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Cooper Industries

Gerald Rubeck Ahmet Caner

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 for corporate development 1965 - Cooper Industries

History
1967 - Lufkin Rule Company
Tool Group Acquisitions

Change in corporate strategy 1970s - Complementary Development 1975 - Robert Cizik elected as CEO 1980s - Continued Acquisitions and Divestitures 1989 - Purchase of Champion Spark Plug

Acquisitions

Divestitures

Discussion

What is Cooper Industries Business Model?

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

Value Proposition
Quality
Streamline manufacturing processes

Increase Shareholder Value


Target Earnings-Per-Share Growth Return on Equity Objective

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

Strategy
Management Diversification Acquisition Guidelines Corporate Strategy Bottom Up Strategic Planning Management Development & Planning Manufacturing Services Group

Corporate Structure
Senior Vice President of Finance Senior Vice President of Administration Senior Vice President of Manufacturing Services Chairman, President, and CEO

Major Issues
Cyclical Businesses Acquisitions - Before and After Management Development & Planning

Champion

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; 25 times 1988 EBIT Forbes described Champion as a bloated auto parts maker Champion is manufacturing with 1950s technology

Financial Status
Gross Revenue

Financial Status

Financial Status

Financial Status
1982 - Stock Price 2012 Stock Price 6.09 Usd 63.04 Usd

Financial Status
Current Ratio

Financial Status
Current Assests & Current Liabilities

Financial Status
Free Cash Flow

Financial Status
Cash Flow

Financial Status
Competitor Analysis - EPS

Financial Status
Dividend Yield

Financial Status
Return on Investment

Recommendations

Should Cooper buy Champion?