Black & Decker Corporation (BDK) Ryan Stonier, Kent DeBruin, Sarada Weerasinghe, Neil Naran, and LakeyaOmogun April 18, 2007 Board of Directors NOLAN D. ARCHIBALD Chairman, President, and Chief Executive Officer CHARLES E. FENTON Senior Vice President and General Counsel
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Black & Decker Corporation(BDK)
Ryan Stonier, Kent DeBruin, Sarada Weerasinghe, Neil Naran, and LakeyaOmogun
April 18, 2007
Chairman, President, and Chief Executive Officer
Senior Vice President and General Counsel
Senior Vice President and Chief Financial Officer
Senior Vice President – Human Resources and Corporate Initiatives
Vice President and Controller
Vice President – Business Development
Vice President – Investor Relations and Treasurer
Vice President and Corporate Secretary
OCF = $622.7 M
Increased around 1.5% last 3 yrs.
Cap. Ex.=$104.6 M
Less than depreciation by about $50 M
Purchased Vector in 2006 for $158.5 M
In 2005 purchased Porter-Cable and Delta Tools Group, and sold Flex
Expects cap. spending to be $120 M in 2007
Financing CF=$(1,124.9) ; way up from past 3 years
Repurchase of stock for $896 M
Decrease in short term borrowings by $309 M
Repayment of notes of $155 M
Short-term debt very sporadic due to new contract agreements
Long-term debt very stable past 3 yrs.
5.3% of assets are intangible, has been increasing past 5 years.
51.52% of assets are short-term
Past 3 yrs. Have been above 50%
43.57% of liabilities are short-term
Down from past 2 years
Cash = $233.3 M
An inability to obtain raw materials or finished goods could affect ability to make products; or increase in price of raw materials could adversely affect manufacturing possibilities
TIE= 10.03 industry = 6.11
CR=2.703 in 2006 and 1.48 in 2005
QR = .92 is just below 10 yr. Average
Working capital = $923.8 M in 2006, $1083.4 M in 2005, and $1134.6 M in 2004
$55 M settlement in 2006
High taxes payments due
ROA is above its 5 year average
ROE is slightly above its 5 year average
ROI is above its 5 year average
Inventory turnover is about the same as it’s been
Accounts Payable Ratio = 14.06
ROA, ROE, ROI all outperformed the S&P 500 in 2006
Conclusion- Is a major competitor to Black and Decker but does not pose the greatest threat to them.
Conclusion- Is the largest player in the industry and poses the biggest threat to Black and Decker
Conclusion-Does not pose a major threat to Black and Decker in the short term future but in the long term future can be a major competitor.
Black and Decker has 3 Major customers