Cooper Industries Ltd. (CBE, Financial) filed Quarterly Report for the period ended 2009-03-31.
Cooper Industries is a diversified manufacturer marketer and seller of electrical products tools and hardware. Cooper operates facilities in countries and manufactures products serving the industrial construction and electrical distribution markets. The company manufactures electrical distribution equipment hazardous duty electrical equipment emergency lighting lighting fixtures and fuses non-power hand tools and industrial power tools chain products. Some of the company's brands include Buss Edison Crouse-Hinds Weller DGD Buckeye Cooper and Master Power. Cooper Industries Ltd. has a market cap of $5.6 billion; its shares were traded at around $33.41 with a P/E ratio of 10.4 and P/S ratio of 0.8. The dividend yield of Cooper Industries Ltd. stocks is 2.9%. Cooper Industries Ltd. had an annual average earning growth of 1.3% over the past 10 years.
Net interest expense in the first quarter of 2009 increased $0.3 million from the 2008 first quarter, primarily as a result of higher average interest rates partially offset by lower average borrowings and lower interest earned on cash invested. Average debt balances were $1.23 billion and $1.39 billion and average interest rates were 5.34% and 5.05% for the first quarter of 2009 and 2008, respectively.
Coopers operating working capital (defined as receivables and inventories less accounts payable) decreased $102.0 million during the first quarter of 2009. A $111.3 million decrease in receivables and a $31.4 million decrease in inventories, partially offset by a $40.7 million decrease in accounts payable, were driven primarily by a 19% decrease in sales and aggressive actions to right size Coopers businesses for current market conditions. Coopers operating working capital at March 31, 2009 was approximately 20% lower than at March 31, 2008 as operating working capital levels were adjusted to the current lower operating levels. Operating working capital turnover (defined as annualized revenues divided by average quarterly operating working capital) for the 2009 first quarter was 4.5 turns as compared to the 5.0 turns reported for the same period of 2008.
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.
Cash provided by operating activities was $65.2 million during the 2008 first quarter. This cash, plus $298.1 million of proceeds from a debt issuance, $284.5 million of proceeds from cash previously restricted, $29.8 million from redemption of short-term investments, $6.0 million of cash received from stock option exercises and an additional $93.6 million of cash and cash equivalents, was primarily used to fund capital expenditures of $23.6 million, acquisitions of $267.1 million, dividends of $38.2 million, debt repayments of $192.8 million and share purchases of $266.4 million.
At March 31, 2009 and December 31, 2008, Cooper had cash and cash equivalents of $303.9 million and $258.8 million, respectively and short-term investments of $15.6 million and $21.9 million, respectively. At March 31, 2009 and December 31, 2008, Cooper had short-term debt of $19.4 million and $25.6 million, respectively.
Read the The complete ReportCBE is in the portfolios of Richard Aster Jr of Meridian Fund, Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund, David Dreman of Dreman Value Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Cooper Industries is a diversified manufacturer marketer and seller of electrical products tools and hardware. Cooper operates facilities in countries and manufactures products serving the industrial construction and electrical distribution markets. The company manufactures electrical distribution equipment hazardous duty electrical equipment emergency lighting lighting fixtures and fuses non-power hand tools and industrial power tools chain products. Some of the company's brands include Buss Edison Crouse-Hinds Weller DGD Buckeye Cooper and Master Power. Cooper Industries Ltd. has a market cap of $5.6 billion; its shares were traded at around $33.41 with a P/E ratio of 10.4 and P/S ratio of 0.8. The dividend yield of Cooper Industries Ltd. stocks is 2.9%. Cooper Industries Ltd. had an annual average earning growth of 1.3% over the past 10 years.
Highlight of Business Operations:
Income from continuing operations for the first quarter of 2009 was $81.2 million on revenues of $1,256.8 million compared with 2008 first quarter income from continuing operations of $153.4 million on revenues of $1,546.1 million. First quarter diluted earnings per share from continuing operations decreased 44% to $.48 from $.86 in 2008. During the first quarter of 2009, reported income from continuing operations was reduced by restructuring charges of $8.8 million or $.04 per share. Reported income from continuing operations was favorably impacted by discrete tax items related to foreign taxes which improved reported earnings per share by $.05 per share. During the first quarter of 2008, currency related gains and discrete tax items increased earnings per share from continuing operations by $.05 per share.Net interest expense in the first quarter of 2009 increased $0.3 million from the 2008 first quarter, primarily as a result of higher average interest rates partially offset by lower average borrowings and lower interest earned on cash invested. Average debt balances were $1.23 billion and $1.39 billion and average interest rates were 5.34% and 5.05% for the first quarter of 2009 and 2008, respectively.
Coopers operating working capital (defined as receivables and inventories less accounts payable) decreased $102.0 million during the first quarter of 2009. A $111.3 million decrease in receivables and a $31.4 million decrease in inventories, partially offset by a $40.7 million decrease in accounts payable, were driven primarily by a 19% decrease in sales and aggressive actions to right size Coopers businesses for current market conditions. Coopers operating working capital at March 31, 2009 was approximately 20% lower than at March 31, 2008 as operating working capital levels were adjusted to the current lower operating levels. Operating working capital turnover (defined as annualized revenues divided by average quarterly operating working capital) for the 2009 first quarter was 4.5 turns as compared to the 5.0 turns reported for the same period of 2008.
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.
Cash provided by operating activities was $65.2 million during the 2008 first quarter. This cash, plus $298.1 million of proceeds from a debt issuance, $284.5 million of proceeds from cash previously restricted, $29.8 million from redemption of short-term investments, $6.0 million of cash received from stock option exercises and an additional $93.6 million of cash and cash equivalents, was primarily used to fund capital expenditures of $23.6 million, acquisitions of $267.1 million, dividends of $38.2 million, debt repayments of $192.8 million and share purchases of $266.4 million.
At March 31, 2009 and December 31, 2008, Cooper had cash and cash equivalents of $303.9 million and $258.8 million, respectively and short-term investments of $15.6 million and $21.9 million, respectively. At March 31, 2009 and December 31, 2008, Cooper had short-term debt of $19.4 million and $25.6 million, respectively.
Read the The complete ReportCBE is in the portfolios of Richard Aster Jr of Meridian Fund, Brian Rogers of T Rowe Price Equity Income Fund, Brian Rogers of T Rowe Price Equity Income Fund, David Dreman of Dreman Value Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
