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Intermec Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 5, 2010 06:23AM

Intermec Inc. (IN) filed Quarterly Report for the period ended 2010-06-27. Intermec Inc. has a market cap of $668.6 million; its shares were traded at around $10.82 with a P/E ratio of 120.2 and P/S ratio of 1.

IN is in the portfolios of Chuck Royce of Royce& Associates, PRIMECAP Management, Bruce Kovner of Caxton Associates.

Highlight of Business Operations:

Selling, General and Administrative Expenses Total selling, general and administrative (“SG&A”) expenses were $45.9 and $90.8 million for the three and six months ended June 27, 2010, respectively, compared to SG&A expenses of $44.7 million and $95.7 million for the corresponding prior-year periods. The decrease in SG&A expenses for the six months ended June 27, 2010, of $4.9 million, compared to the six months ended June 28, 2009, was primarily attributable to the labor-related savings from our two restructuring activities announced in 2009, reduction in pension-related costs from the freezing of our pension plans in December 2009 and other ongoing cost reduction programs.

The total pre-tax restructuring costs for the restructuring plan announced in January 2009 were approximately $9.5 million, including employee termination costs of approximately $8.4 million, and $1.1 million of other transitional costs. We recorded the entire restructuring charge in 2009, and substantially all of the severance-related and periodic transitional costs were cash expenditures. We expect to achieve an annual labor-related savings of $14.0 to $16.0 million in connection with this restructuring plan.

The total restructuring costs for the restructuring plan announced in April 2009 are in an anticipated pre-tax range of $11.0 to $13.0 million, including employee termination costs of $10.0 to $11.0 million, and $1.0 to $2.0 million of other transitional costs. We recorded $11.1 million of the restructuring charges in 2009, and $1.0 million for the six months ended June 27, 2010. We expect to record the remaining charge throughout 2010. We anticipate that substantially all of the severance-related and periodic transitional costs will be cash expenditures. We expect to achieve annualized labor-related savings of $17.0 to $19.0 million in connection with this restructuring plan.

Interest, Net Net interest (income) expense was $(0.1) and $0.1 million for the three and six months ended June 27, 2010, respectively, compared to net interest income of $0.0 and $0.1 million for the corresponding prior-year periods. The decrease in net interest income was mainly due to lower average interest rates comparing to prior-year periods.

Cash used in operating activities for the six months ended June 27, 2010, was $0.7 million and consisted of net loss of $6.4 million, adjustments for non-cash items of $7.9 million and cash used by working capital and other activities of $2.2 million. Cash used in operating activities in the first half of 2010 was primarily due to net loss and payment of trade payables and other purchases.

For the six months ended June 27, 2010, investing activities used $8.2 million of cash primarily due to capital expenditures of $6.8 million. Cash used in investing activities for six months ended June 28, 2009 was $5.2 million. This was related to capital expenditures of $4.7 million and capitalized patent legal fees of $2.3 million, offset by proceeds from sale of property of $1.9 million.

Read the The complete Report



Stocks Discussed: IN,
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