Cooper Industries Plc, formerly Cooper Industries, Ltd., operates in two business segments: Electrical Products and Tools. The Company manufactures, markets and sells its products and provides services throughout the world. Operations in the United States are conducted by wholly owned subsidiaries of Cooper, organized by the two business segments. Cooper serves four major markets: the industrial, commercial, utility and residential markets. Cooper also serves the electronics and telecommunications markets. Markets for Cooper's products and services are worldwide, with United States being the key market. The Electrical Products segment manufactures, markets and sells electrical and circuit protection products. The Tools segment manufactures, markets and sells hand tools for industrial, construction, electronics and consumer markets.
Industry:ELEC PRODS-MISC Sector: Computer and Technology Fiscal Year End:December Last Reported Quarter:12/31/11 Next EPS Date:04/23/12
Capital Structure Solvency and Cash Flow
Balance Sheet and Cash Flow
During 3Q10, free cash flow was $112 million, which brings the total free cash flow for 2010 till the end of the third quarter to $334.5 million. The Company is on track, for the 10th consecutive year, to report free cash flow and is likely exceed the recurring income.
The balance sheet is in great shape with net debt to total capitalization at 17.4% at the end of the quarter. This was a slight increase from the second quarter due to the impact of accelerated share buyback during 3Q10. Cash and cash equivalents at the end of the quarter was $296.0 million versus $381.6 million at the end of 4Q09.
Dividends & Share Repurchase
On August 2, 2010, the Board of Directors of CBE declared a regular quarterly dividend of $0.27 on each share of the Company’s outstanding common stock. The dividend was paid on October 1, 2010 to shareholders of record on August 31, 2010.
Cooper repurchased 4.2 million shares (2.5% of 2Q10 shares outstanding) for $185 million in 3Q10. The Company achieved its plan to repurchase 6 million by the end of 3Q10.
Last edited Tue Dec 07, 2010 06:09 AM by BipashaChowdhury (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
On November 19, 2010, CBE entered into an agreement to acquire a Norwegian closed circuit television (CCTV) systems manufacturer Hernis Scan Systems AS (Hernis). The completion of the acquisition is subject to receiving approval of Vislink shareholders and other regulatory consents. Hernis is a group company of Vislink plc (VLK.L) and specializes in making CCTV systems designed specially for onshore and offshore oil and gas, marine and petrochemical markets worldwide. After the completion of the transaction, Hernis will operate as a part of Cooper’s Safety division.
On November 10, 2010, CBE announced the acquisitions of Mount Engineering plc, a United Kingdom based manufacturer of specialty threaded adaptors and reducers for harsh and hazardous environments, and Apex Lighting Controls Ltd., a private manufacturer of Energy Management lighting controls also based in the UK.
Last edited Tue Dec 07, 2010 06:10 AM by BipashaChowdhury (Zacks Investment Research)
• High cost of raw materials can negatively affect revenue, margins, and earnings of CBE.
• Any prolonged downturn in the US, European, and Latin American economies will hamper CBE’s growth prospects.
• Heightened global competition, given that CBE expands its international exposure, can act as a negative catalyst for the Company.
• Any significant change in monetary or fiscal policies can result in currency fluctuations and can adversely affect the Company’s net sales and margins.
Last edited Tue Dec 07, 2010 06:10 AM by BipashaChowdhury (Zacks Investment Research)
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