Cooper Industries Ltd. (CBE, Financial) filed Quarterly Report for the period ended 2010-03-31.
Cooper Industries Ltd. has a market cap of $8.46 billion; its shares were traded at around $50.58 with a P/E ratio of 18.3 and P/S ratio of 1.6. The dividend yield of Cooper Industries Ltd. stocks is 2.2%. 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, Brian Rogers of T Rowe Price Equity Income Fund, John Hussman of Hussman Economtrics Advisors, Inc., Richard Pzena of Pzena Investment Management LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc, Chuck Royce of Royce& Associates.
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 in 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 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.
In the first quarter of 2010, Cooper completed one of the two remaining factory closures and recorded $3.5 million of costs associated with the ongoing 2009 restructuring actions. The 2010 restructuring costs include $3.1 million related to the Electrical Products Group segment and $0.4 million related to the Energy and Safety Solutions segment. During the first quarter of 2010, Cooper expended $5.6 million in cash related to its restructuring actions. At March 31, 2010, Cooper has an accrual for future cash expenditures related to the restructuring actions of $4.0 million. Cooper expects to incur incremental restructuring charges in the range of approximately $10 to $15 million associated with completion of the planned restructuring activities and additional actions anticipated in 2010, including certain actions for the Tools segment. The workforce reductions, contract termination and other exit costs and the related cash payments will be substantially completed in 2010. See Note 10 of the Notes to Consolidated Financial Statements.
Coopers operating working capital (defined as receivables and inventories less accounts payable) increased $2.9 million during the first quarter of 2010. A $32.1 million increase in receivables and a $19.0 million increase in inventories were primarily offset by a $48.2 million increase in accounts payable. Operating working capital turnover (defined as annualized quarterly revenues divided by average quarterly operating working capital) for the 2010 first quarter was 5.5 turns as compared to the 4.5 turns reported for the same period of 2009 reflecting efficient working capital utilization.
Cash provided by operating activities was $83.6 million during the 2010 first quarter. This cash, plus $13.7 million of cash received from stock option exercises, was primarily used to fund capital expenditures of $14.7 million, acquisitions of $6.2 million, dividends of $41.9 million and share purchases of $27.1 million.
Cash provided by operating activities was $165.2 million during the 2009 first quarter. This cash, plus $6.3 million from redemption of short-term investments and $2.4 million of cash received from stock option exercises, was primarily used to fund capital expenditures of $28.7 million, acquisitions of $16.6 million, dividends of $42.1 million, debt repayments of $13.9 million and share purchases of $25.9 million.
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Cooper Industries Ltd. has a market cap of $8.46 billion; its shares were traded at around $50.58 with a P/E ratio of 18.3 and P/S ratio of 1.6. The dividend yield of Cooper Industries Ltd. stocks is 2.2%. 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, Brian Rogers of T Rowe Price Equity Income Fund, John Hussman of Hussman Economtrics Advisors, Inc., Richard Pzena of Pzena Investment Management LLC, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Manning & Napier Advisors, Inc, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Income from continuing operations for the first quarter of 2010 was $118.6 million on revenues of $1,228.6 million compared with 2009 first quarter income from continuing operations of $81.2 million on revenues of $1,256.8 million. First quarter diluted earnings per share from continuing operations increased 46% to $.70 from $.48 in 2009. During the first quarter of 2010, reported income from continuing operations was reduced by restructuring charges of $3.5 million or $.02 per share. During the first quarter of 2009, reported income from continuing operations was reduced by restructuring charges of $8.8 million or $.04 per share and was favorably impacted $.05 per share by discrete tax items related to foreign taxes.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 in 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 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.
In the first quarter of 2010, Cooper completed one of the two remaining factory closures and recorded $3.5 million of costs associated with the ongoing 2009 restructuring actions. The 2010 restructuring costs include $3.1 million related to the Electrical Products Group segment and $0.4 million related to the Energy and Safety Solutions segment. During the first quarter of 2010, Cooper expended $5.6 million in cash related to its restructuring actions. At March 31, 2010, Cooper has an accrual for future cash expenditures related to the restructuring actions of $4.0 million. Cooper expects to incur incremental restructuring charges in the range of approximately $10 to $15 million associated with completion of the planned restructuring activities and additional actions anticipated in 2010, including certain actions for the Tools segment. The workforce reductions, contract termination and other exit costs and the related cash payments will be substantially completed in 2010. See Note 10 of the Notes to Consolidated Financial Statements.
Coopers operating working capital (defined as receivables and inventories less accounts payable) increased $2.9 million during the first quarter of 2010. A $32.1 million increase in receivables and a $19.0 million increase in inventories were primarily offset by a $48.2 million increase in accounts payable. Operating working capital turnover (defined as annualized quarterly revenues divided by average quarterly operating working capital) for the 2010 first quarter was 5.5 turns as compared to the 4.5 turns reported for the same period of 2009 reflecting efficient working capital utilization.
Cash provided by operating activities was $83.6 million during the 2010 first quarter. This cash, plus $13.7 million of cash received from stock option exercises, was primarily used to fund capital expenditures of $14.7 million, acquisitions of $6.2 million, dividends of $41.9 million and share purchases of $27.1 million.
Cash provided by operating activities was $165.2 million during the 2009 first quarter. This cash, plus $6.3 million from redemption of short-term investments and $2.4 million of cash received from stock option exercises, was primarily used to fund capital expenditures of $28.7 million, acquisitions of $16.6 million, dividends of $42.1 million, debt repayments of $13.9 million and share purchases of $25.9 million.
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