cooper industries presentation

7/27/2019 Cooper Industries Presentation

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Cooper Industries

Gerald Rubeck

Ahmet Caner


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History 1833 - C&E Cooper 1900 - Natural Gas

1929 - Cooper-Bessemer

1950s - Developed production expertise as Coo

1957 - Elected Gene Miller as president

1958 - Cyclical downturn

1961 - Robert Cizik as executive assistant forcorporate development

1965 - Cooper Industries


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History 1967 - Lufkin Rule Company

Tool Group

Change in corporate strategy

Acquisitions

1970s - Complementary Development

1975 - Robert Cizik elected as CEO

1980s - Continued Acquisitions and Divestitures

1989 - Purchase of Champion Spark Plug


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Acquisitions


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Divestitures


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Discussion

What is Cooper Industries Business Model?


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Business Model

Focus on Growth and Diversification Acquired more then 60 companies in 30 years

Cooperization

Streamline management Assumption that managers can oversee any

kind of business

Focus on products that serve basic needs


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Value Proposition

Quality Streamline manufacturing processes

Increase Shareholder Value Target Earnings-Per-Share Growth

Return on Equity Objective


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Economic Logic

Focus on Manufacturing $4.3 billion in annual revenues

Manufacturing 2 million items

Diverse range of products $.10 spark plugs

$3 million turbine compressor sets

Wide variety of brand names


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Strategy

Management Diversification

Acquisition Guidelines

Corporate Strategy

Bottom Up Strategic Planning

Management Development & Planning

Manufacturing Services Group


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Corporate Structure

Senior Vice President of Finance

Senior Vice President of

Administration

Senior Vice President of

Manufacturing Services

Chairman, President, and CEO


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Major Issues

Cyclical Businesses

Acquisitions - Before and After

Management Development & Planning

Champion


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Champion

Trumped $17.50 per share offer by Dana Corp. $21 per share; $825 million offer

Champion faced shrinking spark plug market

Champion profits had fallen to $24 million; 25times 1988 EBIT

Forbes described Champion as a bloated auto

parts maker

Champion is manufacturing with 1950s

technology


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Financial Status

Gross Revenue


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Financial Status


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Financial Status


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Financial Status

1982 - Stock Price 6.09 Usd 2012Stock Price 63.04 Usd


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Financial Status

Current Ratio


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Financial Status

Current Assests & Current Liabilities


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Financial Status

Free Cash Flow


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Financial Status

CashFlow


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Financial Status

Competitor Analysis - EPS


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Financial Status

Dividend Yield


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Financial Status

Return on Investment


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Recommendations

Should Cooper buy Champion?

cooper industries presentation

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