventory Reserve |
- |
- |
- |
- |
-17.2 |
|
Prepaid Expenses |
18.3 |
10.8 |
14.9 |
27.5 |
10.7 |
|
Deferred Taxes |
62.5 |
59.5 |
59.5 |
53.8 |
57.8 |
|
Total Current Assets |
532.9 |
585.0 |
582.1 |
643.9 |
664.9 |
|
|
|
|
|
|
|
|
Land & Improvements |
26.8 |
24.7 |
22.7 |
22.7 |
22.7 |
|
Buildings & Leasehold Improvements |
129.3 |
115.5 |
114.9 |
111.8 |
111.8 |
|
Equipment |
434.8 |
396.2 |
358.6 |
331.1 |
394.9 |
|
Computer Hardware and Software |
63.8 |
57.7 |
55.5 |
53.0 |
47.7 |
|
Depreciation |
-463.5 |
-420.7 |
-385.0 |
-349.7 |
-406.4 |
|
Other Assets |
19.1 |
17.0 |
10.5 |
7.9 |
9.2 |
|
Patent |
9.4 |
8.7 |
8.7 |
7.7 |
6.6 |
|
Non Compete Agreement |
6.3 |
3.0 |
2.8 |
2.4 |
1.4 |
|
Customer Related |
8.2 |
7.5 |
6.5 |
6.3 |
6.7 |
|
Developed Technology |
25.2 |
14.0 |
12.8 |
7.6 |
3.5 |
|
Trade name |
1.5 |
- |
- |
- |
- |
|
Other Intangibles Gross |
0.8 |
0.8 |
0.8 |
0.8 |
0.8 |
|
Intangible Amortization |
-21.1 |
-16.3 |
-13.6 |
-11.6 |
-9.9 |
|
Non Amortizable Intangible Assets |
5.3 |
5.3 |
5.3 |
5.6 |
2.8 |
|
Other Intangible |
- |
- |
- |
- |
2.9 |
|
Deferred Taxes |
- |
0.8 |
3.6 |
6.5 |
5.2 |
|
Goodwill |
92.0 |
86.4 |
86.4 |
86.2 |
86.2 |
|
Total Assets |
870.7 |
885.6 |
872.7 |
932.3 |
950.8 |
|
|
|
|
|
|
|
|
Current Portion of LT Debt |
2.0 |
2.0 |
3.8 |
3.3 |
1.6 |
|
Short Term Debt |
0.0 |
1.0 |
4.5 |
2.3 |
0.4 |
|
Accounts Payable |
118.0 |
125.1 |
91.1 |
93.0 |
91.0 |
|
Accrued Warranty |
62.7 |
56.9 |
54.3 |
58.8 |
62.0 |
|
Accd. Adv./Mrktg |
47.2 |
43.1 |
45.3 |
48.4 |
53.8 |
|
Insurance |
19.4 |
24.9 |
18.9 |
15.6 |
- |
|
Accrued Comp. |
53.7 |
58.7 |
47.2 |
53.9 |
61.5 |
|
Accrued liabilities |
- |
- |
- |
- |
69.2 |
|
Other |
53.6 |
48.9 |
51.3 |
44.4 |
- |
|
Income Taxes |
2.5 |
7.6 |
0.4 |
4.8 |
2.1 |
|
Total Current Liabilities |
359.1 |
368.3 |
316.8 |
324.5 |
341.5 |
|
|
|
|
|
|
|
|
Long Term Debt |
225.2 |
223.6 |
225.0 |
227.5 |
227.6 |
|
Total Long Term Debt |
225.2 |
223.6 |
225.0 |
227.5 |
227.6 |
|
|
|
|
|
|
|
|
Other Long Term Liabilities |
7.7 |
7.0 |
7.1 |
6.3 |
1.3 |
|
Deferred Revenue and Other Long Term Lia |
10.6 |
10.9 |
8.5 |
9.4 |
10.1 |
|
Deferred income taxes |
1.4 |
0.0 |
- |
- |
- |
|
Total Liabilities |
603.9 |
609.8 |
557.5 |
567.6 |
580.4 |
|
|
|
|
|
|
|
|
Common Stock |
29.6 |
31.4 |
33.4 |
35.5 |
38.0 |
|
Retained Erngs. |
244.0 |
253.5 |
291.2 |
337.7 |
335.4 |
|
Compreh. Income |
- |
- |
- |
-8.5 |
-2.9 |
|
Trans. Adjust. |
-2.9 |
-3.0 |
-2.4 |
- |
- |
|
Adjustments to employee retirement benef |
-3.8 |
-3.3 |
-3.9 |
- |
- |
|
Unrealized loss on derivative instrument |
-0.1 |
-2.8 |
-3.1 |
- |
- |
|
Total Equity |
266.8 |
275.8 |
315.2 |
364.7 |
370.4 |
|
|
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
870.7 |
885.6 |
872.7 |
932.3 |
950.8 |
|
|
|
|
|
|
|
|
S/O-Common Stock |
59.2 |
62.8 |
66.7 |
71.0 |
75.9 |
|
Total Common Shares Outstanding |
59.2 |
62.8 |
66.7 |
71.0 |
75.9 |
|
T/S-Common Stock |
48.9 |
45.3 |
41.3 |
37.1 |
32.2 |
|
Accumulated Intangible Amortization |
21.1 |
16.3 |
13.6 |
11.6 |
9.9 |
|
Deferred Revenue |
10.6 |
10.9 |
8.5 |
9.4 |
10.1 |
|
Employees |
4,618 |
4,609 |
4,414 |
4,966 |
5,273 |
|
Number of Common Shareholders |
4,035 |
4,074 |
4,255 |
4,309 |
4,359 |
|
Long Term Debt Maturing within 1 Year |
2.0 |
2.0 |
3.8 |
3.3 |
1.6 |
|
Long Term Debt Maturing within 2 Years |
1.8 |
0.2 |
1.8 |
3.3 |
1.9 |
|
Long Term Debt Maturing within 3 Years |
0.0 |
0.0 |
0.0 |
1.0 |
2.0 |
|
Long Term Debt Maturing within 4 Years |
0.0 |
0.0 |
0.0 |
0.0 |
0.5 |
|
Long Term Debt Maturing within 5 Years |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Long Term Debt Maturing after 5 Years |
225.0 |
225.0 |
225.0 |
225.0 |
225.0 |
|
Total Long Term Debt, Supplemental |
228.7 |
227.2 |
230.5 |
232.6 |
231.0 |
|
Operating Leases Due Within 1 Year |
13.6 |
13.0 |
13.3 |
13.2 |
13.7 |
|
Operating Leases Due Within 2 Years |
10.8 |
9.8 |
8.8 |
9.8 |
7.7 |
|
Operating Leases Due Within 3 Year |
7.4 |
8.0 |
6.6 |
6.6 |
3.9 |
|
Operating Leases Due Within 4 Year |
6.1 |
5.0 |
5.5 |
5.2 |
1.9 |
|
Operating Leases Due Within 5 Year |
3.8 |
4.1 |
3.2 |
4.8 |
0.4 |
|
Operating Leases Due After 5 Years |
15.4 |
15.5 |
4.5 |
5.3 |
0.1 |
|
Total Operating Leases |
57.1 |
55.5 |
41.9 |
44.9 |
27.8 |
|
Projected Benefit Obligation - Post-Ret. |
- |
- |
8.6 |
9.7 |
9.3 |
|
Funded Status - Post-Retirement |
- |
- |
-8.6 |
-9.7 |
-9.3 |
|
Accumulated Benefit Obligation - Post-Re |
- |
- |
27.5 |
20.8 |
27.3 |
|
Projected Benefit Obligation - Pension |
41.0 |
38.7 |
39.1 |
24.3 |
31.4 |
|
FV of Plan Assets - Pension |
30.1 |
28.7 |
23.5 |
23.0 |
28.6 |
|
Accumulated Benefit Obligation Pension |
38.4 |
36.7 |
- |
- |
- |
|
Funded Status - Pension |
-10.8 |
-10.0 |
-15.6 |
-1.3 |
-2.9 |
|
Total Funded Status |
-10.8 |
-10.0 |
-24.2 |
-11.0 |
-12.1 |
|
Discount Rate - Post-Retirement |
- |
- |
7.75% |
5.75% |
5.75% |
|
Compensation Rate - Post-Retirement |
- |
- |
8.50% |
9.00% |
9.00% |
|
Net Balance Sheet Assets - Post-Ret. |
- |
- |
-8.6 |
-9.7 |
-9.3 |
|
Net liabilites recognized in balance she |
-4.5 |
-4.3 |
- |
- |
- |
|
Net Assets Recognized on Balance Sheet |
-4.5 |
-4.3 |
-8.6 |
-9.7 |
-9.3 |
Annual
Cash Flows
Financials in: USD (mil)
|
|
31-Oct-2011 |
31-Oct-2010 |
31-Oct-2009 |
31-Oct-2008 |
31-Oct-2007 |
|
Period Length |
12 Months |
12 Months |
12 Months |
12 Months |
12 Months |
|
UpdateType/Date |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
Updated Normal |
|
Filed Currency |
USD |
USD |
USD |
USD |
USD |
|
Exchange Rate
(Period Average) |
1 |
1 |
1 |
1 |
1 |
|
Auditor |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
KPMG LLP |
|
Auditor Opinion |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
Unqualified |
|
|
|
|
|
|
|
|
Net Earnings |
117.7 |
93.2 |
62.8 |
119.7 |
142.4 |
|
Depreciation |
48.5 |
45.0 |
44.5 |
48.2 |
42.1 |
|
Impairment Writeoff |
- |
- |
- |
- |
0.0 |
|
Equity Loss from Investment |
-5.7 |
-2.6 |
0.1 |
0.9 |
0.4 |
|
Sale of Assets |
-0.1 |
-0.1 |
0.0 |
-0.2 |
-0.2 |
|
Gain on sale of a business |
- |
0.0 |
0.0 |
-0.1 |
0.0 |
|
Stock Based Comp. Expense |
8.5 |
6.4 |
4.1 |
5.7 |
7.3 |
|
Increase in deferred income taxes |
-2.0 |
2.9 |
4.7 |
-5.5 |
-0.5 |
|
Net Receivables |
-2.9 |
-0.1 |
126.7 |
14.8 |
9.0 |
|
Inventories |
-25.7 |
-9.9 |
40.0 |
29.9 |
-1.9 |
|
Prepaid Expenses |
-7.1 |
3.1 |
-4.4 |
0.7 |
-1.0 |
|
Accounts Payable & Accured Expenses |
-17.3 |
55.5 |
-27.2 |
1.7 |
-14.0 |
|
Cash from Operating Activities |
113.9 |
193.5 |
251.5 |
215.7 |
183.6 |
|
|
|
|
|
|
|
|
Capital Expenditures |
-57.4 |
-48.7 |
-37.9 |
-48.9 |
-42.2 |
|
Assets Disposals |
0.7 |
0.6 |
0.2 |
1.0 |
0.3 |
|
Investments in Affiliates |
3.0 |
-3.7 |
-3.8 |
-0.3 |
0.0 |
|
Other Assets |
-0.4 |
0.6 |
2.0 |
0.0 |
1.5 |
|
Proceeds from sale of a business |
- |
0.0 |
0.0 |
1.0 |
0.0 |
|
Other acquisitions, net of cash acquired |
-15.2 |
-9.7 |
-6.4 |
-4.4 |
-9.9 |
|
Cash from Investing Activities |
-69.3 |
-60.8 |
-46.0 |
-51.6 |
-50.3 |
|
|
|
|
|
|
|
|
Increase/Repayment of Short Term Debt |
-0.8 |
0.8 |
-2.3 |
2.9 |
0.0 |
|
Issuance of long-term debt, net of costs |
- |
- |
0.0 |
0.0 |
121.5 |
|
Repayment of Long Term Debt |
-1.9 |
-3.6 |
-3.4 |
-1.5 |
-75.0 |
|
Excess Tax Benefits |
3.0 |
3.4 |
7.4 |
3.5 |
13.8 |
|
Stock Options |
14.5 |
16.7 |
13.7 |
4.0 |
13.3 |
|
Repurchase Common |
-130.0 |
-135.8 |
-115.3 |
-110.4 |
-182.8 |
|
Dividends Paid |
-25.0 |
-23.7 |
-21.4 |
-22.6 |
-19.5 |
|
Cash from Financing Activities |
-140.1 |
-142.3 |
-121.3 |
-124.1 |
-128.8 |
|
|
|
|
|
|
|
|
Foreign Exchange Effects |
-1.0 |
-0.8 |
4.2 |
-2.8 |
2.0 |
|
Net Change in Cash |
-96.5 |
-10.4 |
88.4 |
37.3 |
6.5 |
|
|
|
|
|
|
|
|
Net Cash - Beginning Balance |
177.4 |
187.8 |
99.4 |
62.0 |
55.5 |
|
Net Cash - Ending Balance |
80.9 |
177.4 |
187.8 |
99.4 |
62.0 |
|
Cash Interest Paid |
17.1 |
17.3 |
17.7 |
19.8 |
18.2 |
|
Cash Taxes Paid |
60.3 |
28.6 |
29.8 |
55.9 |
61.3 |
Financial
Health
Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)
|
Key Indicators USD (mil) |
||||||
|
|
Quarter |
Quarter |
Annual |
1 Year |
3 Year |
5 Year |
|
Total Revenue |
504.1 |
0.60% |
1,884.0 |
11.45% |
0.10% |
0.52% |
|
Operating Income |
61.0 |
11.44% |
185.0 |
22.27% |
-2.47% |
-1.74% |
|
Income Available to Common Excl Extraord Items |
40.5 |
15.55% |
117.7 |
26.19% |
-0.56% |
-1.85% |
|
Basic EPS Excl Extraord Items |
0.69 |
22.03% |
1.88 |
33.11% |
5.87% |
4.56% |
|
Capital Expenditures |
28.2 |
-34.92% |
57.4 |
17.96% |
5.51% |
7.57% |
|
Cash from Operating Activities |
165.4 |
130.25% |
113.9 |
-41.15% |
-19.18% |
-9.76% |
|
Free Cash Flow |
137.2 |
380.41% |
56.4 |
-61.03% |
-30.32% |
-17.80% |
|
Total Assets |
986.5 |
1.96% |
870.7 |
-1.69% |
-2.25% |
-1.08% |
|
Total Liabilities |
648.8 |
1.19% |
603.9 |
-0.97% |
2.09% |
2.76% |
|
Total Long Term Debt |
223.5 |
-0.75% |
225.2 |
0.72% |
-0.34% |
5.17% |
|
Employees |
- |
- |
4618 |
0.20% |
-2.39% |
-2.58% |
|
Total Common Shares Outstanding |
58.8 |
-4.10% |
59.2 |
-5.71% |
-5.86% |
-6.01% |
|
Market Cap |
2,186.3 |
32.55% |
1,599.8 |
-10.23% |
10.25% |
-1.69% |
|
Key Ratios |
|||||
|
|
31-Oct-2011 |
31-Oct-2010 |
31-Oct-2009 |
31-Oct-2008 |
31-Oct-2007 |
|
Profitability |
|||||
|
Gross Margin |
33.79% |
34.10% |
33.54% |
34.75% |
36.14% |
|
Operating Margin |
9.82% |
8.95% |
7.11% |
10.62% |
11.91% |
|
Pretax Margin |
9.28% |
8.36% |
6.29% |
9.65% |
11.36% |
|
Net Profit Margin |
6.25% |
5.52% |
4.12% |
6.37% |
7.59% |
|
Financial Strength |
|||||
|
Current Ratio |
1.48 |
1.59 |
1.84 |
1.98 |
1.95 |
|
Long Term Debt/Equity |
0.84 |
0.81 |
0.71 |
0.62 |
0.61 |
|
Total Debt/Equity |
0.85 |
0.82 |
0.74 |
0.64 |
0.62 |
|
Management Effectiveness |
|||||
|
Return on Assets |
13.40% |
10.61% |
6.96% |
12.71% |
15.23% |
|
Return on Equity |
43.37% |
31.55% |
18.48% |
32.55% |
37.36% |
|
Efficiency |
|||||
|
Receivables Turnover |
12.95 |
11.80 |
7.62 |
6.96 |
6.50 |
|
Inventory Turnover |
5.98 |
6.01 |
5.28 |
5.35 |
4.89 |
|
Asset Turnover |
2.15 |
1.92 |
1.69 |
1.99 |
2.01 |
|
Market Valuation USD (mil) |
||||
|
P/E (TTM) |
18.67 |
. |
Enterprise Value |
2,505.2 |
|
Price/Sales (TTM) |
1.22 |
. |
Enterprise Value/Revenue (TTM) |
1.26 |
|
Price/Book (MRQ) |
7.18 |
. |
Enterprise Value/EBITDA (TTM) |
9.53 |
|
Market Cap as of 09-Nov-2012 |
2,422.9 |
. |
|
|
Ratio
Comparisons
|
|
Company |
Industry |
Sector |
S&P 500 |
|
Valuation Ratios |
||||
|
P/E Excluding Extraordinary (TTM) |
18.67 |
24.15 |
22.07 |
19.68 |
|
P/E High Excluding Extraordinary - Last 5 Yrs |
21.35 |
46.53 |
37.65 |
32.79 |
|
P/E Low Excluding Extraordinary - Last 5 Yrs |
10.85 |
5.62 |
7.33 |
10.71 |
|
Beta |
1.31 |
1.69 |
1.34 |
1.00 |
|
Price/Revenue (TTM) |
1.22 |
1.72 |
1.52 |
2.57 |
|
Price/Book (MRQ) |
7.18 |
5.56 |
4.76 |
3.67 |
|
Price to Tangible Book (MRQ) |
11.46 |
7.42 |
7.19 |
5.21 |
|
Price to Cash Flow Per Share (TTM) |
12.99 |
15.39 |
15.36 |
14.22 |
|
Price to Free Cash Flow Per Share (TTM) |
17.40 |
38.17 |
32.27 |
26.26 |
|
|
|
|
|
|
|
Dividends |
||||
|
Dividend Yield |
1.07% |
1.53% |
1.88% |
2.26% |
|
Dividend Per Share - 5 Yr Avg |
0.32 |
1.82 |
1.73 |
1.99 |
|
Dividend 5 Yr Growth |
17.32% |
7.36% |
7.09% |
0.08% |
|
Payout Ratio (TTM) |
18.93% |
30.92% |
27.79% |
25.98% |
|
|
|
|
|
|
|
Growth Rates (%) |
||||
|
Revenue (MRQ) vs Qtr 1 Yr Ago |
0.60% |
45.43% |
13.77% |
15.58% |
|
Revenue (TTM) vs TTM 1 Yr Ago |
7.25% |
28.53% |
9.04% |
17.69% |
|
Revenue 5 Yr Growth |
0.52% |
6.89% |
6.24% |
8.97% |
|
EPS (MRQ) vs Qtr 1 Yr Ago |
19.42% |
32.79% |
8.64% |
19.49% |
|
EPS (TTM) vs TTM 1 Yr Ago |
21.36% |
124.33% |
48.61% |
32.55% |
|
EPS 5 Yr Growth |
4.91% |
10.66% |
11.11% |
9.86% |
|
Capital Spending 5 Yr Growth |
7.57% |
7.96% |
2.27% |
-2.04% |
|
|
|
|
|
|
|
Financial Strength |
||||
|
Quick Ratio (MRQ) |
1.05 |
1.00 |
1.00 |
1.24 |
|
Current Ratio (MRQ) |
1.63 |
2.15 |
1.91 |
1.79 |
|
LT Debt/Equity (MRQ) |
0.66 |
1.69 |
0.99 |
0.64 |
|
Total Debt/Equity (MRQ) |
0.67 |
2.35 |
1.16 |
0.73 |
|
Interest Coverage (TTM) |
12.28 |
10.59 |
11.79 |
13.80 |
|
|
|
|
|
|
|
Profitability Ratios (%) |
||||
|
Gross Margin (TTM) |
34.16% |
29.67% |
24.70% |
45.21% |
|
Gross Margin - 5 Yr Avg |
34.51% |
27.82% |
24.93% |
44.91% |
|
EBITD Margin (TTM) |
13.23% |
15.84% |
12.97% |
24.43% |
|
EBITD Margin - 5 Yr Avg |
12.38% |
14.26% |
12.28% |
22.84% |
|
Operating Margin (TTM) |
10.60% |
11.14% |
9.82% |
20.63% |
|
Operating Margin - 5 Yr Avg |
9.80% |
10.24% |
9.51% |
18.28% |
|
Pretax Margin (TTM) |
10.14% |
10.68% |
8.95% |
17.95% |
|
Pretax Margin - 5 Yr Avg |
9.11% |
10.05% |
8.79% |
17.10% |
|
Net Profit Margin (TTM) |
6.76% |
7.21% |
6.41% |
13.65% |
|
Net Profit Margin - 5 Yr Avg |
6.05% |
7.05% |
6.01% |
12.10% |
|
Effective Tax Rate (TTM) |
33.35% |
31.59% |
29.26% |
28.45% |
|
Effective Tax rate - 5 Yr Avg |
33.55% |
30.73% |
31.03% |
29.92% |
|
|
|
|
|
|
|
Management Effectiveness (%) |
||||
|
Return on Assets (TTM) |
13.75% |
5.95% |
6.25% |
8.54% |
|
Return on Assets - 5 Yr Avg |
11.81% |
6.90% |
6.69% |
8.40% |
|
Return on Investment (TTM) |
23.33% |
5.90% |
4.72% |
7.90% |
|
Return on Investment - 5 Yr Avg |
18.90% |
7.05% |
5.72% |
8.27% |
|
Return on Equity (TTM) |
40.45% |
26.91% |
18.99% |
19.72% |
|
Return on Equity - 5 Yr Avg |
32.37% |
29.94% |
23.87% |
20.06% |
|
|
|
|
|
|
|
Efficiency |
||||
|
Revenue/Employee (TTM) |
430,378.90 |
392,858.56 |
357,573.83 |
927,613.77 |
|
Net Income/Employee (TTM) |
29,087.27 |
27,734.61 |
23,741.62 |
116,121.92 |
|
Receivables Turnover (TTM) |
10.04 |
3.60 |
8.63 |
13.25 |
|
Inventory Turnover (TTM) |
5.60 |
4.56 |
8.11 |
14.53 |
|
Asset Turnover (TTM) |
2.03 |
0.81 |
1.00 |
0.93 |
Annual
Ratios
Financials in: USD (mil)
Except for share items (millions) and per share items
(actual units)
|
|
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Standard & Poors
|
United
States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks,
Rising Debt Burden; Outlook Negative |
|
Publication
date: 05-Aug-2011 20:13:14 EST |
We have lowered our long-term
sovereign credit rating on the United States of America to 'AA+' from 'AAA' and
affirmed the 'A-1+' short-term rating.
We have also removed both the short- and long-term ratings
from CreditWatch negative.
The downgrade reflects our opinion that the fiscal
consolidation plan that Congress and the Administration recently agreed to
falls short of what, in our view, would be necessary to stabilize the
government's medium-term debt dynamics.
More broadly, the downgrade reflects our view that the
effectiveness, stability, and predictability of American policymaking and
political institutions have weakened at a time of ongoing fiscal and economic
challenges to a degree more than we envisioned when we assigned a negative
outlook to the rating on April 18, 2011.
Since then, we have changed our view of the difficulties in
bridging the gulf between the political parties over fiscal policy, which makes
us pessimistic about the capacity of Congress and the Administration to be able
to leverage their agreement this week into a broader fiscal consolidation plan
that stabilizes the government's debt dynamics any time soon.
The outlook on the long-term rating is negative. We could
lower the long-term rating to 'AA' within the next two years if we see that
less reduction in spending than agreed to, higher interest rates, or new fiscal
pressures during the period result in a higher general government debt
trajectory than we currently assume in our base case.
TORONTO (Standard &
Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it
lowered its long-term sovereign credit rating on the United States of America
to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the
long-term rating is negative. At the same time, Standard & Poor's affirmed
its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's
removed both ratings from CreditWatch, where they were placed on July 14, 2011,
with negative implications.
The transfer and convertibility (T&C) assessment
of the U.S.--our assessment of the likelihood of official interference in the
ability of U.S.-based public- and private-sector issuers to secure foreign
exchange for
debt service--remains
'AAA'.
We lowered our long-term
rating on the U.S. because we believe that the prolonged controversy over
raising the statutory debt ceiling and the related fiscal policy debate
indicate that further near-term progress containing the growth in public
spending, especially on entitlements, or on reaching an agreement on raising
revenues is less likely than we previously assumed and will remain a contentious
and fitful process. We also believe that the fiscal consolidation plan that
Congress and the Administration agreed to this week falls short of the amount
that we believe is necessary to stabilize the general government debt burden by
the middle of the decade.
Our lowering of the
rating was prompted by our view on the rising public debt burden and our
perception of greater policymaking uncertainty, consistent with our criteria
(see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011, especially Paragraphs 36-41).
Nevertheless, we view the U.S. federal government's other economic, external,
and monetary credit attributes, which form the basis for the sovereign rating,
as broadly unchanged.
We have taken the ratings
off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment
of 2011 has removed any perceived immediate threat of payment default posed by
delays to raising the government's debt ceiling. In addition, we believe that
the act provides sufficient clarity to allow us to evaluate the likely course
of U.S. fiscal policy for the next few years.
The political brinksmanship of recent months
highlights what we see as America's governance and policymaking becoming less
stable, less effective, and less predictable than what we previously believed.
The statutory debt ceiling and the threat of default have become political
bargaining chips in the debate over fiscal policy. Despite this year's
wide-ranging debate, in our view, the differences between political parties
have proven to be extraordinarily difficult to bridge, and, as we see it, the
resulting agreement fell well short of the comprehensive fiscal consolidation
program that some proponents had envisaged until quite recently. Republicans
and Democrats have only been able to agree to relatively modest savings on
discretionary spending while delegating to the Select Committee decisions on
more comprehensive measures. It appears that for now, new revenues have dropped
down on the menu of policy options. In addition, the plan envisions only minor
policy changes on Medicare and little change in other entitlements,
the containment of which
we and most other independent observers regard as key to long-term fiscal
sustainability.
Our opinion is that
elected officials remain wary of tackling the structural issues required to
effectively address the rising U.S. public debt burden in a manner consistent
with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011, especially Paragraphs 36-41). In
our view, the difficulty in framing a consensus on fiscal policy weakens the
government's ability to manage public finances and diverts attention from the
debate over how to achieve more balanced and dynamic economic growth in an era
of fiscal stringency and private-sector deleveraging (ibid). A new political
consensus might (or might not) emerge after the 2012 elections, but we believe
that by then, the government debt burden will likely be higher, the needed
medium-term fiscal adjustment potentially greater, and the inflection point on
the U.S. population's demographics and other age-related spending drivers
closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now," June 21, 2011).
Standard & Poor's
takes no position on the mix of spending and revenue measures that Congress and
the Administration might conclude is appropriate for putting the U.S.'s
finances on a sustainable footing.
The act calls for as much
as $2.4 trillion of reductions in expenditure growth over the 10 years through
2021. These cuts will be implemented in two steps: the $917 billion agreed to
initially, followed by an additional $1.5 trillion that the newly formed
Congressional Joint Select Committee on Deficit Reduction is supposed to
recommend by November 2011. The act contains no measures to raise taxes or
otherwise enhance revenues, though the committee could recommend them.
The act further provides
that if Congress does not enact the committee's recommendations, cuts of $1.2
trillion will be implemented over the same time period. The reductions would
mainly affect outlays for civilian discretionary spending, defense, and
Medicare. We understand that this fall-back mechanism is designed to encourage
Congress to embrace a more balanced mix of expenditure savings, as the
committee might recommend.
We note that in a letter
to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated
total budgetary savings under the act to be at least $2.1 trillion over the
next 10 years relative to its baseline assumptions. In updating our own fiscal
projections, with certain modifications outlined below, we have relied on the
CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to
include the CBO assumptions contained in its Aug. 1 letter to Congress. In
general, the CBO's "Alternate Fiscal Scenario" assumes a continuation
of recent Congressional action overriding existing law.
We view the act's
measures as a step toward fiscal consolidation. However, this is within the
framework of a legislative mechanism that leaves open the details of what is
finally agreed to until the end of 2011, and Congress and the Administration
could modify any agreement in the future. Even assuming that at least $2.1
trillion of the spending reductions the act envisages are implemented, we
maintain our view that the U.S. net general government debt burden (all levels
of government combined, excluding liquid financial assets) will likely continue
to grow. Under our revised base case fiscal scenario--which we consider to be
consistent with a 'AA+' long-term rating and a negative outlook--we now project
that net general government debt would rise from an estimated 74% of GDP by the
end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of
sovereign indebtedness is high in relation to those of peer credits and, as
noted, would continue to rise under the act's revised policy settings.
Compared with previous
projections, our revised base case scenario now assumes that the 2001 and 2003
tax cuts, due to expire by the end of 2012, remain in place. We have changed
our assumption on this because the majority of Republicans in Congress continue
to resist any measure that would raise revenues, a position we believe Congress
reinforced by passing the act. Key macroeconomic assumptions in the base case
scenario include trend real GDP growth of 3% and consumer price inflation near
2% annually over the decade.
Our revised upside
scenario--which, other things being equal, we view as consistent with the
outlook on the 'AA+' long-term rating being revised to stable--retains these
same macroeconomic assumptions. In addition, it incorporates $950 billion of
new revenues on the assumption that the 2001 and 2003 tax cuts for high earners
lapse from 2013 onwards, as the Administration is advocating. In this scenario,
we project that the net general government debt would rise from an estimated
74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside
scenario--which, other things being equal, we view as being consistent with a
possible further downgrade to a 'AA' long-term rating--features less-favorable
macroeconomic assumptions, as outlined below and also assumes that the second
round of spending cuts (at least $1.2 trillion) that the act calls for does not
occur. This scenario also assumes somewhat higher nominal interest rates for
U.S. Treasuries. We still believe that the role of the U.S. dollar as the key
reserve currency confers a government funding advantage, one that could change
only slowly over time, and that Fed policy might lean toward continued loose
monetary policy at a time of fiscal tightening. Nonetheless, it is possible
that interest rates could rise if investors re-price relative risks. As a
result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in
10-year bond yields relative to the base and upside cases from 2013 onwards. In
this scenario, we project the net public debt burden would rise from 74% of GDP
in 2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios
also take into account the significant negative revisions to historical GDP
data that the Bureau of Economic Analysis announced on July 29. From our
perspective, the effect of these revisions underscores two related points when
evaluating the likely debt trajectory of the U.S. government. First, the
revisions show that the recent recession was deeper than previously assumed, so
the GDP this year is lower than previously thought in both nominal and real
terms. Consequently, the debt burden is slightly higher. Second, the revised
data highlight the sub-par path of the current economic recovery when compared
with rebounds following previous post-war recessions. We believe the sluggish
pace of the current economic recovery could be consistent with the experiences
of countries that have had financial crises in which the slow process of debt
deleveraging in the private sector leads to a persistent drag on demand. As a
result, our downside case scenario assumes relatively modest real trend GDP
growth of 2.5% and inflation of near 1.5% annually going forward.
When comparing the U.S.
to sovereigns with 'AAA' long-term ratings that we view as relevant
peers--Canada, France, Germany, and the U.K.--we also observe, based on our
base case scenarios for each, that the trajectory of the U.S.'s net public debt
is diverging from the others. Including the U.S., we estimate that these five
sovereigns will have net general government debt to GDP ratios this year
ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%.
By 2015, we project that their net public debt to GDP ratios will range between
30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at
79%. However, in contrast with the U.S., we project that the net public debt
burdens of these other sovereigns will begin to decline, either before or by
2015.
Standard & Poor's
transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment
reflects our view of the likelihood of the sovereign restricting other public
and private issuers' access to foreign exchange needed to meet debt service.
Although in our view the credit standing of the U.S. government has
deteriorated modestly, we see little indication that official interference of
this kind is entering onto the policy agenda of either Congress or the
Administration. Consequently, we continue to view this risk as being highly
remote.
The outlook on the
long-term rating is negative. As our downside alternate fiscal scenario
illustrates, a higher public debt trajectory than we currently assume could
lead us to lower the long-term rating again. On the other hand, as our upside
scenario highlights, if the recommendations of the Congressional Joint Select
Committee on Deficit Reduction--independently or coupled with other
initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high
earners--lead to fiscal consolidation measures beyond the minimum mandated, and
we believe they are likely to slow the deterioration of the government's debt
dynamics, the long-term rating could stabilize at 'AA+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.20 |
|
|
1 |
Rs.88.37 |
|
Euro |
1 |
Rs.71.47 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SCs 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.