NCR Corp. (NCR, Financial) filed Quarterly Report for the period ended 2009-03-31.
NCR Corporation is a recognized world leader in providing Relationship Technology solutions for the retail financial communications travel and transportation and insurance markets. NCR's Relationship Technology solutions include privacy-enabled Teradata warehouses ATMs and store automation. The company's business solutions are built on the foundation of its long-established industry knowledge and consulting expertise value-adding software global customer support services a complete line of consumable and media products and world-leading hardware technology. NCR Corp. has a market cap of $1.61 billion; its shares were traded at around $10.15 with a P/E ratio of 7.1 and P/S ratio of 0.3. NCR Corp. had an annual average earning growth of 20.6% over the past 5 years.
Postemployment plan expense during the first quarter of 2009 decreased to $11 million from $13 million during the same time period in 2008. The decrease was driven primarily by a $1 million adjustment in the expected costs of the 2008 organizational realignment initiative. These realignment initiatives are described in more detail in the Restructuring and Re-engineering section of this MD&A.
Other income, net decreased by $7 million in the first quarter of 2009 as compared to the first quarter of 2008, primarily due to a decrease in interest income of $6 million. Other income includes items such as gains or losses on equity investments, costs and recoveries related to environmental matters that relate to businesses previously disposed of, and interest income. Interest income was $2 million in the first quarter of 2009 compared to $8 million in the first quarter of 2008. The decrease in interest income was primarily due to lower interest rates earned on excess, invested cash during the first quarter of 2009. Other income in the first quarter of 2009 included a $5 million benefit related to the settlement of insurance recoveries related to the Fox River environmental matter, which was offset by an impairment charge of $5 million related to one of NCRs equity method investments.
Financing activities and certain other investing activities are not included in our calculation of free cash flow. These other investing activities for the three months ended March 31, 2008 included net proceeds of $38 million from the sale of property, plant and equipment. Our financing activities for the three months ended March 31, 2008, included cash outflows from share repurchases of $193 million to repurchase approximately 8.7 million shares. During the first quarter of 2009, consistent with our initiatives to reduce cash outflow, we did not repurchase shares under our previously authorized share repurchase programs. Cash inflows from stock plans were $2 million in the three months ended March 31, 2009 compared to $4 million in the three months ended March 31, 2008. The decrease in cash inflows was primarily due to a decrease in the number of options exercised in the three months ended March 31, 2009.
Our cash and cash equivalents totaled $717 million as of March 31, 2009. Our ability to generate positive cash flows from operations is dependent on general economic conditions, competitive pressures, and other business and risk factors described in Item 1A of Part I of the Companys 2008 Annual Report on Form 10-K. If we are unable to generate sufficient cash flows from operations, or otherwise comply with the terms of our credit facilities and senior notes, we may be required to refinance all or a portion of our existing debt or seek additional financing alternatives. Furthermore, as described in Note 13, Debt Obligations, of the Notes to the Condensed Consolidated Financial Statements, we will repay the $300 million of senior unsecured notes when they become due on June 15, 2009. In addition, as described in Note 7, Employee Benefit Plans, of the Notes to the Condensed Consolidated Financial Statements, we expect to make pension, postemployment, and postretirement plan contributions of approximately $200 million in 2009. We believe that we have sufficient liquidity based on our current cash position, cash flows from operations and existing financing to meet the June 15, 2009 repayment of the $300 million in senior unsecured notes, our expected pension, postemployment, and retirement plan contributions, and our operating requirements for the next twelve months.
Contractual and Other Commercial Commitments: There have been no significant changes in our contractual and other commercial commitments as described in our Form 10-K for the year ended December 31, 2008 other than our anticipated contributions to our global pension plans in 2010. At the end of March 2009, the U.S Treasury Department issued revised guidance which impacts our expected pension plan contributions in the U.S. We continue to expect to contribute $120 million to our global pension plans in 2009. Assuming that interest rates remain constant and 2009 asset returns are between +10% and -10%, we now expect to contribute between $120 million and $150 million to our global pension plans in 2010 as compared to the previously disclosed $200 million to $250 million.
Read the The complete ReportNCR is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Dodge & Cox.
NCR Corporation is a recognized world leader in providing Relationship Technology solutions for the retail financial communications travel and transportation and insurance markets. NCR's Relationship Technology solutions include privacy-enabled Teradata warehouses ATMs and store automation. The company's business solutions are built on the foundation of its long-established industry knowledge and consulting expertise value-adding software global customer support services a complete line of consumable and media products and world-leading hardware technology. NCR Corp. has a market cap of $1.61 billion; its shares were traded at around $10.15 with a P/E ratio of 7.1 and P/S ratio of 0.3. NCR Corp. had an annual average earning growth of 20.6% over the past 5 years.
Highlight of Business Operations:
The Company made $10 million in severance payments during the first quarter of 2009. As of March 31, 2009, there is a remaining accrued liability balance of $14 million, including the impact of $2 million related to foreign currency fluctuation, as compared to $26 million as of December 31, 2008. This liability is recorded in the Condensed Consolidated Balance Sheet in other current liabilities as the Company expects that payment of the remaining obligation will occur in 2009.Postemployment plan expense during the first quarter of 2009 decreased to $11 million from $13 million during the same time period in 2008. The decrease was driven primarily by a $1 million adjustment in the expected costs of the 2008 organizational realignment initiative. These realignment initiatives are described in more detail in the Restructuring and Re-engineering section of this MD&A.
Other income, net decreased by $7 million in the first quarter of 2009 as compared to the first quarter of 2008, primarily due to a decrease in interest income of $6 million. Other income includes items such as gains or losses on equity investments, costs and recoveries related to environmental matters that relate to businesses previously disposed of, and interest income. Interest income was $2 million in the first quarter of 2009 compared to $8 million in the first quarter of 2008. The decrease in interest income was primarily due to lower interest rates earned on excess, invested cash during the first quarter of 2009. Other income in the first quarter of 2009 included a $5 million benefit related to the settlement of insurance recoveries related to the Fox River environmental matter, which was offset by an impairment charge of $5 million related to one of NCRs equity method investments.
Financing activities and certain other investing activities are not included in our calculation of free cash flow. These other investing activities for the three months ended March 31, 2008 included net proceeds of $38 million from the sale of property, plant and equipment. Our financing activities for the three months ended March 31, 2008, included cash outflows from share repurchases of $193 million to repurchase approximately 8.7 million shares. During the first quarter of 2009, consistent with our initiatives to reduce cash outflow, we did not repurchase shares under our previously authorized share repurchase programs. Cash inflows from stock plans were $2 million in the three months ended March 31, 2009 compared to $4 million in the three months ended March 31, 2008. The decrease in cash inflows was primarily due to a decrease in the number of options exercised in the three months ended March 31, 2009.
Our cash and cash equivalents totaled $717 million as of March 31, 2009. Our ability to generate positive cash flows from operations is dependent on general economic conditions, competitive pressures, and other business and risk factors described in Item 1A of Part I of the Companys 2008 Annual Report on Form 10-K. If we are unable to generate sufficient cash flows from operations, or otherwise comply with the terms of our credit facilities and senior notes, we may be required to refinance all or a portion of our existing debt or seek additional financing alternatives. Furthermore, as described in Note 13, Debt Obligations, of the Notes to the Condensed Consolidated Financial Statements, we will repay the $300 million of senior unsecured notes when they become due on June 15, 2009. In addition, as described in Note 7, Employee Benefit Plans, of the Notes to the Condensed Consolidated Financial Statements, we expect to make pension, postemployment, and postretirement plan contributions of approximately $200 million in 2009. We believe that we have sufficient liquidity based on our current cash position, cash flows from operations and existing financing to meet the June 15, 2009 repayment of the $300 million in senior unsecured notes, our expected pension, postemployment, and retirement plan contributions, and our operating requirements for the next twelve months.
Contractual and Other Commercial Commitments: There have been no significant changes in our contractual and other commercial commitments as described in our Form 10-K for the year ended December 31, 2008 other than our anticipated contributions to our global pension plans in 2010. At the end of March 2009, the U.S Treasury Department issued revised guidance which impacts our expected pension plan contributions in the U.S. We continue to expect to contribute $120 million to our global pension plans in 2009. Assuming that interest rates remain constant and 2009 asset returns are between +10% and -10%, we now expect to contribute between $120 million and $150 million to our global pension plans in 2010 as compared to the previously disclosed $200 million to $250 million.
Read the The complete ReportNCR is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Dodge & Cox.
