Cooper Industries Ltd. (CBE, Financial) filed Quarterly Report for the period ended 2010-09-30.
Cooper Industries Ltd. has a market cap of $9.04 billion; its shares were traded at around $54.22 with a P/E ratio of 17.21 and P/S ratio of 1.78. The dividend yield of Cooper Industries Ltd. stocks is 1.99%. Cooper Industries Ltd. had an annual average earning growth of 5.3% over the past 10 years.CBE is in the portfolios of Richard Aster Jr of Meridian Fund, Richard Pzena of Pzena Investment Management LLC, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Brian Rogers of T Rowe Price Equity Income Fund, Mario Gabelli of GAMCO Investors, Paul Tudor Jones of The Tudor Group, Pioneer Investments, RS Investment Management, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc.
Net income for the third quarter of 2010 was $141.7 million on revenues of $1,240.7 million compared with 2009 third quarter net income from continuing operations of $114.3 million on revenues of $1,286.4 million. The results for the third quarter 2010 reflect the deconsolidation of the Tools segment as a result of the previously announced formation of the Apex Tool Group, LLC joint venture. Third quarter diluted earnings per share from operations was $.85 compared to $.68 from continuing operations in 2009. The third quarter of 2010 also included restructuring charges of $1.5 million or $.01 per share compared to restructuring and asset impairment charges of $6.5 million or $.03 per share in the third quarter of 2009. The third quarter 2009 results also included discrete tax adjustments that increased earnings per share from continuing operations by $.01 per share.
Net income for the nine months ended September 30, 2010 was $301.9 million on revenues of $3,806.0 million compared with income from continuing operations in the comparable nine month period of 2009 of $284.8 million on revenues of $3,813.0 million. Diluted earnings per share were $1.79 for the nine months ended September 30, 2010, compared to income from continuing operations of $1.69 in 2009. Reported net income in the nine month period ended September 30, 2010 was reduced by the non-cash after-tax charge of $93.7 million or $.55 per share related to the formation of the Tools Joint Venture and includes restructuring charges of $8.0 million or $.04 per share. Income from continuing operations in the nine month period ended September 30, 2009 included restructuring charges of $25.7 million or $.13 per share and was favorably impacted by discrete tax items primarily related to foreign taxes which improved earnings by $.06 per share.
As a result of the downturn in economic conditions in the latter half of 2008, Cooper committed in the fourth quarter of 2008 to employment reductions to appropriately size Coopers workforce to current and anticipated market conditions and to downsize a domestic Tools segment manufacturing operation. During 2009, Cooper committed to additional employment reductions and certain facility closures as a result of managements ongoing assessment of its hourly and salary workforce and its required production capacity in consideration of the global economic recession. Cooper recorded a $35.7 million charge in the fourth quarter of 2008 related to these actions, $15.2 million of which related to the Energy and Safety Solutions segment, $10.3 million related to the Electrical Products Group segment and $10.2 million related to the Tools segment. A total of 1,314 hourly and 930 salaried positions were eliminated as a result of the fourth quarter 2008 restructuring actions to reduce Coopers workforce. Cooper recorded additional charges of $28.7 million during the year ended December 31, 2009 related to these actions, $8.1 million of which related to the Energy and Safety Solutions segment, $10.4 million related to the Electrical Products Group segment and $8.6 million related to the Tools segment. The remaining $1.6 million was related to reductions in Coopers corporate staff. A total of 1,088 hourly and 772 salaried positions were eliminated as a result of the 2009 restructuring actions to reduce Coopers workforce. As part of these restructuring actions, Cooper approved the closure of ten factories and warehouses, eight of which were completed by the end of 2009. Cooper recorded non-cash impairment charges of $1.2 million in the second half of 2009 related to these actions. At December 31, 2009, Cooper had an accrual of $6.1 million for future cash expenditures related to its restructuring actions.
Cash provided by operating activities was $397.0 million during the nine months ended September 30, 2010. This cash, plus an additional $85.6 million of cash and cash equivalents and $34.5 million of cash received from stock option exercises, was primarily used to fund share purchases of $276.0 million, dividends of $132.7 million, capital expenditures of $57.9 million, and acquisitions of $21.6 million. Cooper also used $34.9 million to place funds in an escrow account related to a tender offer for all outstanding shares of Mount Engineering, a publicly traded company based in the United Kingdom as discussed in Note 4 of the Notes to Consolidated Financial Statements.
Cash provided by operating activities was $638.4 million during the nine months ended September 30, 2009. This cash, plus $19.1 million from redemption of short-term investments and $4.5 million of cash received from stock option exercises significantly exceeded the funds utilized to fund capital expenditures of $70.8 million, acquisitions of $21.8 million, dividends of $125.7 million, debt repayments of $24.6 million and share purchases of $26.0 million. Cash provided by operating activities in 2009 was net of a $25 million voluntary contribution to the U.S. defined benefit pension plan.
Read the The complete Report
Cooper Industries Ltd. has a market cap of $9.04 billion; its shares were traded at around $54.22 with a P/E ratio of 17.21 and P/S ratio of 1.78. The dividend yield of Cooper Industries Ltd. stocks is 1.99%. Cooper Industries Ltd. had an annual average earning growth of 5.3% over the past 10 years.CBE is in the portfolios of Richard Aster Jr of Meridian Fund, Richard Pzena of Pzena Investment Management LLC, James Barrow of Barrow, Hanley, Mewhinney & Strauss, Brian Rogers of T Rowe Price Equity Income Fund, Mario Gabelli of GAMCO Investors, Paul Tudor Jones of The Tudor Group, Pioneer Investments, RS Investment Management, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc.
Highlight of Business Operations:
On March 26, 2010, Cooper announced that it entered into a Framework Agreement with Danaher Corporation to create a joint venture combining Coopers Tools business with certain Tools businesses from Danahers Tools and Components Segment (the Joint Venture). On July 6, 2010, Cooper announced the completion of the Joint Venture, named Apex Tool Group, LLC. Cooper and Danaher each own a 50% interest in the Joint Venture, have equal representation on its Board of Directors and have a 50% voting interest in the Joint Venture. At completion of the transaction in July, Cooper deconsolidated the Tools business assets and liabilities contributed to the Joint Venture and recognized Coopers 50% ownership interest as an equity investment. Beginning in the third quarter of 2010, Cooper recognizes its proportionate share of the Joint Ventures operating results using the equity method. Recording the investment at its fair value of $480 million resulted in a pretax loss of $134.5 million related to the transaction. The pretax loss related to the formation of the Joint Venture included a $26.5 million gain from the contribution of the Tools business net assets resulting from the difference in the fair value of the equity investment and the carrying value of the net assets being contributed and transaction related costs. This gain was offset by the write-off of approximately $161.0 million (approximately $104.4 million net of the associated tax affect) from recognition of the accumulated other nonowner changes in equity related to the Tools business, primarily related to cumulative currency translation losses. The Tools business assets and liabilities contributed to theNet income for the third quarter of 2010 was $141.7 million on revenues of $1,240.7 million compared with 2009 third quarter net income from continuing operations of $114.3 million on revenues of $1,286.4 million. The results for the third quarter 2010 reflect the deconsolidation of the Tools segment as a result of the previously announced formation of the Apex Tool Group, LLC joint venture. Third quarter diluted earnings per share from operations was $.85 compared to $.68 from continuing operations in 2009. The third quarter of 2010 also included restructuring charges of $1.5 million or $.01 per share compared to restructuring and asset impairment charges of $6.5 million or $.03 per share in the third quarter of 2009. The third quarter 2009 results also included discrete tax adjustments that increased earnings per share from continuing operations by $.01 per share.
Net income for the nine months ended September 30, 2010 was $301.9 million on revenues of $3,806.0 million compared with income from continuing operations in the comparable nine month period of 2009 of $284.8 million on revenues of $3,813.0 million. Diluted earnings per share were $1.79 for the nine months ended September 30, 2010, compared to income from continuing operations of $1.69 in 2009. Reported net income in the nine month period ended September 30, 2010 was reduced by the non-cash after-tax charge of $93.7 million or $.55 per share related to the formation of the Tools Joint Venture and includes restructuring charges of $8.0 million or $.04 per share. Income from continuing operations in the nine month period ended September 30, 2009 included restructuring charges of $25.7 million or $.13 per share and was favorably impacted by discrete tax items primarily related to foreign taxes which improved earnings by $.06 per share.
As a result of the downturn in economic conditions in the latter half of 2008, Cooper committed in the fourth quarter of 2008 to employment reductions to appropriately size Coopers workforce to current and anticipated market conditions and to downsize a domestic Tools segment manufacturing operation. During 2009, Cooper committed to additional employment reductions and certain facility closures as a result of managements ongoing assessment of its hourly and salary workforce and its required production capacity in consideration of the global economic recession. Cooper recorded a $35.7 million charge in the fourth quarter of 2008 related to these actions, $15.2 million of which related to the Energy and Safety Solutions segment, $10.3 million related to the Electrical Products Group segment and $10.2 million related to the Tools segment. A total of 1,314 hourly and 930 salaried positions were eliminated as a result of the fourth quarter 2008 restructuring actions to reduce Coopers workforce. Cooper recorded additional charges of $28.7 million during the year ended December 31, 2009 related to these actions, $8.1 million of which related to the Energy and Safety Solutions segment, $10.4 million related to the Electrical Products Group segment and $8.6 million related to the Tools segment. The remaining $1.6 million was related to reductions in Coopers corporate staff. A total of 1,088 hourly and 772 salaried positions were eliminated as a result of the 2009 restructuring actions to reduce Coopers workforce. As part of these restructuring actions, Cooper approved the closure of ten factories and warehouses, eight of which were completed by the end of 2009. Cooper recorded non-cash impairment charges of $1.2 million in the second half of 2009 related to these actions. At December 31, 2009, Cooper had an accrual of $6.1 million for future cash expenditures related to its restructuring actions.
Cash provided by operating activities was $397.0 million during the nine months ended September 30, 2010. This cash, plus an additional $85.6 million of cash and cash equivalents and $34.5 million of cash received from stock option exercises, was primarily used to fund share purchases of $276.0 million, dividends of $132.7 million, capital expenditures of $57.9 million, and acquisitions of $21.6 million. Cooper also used $34.9 million to place funds in an escrow account related to a tender offer for all outstanding shares of Mount Engineering, a publicly traded company based in the United Kingdom as discussed in Note 4 of the Notes to Consolidated Financial Statements.
Cash provided by operating activities was $638.4 million during the nine months ended September 30, 2009. This cash, plus $19.1 million from redemption of short-term investments and $4.5 million of cash received from stock option exercises significantly exceeded the funds utilized to fund capital expenditures of $70.8 million, acquisitions of $21.8 million, dividends of $125.7 million, debt repayments of $24.6 million and share purchases of $26.0 million. Cash provided by operating activities in 2009 was net of a $25 million voluntary contribution to the U.S. defined benefit pension plan.
Read the The complete Report
