Post on 13-Apr-2018
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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?