This document provides a summary of Ecolab's financial performance in 2002. Some key points:
- Net income grew 10% despite challenging economic conditions through aggressive actions and new product introductions.
- Operating income increased 24% to $396 million. Excluding unusual items, pro forma operating income grew 9%.
- The company increased its annual dividend for the 11th consecutive year and completed restructuring plans.
- The discussion also covers Ecolab's critical accounting policies and estimates used in financial reporting.
This document provides an overview and analysis of Ecolab's financial performance in 2001. Key points include:
- Net sales reached $2.4 billion, a 4% increase over 2000, despite negative impacts from currency exchange rates and economic conditions.
- Operating income decreased 7% to $318 million due to higher raw material costs, sales mix changes, and general cost increases.
- Net income per share decreased 7% to $1.45, partly due to unusual gains in 2000 that did not recur in 2001.
- The company met two of its three long-term financial objectives for the year.
- The document provides an overview of Ecolab's financial performance and discussion for 2003. It discusses key factors that impacted financial results including operating performance, financial performance, currency translation, tax rates, and acquisitions.
- Ecolab exceeded its long-term financial objectives for 2003 of 15% growth in EPS, 20% return on equity, and investment grade balance sheet. Diluted EPS grew 33% to $1.06, return on equity was 25%, and debt was reduced.
- The discussion also covers critical accounting policies including revenue recognition, valuations, actuarial estimates, and taxes that require management estimates and could impact financial results.
- In the second quarter of 2011, the company reported earnings per share from continuing operations of $0.79 compared to $0.58 in the second quarter of 2010. Revenue increased 18% year-over-year.
- Fleet Management Solutions saw a 46% increase in net before tax earnings due to better commercial rental performance, improved used vehicle results, and acquisitions. Supply Chain Solutions and Dedicated Contract Carriage also saw earnings growth.
- For the first half of 2011, earnings per share from continuing operations were $1.29 compared to $0.82 for the same period last year, with revenue up 17% year-over-year.
The document provides an overview of the company's third quarter 2005 earnings conference call, including highlights such as earnings per share increasing 20% compared to the prior year, business segment results with revenue and earnings increases across all segments, and debt to equity ratios remaining below long-term targets while supporting continued growth.
The document provides an earnings presentation for Xerox's first quarter 2009 results. Key points include:
- Revenue was down 18% due to challenging economic conditions negatively impacting hardware and supplies sales.
- EPS was $0.05, in line with previous guidance.
- Cost reductions helped drive a $120 million decline in selling, administrative and general expenses.
- The company maintained a strong balance sheet and cash flow.
- Second quarter 2008 earnings per share were $1.10 compared to $1.07 in second quarter 2007. Excluding charges related to prior years in Brazil, comparable earnings per share were $1.22, up 14% year-over-year.
- Total revenue was unchanged at $1.66 billion while operating revenue increased 5% to $1.21 billion, driven by growth in the Fleet Management Solutions segment.
- Fleet Management Solutions saw a 19% increase in net earnings before tax due to improved contractual business performance and higher fuel margins. Supply Chain Solutions earnings declined 56% due to lower results in Brazil and North American automotive strikes.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue was up 8% on new business, but earnings grew 6% due to lower incentive compensation offsetting an automotive plant closure.
- Cash flow from operations was $837 million year-to-date, up from $612 million prior year. Net capital expenditures were $535 million year-to-date, down from $1.
The annual report summarizes Computacenter's financial performance in 2009. Key points include:
- Adjusted profit before tax increased 25.8% to £54.2 million.
- Net funds before customer specific financing increased £81.8 million to £86.4 million.
- The ERP implementation, a group-wide project, remained on plan and budget.
- Customers gave the company high and improved satisfaction ratings.
- The Chairman expresses satisfaction with progress made in 2009 focusing on profitability, working capital optimization, and cash flow while investing in people, processes, and systems.
This document provides an overview and analysis of Ecolab's financial performance in 2001. Key points include:
- Net sales reached $2.4 billion, a 4% increase over 2000, despite negative impacts from currency exchange rates and economic conditions.
- Operating income decreased 7% to $318 million due to higher raw material costs, sales mix changes, and general cost increases.
- Net income per share decreased 7% to $1.45, partly due to unusual gains in 2000 that did not recur in 2001.
- The company met two of its three long-term financial objectives for the year.
- The document provides an overview of Ecolab's financial performance and discussion for 2003. It discusses key factors that impacted financial results including operating performance, financial performance, currency translation, tax rates, and acquisitions.
- Ecolab exceeded its long-term financial objectives for 2003 of 15% growth in EPS, 20% return on equity, and investment grade balance sheet. Diluted EPS grew 33% to $1.06, return on equity was 25%, and debt was reduced.
- The discussion also covers critical accounting policies including revenue recognition, valuations, actuarial estimates, and taxes that require management estimates and could impact financial results.
- In the second quarter of 2011, the company reported earnings per share from continuing operations of $0.79 compared to $0.58 in the second quarter of 2010. Revenue increased 18% year-over-year.
- Fleet Management Solutions saw a 46% increase in net before tax earnings due to better commercial rental performance, improved used vehicle results, and acquisitions. Supply Chain Solutions and Dedicated Contract Carriage also saw earnings growth.
- For the first half of 2011, earnings per share from continuing operations were $1.29 compared to $0.82 for the same period last year, with revenue up 17% year-over-year.
The document provides an overview of the company's third quarter 2005 earnings conference call, including highlights such as earnings per share increasing 20% compared to the prior year, business segment results with revenue and earnings increases across all segments, and debt to equity ratios remaining below long-term targets while supporting continued growth.
The document provides an earnings presentation for Xerox's first quarter 2009 results. Key points include:
- Revenue was down 18% due to challenging economic conditions negatively impacting hardware and supplies sales.
- EPS was $0.05, in line with previous guidance.
- Cost reductions helped drive a $120 million decline in selling, administrative and general expenses.
- The company maintained a strong balance sheet and cash flow.
- Second quarter 2008 earnings per share were $1.10 compared to $1.07 in second quarter 2007. Excluding charges related to prior years in Brazil, comparable earnings per share were $1.22, up 14% year-over-year.
- Total revenue was unchanged at $1.66 billion while operating revenue increased 5% to $1.21 billion, driven by growth in the Fleet Management Solutions segment.
- Fleet Management Solutions saw a 19% increase in net earnings before tax due to improved contractual business performance and higher fuel margins. Supply Chain Solutions earnings declined 56% due to lower results in Brazil and North American automotive strikes.
- Third quarter earnings per share were $1.11, up 5% from prior year. Comparable earnings per share were $1.14, up 2%.
- Fleet Management Solutions revenue was down 1% due to lower fuel and commercial rental revenue, but contractual revenue increased. Earnings were down 10% due to commercial rental declines.
- Supply Chain Solutions revenue was up 8% on new business, but earnings grew 6% due to lower incentive compensation offsetting an automotive plant closure.
- Cash flow from operations was $837 million year-to-date, up from $612 million prior year. Net capital expenditures were $535 million year-to-date, down from $1.
The annual report summarizes Computacenter's financial performance in 2009. Key points include:
- Adjusted profit before tax increased 25.8% to £54.2 million.
- Net funds before customer specific financing increased £81.8 million to £86.4 million.
- The ERP implementation, a group-wide project, remained on plan and budget.
- Customers gave the company high and improved satisfaction ratings.
- The Chairman expresses satisfaction with progress made in 2009 focusing on profitability, working capital optimization, and cash flow while investing in people, processes, and systems.
Este documento discute la responsabilidad global, individual y empresarial para proteger el medio ambiente a través de protocolos y declaraciones. También cubre temas como la seguridad, salud y descontaminación, así como las sanciones por acciones que causaron desequilibrio ambiental como la sobrexplotación, agotamiento, caza, contaminación y radiación. Finalmente, destaca los efectos de la contaminación sobre la fauna, flora y el suelo.
DCR TrendLine shares analyses of trends and happenings in the non-employee workforce industry. The June edition looks at the impact of oil prices on employment in the oil and gas industry and trends in talent management. We continue our global series on the ASEAN region by looking at Indonesia’s slowing economy. This month also features our quarterly topic “What’s Trending in the Temp Market.” We also discuss job prospects for the graduating class of 2015. Our feature article hones in on the need for simplicity in the workforce, and provides some ways to get started. Finally, we examine the long-term economic impact of the devastating earthquakes experienced by Nepal recently
DCR National Temp Wage Index
Employment Prospects for 2015 Grads
Indonesia’s Slowing Economy and Workforce Challenges
What’s Trending in the Temp Market – Q2 of 2015
Industry Highlight: Oil and Gas Index
4 Talent Management Trends
Simplicity is the Ultimate Sophistication
Nepal Earthquake: The Long-Term Economic Impact
IPS Group Financial services presentationIPSGroupUK
IPS Group is an international recruitment business specializing in financial services and related fields. They recruit permanent, contract, and temporary employees for clients across sectors including insurance, finance, pensions, and IT. IPS Group understands candidates' skills, experience, and goals to recommend suitable career options. They pride themselves on placing top candidates in financial services jobs of all seniority levels through long-standing client relationships. Due to their expertise, IPS Group often has exclusive senior-level opportunities and an extensive network to help both companies and individuals.
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This document is a curriculum vitae for Aqeel Akhtar. It includes his contact information, career objective, educational qualifications, professional skills including programming languages and frameworks, work experience as an HTML and PHP developer from 2013 to 2015, personal details like name, date of birth, and address, and a declaration by Aqeel Akhtar that the information provided is correct. It also lists 24 websites that Aqeel has worked on.
Members share why they love the Retired Teachers of Ontario so much, including RTO/ERO's group insurance plans, award-winning publications, customer service and travel and volunteer opportunities.
Design Thinking: engage customers like never before.
Inconsistent customer interactions. Undifferentiated touch points. Indifferent customers. If these are business challenges you are facing, it’s time to take a closer look at the customer journey that your business is providing.
Join us in a hands-on, interactive session that will introduce you to a new way of thinking. Design Thinking is a user centric problem-solving mindset that combines empathy, rationality and creativity, and keeps the end-user of your product/service at the center of the design process.
These techniques are being used by the world’s most prolific innovators to deliver powerful interaction experiences across the entire customer journey.
What we covered within the workshop:
1) The basic foundations and benefits of Design Thinking as an innovation process.
2) How to start integrating Design Thinking ideas and techniques into your daily customer interactions.
3) How to use Design Thinking to draw customer journey maps and gain actionable insights.
The document provides an overview of the evolution of the electronic design automation (EDA) industry from the 1960s to present day. It discusses the three generations of EDA companies and tools. The first generation in the 1960s-1980s included companies like Calma and ComputerVision that developed specialized hardware-based tools. The second generation in the early 1980s included software-focused companies like Daisy Systems, Mentor Graphics, and Valid Logic Systems. The third generation from the late 1980s on included industry leaders Cadence, Synopsys, and Mentor Graphics, which developed modern software-based design flows and tools.
Commercial banks are for-profit financial institutions that accept deposits, grant loans, and offer other financial services. There are three main types of commercial banks in India: public sector banks controlled by the Reserve Bank of India, private sector banks registered as limited companies, and foreign banks headquartered abroad. The primary functions of commercial banks are accepting deposits, advancing loans, and creating credit, while secondary functions include cheque clearing, fund transfers, and agency services like collecting payments. Commercial banks also offer electronic banking services like debit cards, credit cards, and internet banking. The largest commercial banks in India are State Bank of India, ICICI Bank, and Punjab National Bank.
We surveyed 11,500 men and women globally to find out what they had to say about gender diversity in the workplace. This Slideshare is a snapshot of the key findings.
For more information, please visit our website: http://gender-diversity.haysplc.com/
You can also access a copy of the full report here: http://www.slideshare.net/HaysWorldwide/hays-global-gender-diversity-report-2016
Surge pricing algorithms automatically increase prices for ride-sharing services like Uber when demand is high and supply is low. This helps ensure reliability of service by incentivizing more drivers to work. While surge pricing has faced legal challenges in some areas for price gouging during emergencies, its legal status varies by location. In the US and some Indian states it is allowed if rates do not exceed government maximums, while other Indian states and countries explicitly ban surge pricing.
Cipla Global Ltd. faces the challenge of balancing its generic drug business with investments in drug discovery to become an innovator. As a large Indian generics manufacturer, Cipla relies on low-cost production but lacks resources for R&D. It could partner with Western companies on drug development and boost overseas sales through acquisitions or building distribution networks abroad. Partnering would help Cipla gain recognition as a research firm and take advantage of the large, low-cost talent pool in India to become more integrated in the global pharmaceutical industry.
HMS Group presentation, Morgan Stanley EMEA Conference (April 2011)HMS Group
This presentation was created to present HMS Group at one-on-one meetings with investors within Morgan Stanley EMEA Conference (12-14 April 2011, London & New-York).
The document summarizes the company's 1st quarter 2009 financial results. Net sales were down 28% from the previous year due to a 29.8% decline in organic sales. Gross profit excluding restructuring charges was down 33.8% and operating income turned to a loss. Both the office furniture and hearth segments experienced sales declines over 30% and operating margins decreased significantly year-over-year. The outlook provided expects continued weak demand and sales declines in the 2nd quarter with gross margins and SG&A expenses further decreasing.
The document provides an analysis of a company's third quarter 2007 financial results. Key points include:
- Sales increased 18.5% due to the Paxar acquisition, while organic sales declined slightly. Operating margins declined due to the addition of the lower-margin Paxar business.
- Reported EPS was $0.59 but included restructuring and integration charges. Adjusted EPS excludes these items.
- Guidance for full-year sales growth was increased to 12.5-13.5% and operating margin is expected to be around 9% before integration costs. EPS guidance was reiterated at $3.75-3.85.
Trina Solar held an earnings call to discuss its Q4 2012 and fiscal year 2012 performance. Key highlights included module and system shipments of 415MW and 1.6GW respectively. Revenue was $302.7 million for Q4 2012 and $1.3 billion for fiscal year 2012. Gross margins were low due to write-downs and provisions. The company provided guidance for Q1 2013 shipments of 420-430MW and fiscal year 2013 shipments of 2-2.1GW. Trina Solar has a strong balance sheet with $918 million in cash and manufacturing capacity of 2.4GW for modules and 2.4GW for cells. Regional sales breakdowns and commercial strategies were also discussed.
Nationwide had a record year in 2006, earning over $2.1 billion in net income. This performance was driven by growth across its business segments, favorable weather conditions, and lower than expected auto losses. Nationwide's property and casualty operations and financial services businesses performed well. Nationwide remains committed to helping customers protect what matters most through a variety of insurance and financial products. It continues to focus on building its capital strength and extending its customer-focused mission.
The document discusses the concept of a "storage hypervisor" which would provide a layer of abstraction between physical storage resources and applications using them, similar to how server hypervisors virtualize servers. It notes that server virtualization has proven very efficient by allowing multiple applications and operating systems to run on one physical server. A storage hypervisor could provide similar benefits by making storage from different vendors and with different protocols able to work together transparently and improve availability, speed, and utilization of storage resources. However, true storage hypervisors that provide all these capabilities in a multi-vendor environment have not been fully realized yet.
- The company reported record sales of $4.5 billion in 2005, an 8% increase over 2004. Operating income increased 11% to $542 million.
- Raw material costs increased significantly which posed a challenge, but the company effectively managed these rising costs.
- The company expects higher raw material and freight costs to continue impacting operating income in 2006 and presents an ongoing challenge.
- Revenue and earnings for the company increased in the first quarter compared to the prior year.
- Earnings per share were $0.77, up 20% from the prior year.
- The company is increasing its full year 2006 earnings forecast to a range of $3.82 to $3.97 per share.
Este documento discute la responsabilidad global, individual y empresarial para proteger el medio ambiente a través de protocolos y declaraciones. También cubre temas como la seguridad, salud y descontaminación, así como las sanciones por acciones que causaron desequilibrio ambiental como la sobrexplotación, agotamiento, caza, contaminación y radiación. Finalmente, destaca los efectos de la contaminación sobre la fauna, flora y el suelo.
DCR TrendLine shares analyses of trends and happenings in the non-employee workforce industry. The June edition looks at the impact of oil prices on employment in the oil and gas industry and trends in talent management. We continue our global series on the ASEAN region by looking at Indonesia’s slowing economy. This month also features our quarterly topic “What’s Trending in the Temp Market.” We also discuss job prospects for the graduating class of 2015. Our feature article hones in on the need for simplicity in the workforce, and provides some ways to get started. Finally, we examine the long-term economic impact of the devastating earthquakes experienced by Nepal recently
DCR National Temp Wage Index
Employment Prospects for 2015 Grads
Indonesia’s Slowing Economy and Workforce Challenges
What’s Trending in the Temp Market – Q2 of 2015
Industry Highlight: Oil and Gas Index
4 Talent Management Trends
Simplicity is the Ultimate Sophistication
Nepal Earthquake: The Long-Term Economic Impact
IPS Group Financial services presentationIPSGroupUK
IPS Group is an international recruitment business specializing in financial services and related fields. They recruit permanent, contract, and temporary employees for clients across sectors including insurance, finance, pensions, and IT. IPS Group understands candidates' skills, experience, and goals to recommend suitable career options. They pride themselves on placing top candidates in financial services jobs of all seniority levels through long-standing client relationships. Due to their expertise, IPS Group often has exclusive senior-level opportunities and an extensive network to help both companies and individuals.
Vim quod molestiae in? Pericula intellegebat an cum, vix clita feugiat admodum eu. Ad prima aeterno nonumes duo, utinam lobortis no eam, eius fabulas commune mel ut? Graecis patrioque eu vel, ea illum possim vel? Ad oporteat forensibus posidonium cum? Vel nulla dolore facilis ne, ex vix molestie posidonium sadipscing. Eu vis consetetur eloquentiam, mel iudico facete no!
This document is a curriculum vitae for Aqeel Akhtar. It includes his contact information, career objective, educational qualifications, professional skills including programming languages and frameworks, work experience as an HTML and PHP developer from 2013 to 2015, personal details like name, date of birth, and address, and a declaration by Aqeel Akhtar that the information provided is correct. It also lists 24 websites that Aqeel has worked on.
Members share why they love the Retired Teachers of Ontario so much, including RTO/ERO's group insurance plans, award-winning publications, customer service and travel and volunteer opportunities.
Design Thinking: engage customers like never before.
Inconsistent customer interactions. Undifferentiated touch points. Indifferent customers. If these are business challenges you are facing, it’s time to take a closer look at the customer journey that your business is providing.
Join us in a hands-on, interactive session that will introduce you to a new way of thinking. Design Thinking is a user centric problem-solving mindset that combines empathy, rationality and creativity, and keeps the end-user of your product/service at the center of the design process.
These techniques are being used by the world’s most prolific innovators to deliver powerful interaction experiences across the entire customer journey.
What we covered within the workshop:
1) The basic foundations and benefits of Design Thinking as an innovation process.
2) How to start integrating Design Thinking ideas and techniques into your daily customer interactions.
3) How to use Design Thinking to draw customer journey maps and gain actionable insights.
The document provides an overview of the evolution of the electronic design automation (EDA) industry from the 1960s to present day. It discusses the three generations of EDA companies and tools. The first generation in the 1960s-1980s included companies like Calma and ComputerVision that developed specialized hardware-based tools. The second generation in the early 1980s included software-focused companies like Daisy Systems, Mentor Graphics, and Valid Logic Systems. The third generation from the late 1980s on included industry leaders Cadence, Synopsys, and Mentor Graphics, which developed modern software-based design flows and tools.
Commercial banks are for-profit financial institutions that accept deposits, grant loans, and offer other financial services. There are three main types of commercial banks in India: public sector banks controlled by the Reserve Bank of India, private sector banks registered as limited companies, and foreign banks headquartered abroad. The primary functions of commercial banks are accepting deposits, advancing loans, and creating credit, while secondary functions include cheque clearing, fund transfers, and agency services like collecting payments. Commercial banks also offer electronic banking services like debit cards, credit cards, and internet banking. The largest commercial banks in India are State Bank of India, ICICI Bank, and Punjab National Bank.
We surveyed 11,500 men and women globally to find out what they had to say about gender diversity in the workplace. This Slideshare is a snapshot of the key findings.
For more information, please visit our website: http://gender-diversity.haysplc.com/
You can also access a copy of the full report here: http://www.slideshare.net/HaysWorldwide/hays-global-gender-diversity-report-2016
Surge pricing algorithms automatically increase prices for ride-sharing services like Uber when demand is high and supply is low. This helps ensure reliability of service by incentivizing more drivers to work. While surge pricing has faced legal challenges in some areas for price gouging during emergencies, its legal status varies by location. In the US and some Indian states it is allowed if rates do not exceed government maximums, while other Indian states and countries explicitly ban surge pricing.
Cipla Global Ltd. faces the challenge of balancing its generic drug business with investments in drug discovery to become an innovator. As a large Indian generics manufacturer, Cipla relies on low-cost production but lacks resources for R&D. It could partner with Western companies on drug development and boost overseas sales through acquisitions or building distribution networks abroad. Partnering would help Cipla gain recognition as a research firm and take advantage of the large, low-cost talent pool in India to become more integrated in the global pharmaceutical industry.
HMS Group presentation, Morgan Stanley EMEA Conference (April 2011)HMS Group
This presentation was created to present HMS Group at one-on-one meetings with investors within Morgan Stanley EMEA Conference (12-14 April 2011, London & New-York).
The document summarizes the company's 1st quarter 2009 financial results. Net sales were down 28% from the previous year due to a 29.8% decline in organic sales. Gross profit excluding restructuring charges was down 33.8% and operating income turned to a loss. Both the office furniture and hearth segments experienced sales declines over 30% and operating margins decreased significantly year-over-year. The outlook provided expects continued weak demand and sales declines in the 2nd quarter with gross margins and SG&A expenses further decreasing.
The document provides an analysis of a company's third quarter 2007 financial results. Key points include:
- Sales increased 18.5% due to the Paxar acquisition, while organic sales declined slightly. Operating margins declined due to the addition of the lower-margin Paxar business.
- Reported EPS was $0.59 but included restructuring and integration charges. Adjusted EPS excludes these items.
- Guidance for full-year sales growth was increased to 12.5-13.5% and operating margin is expected to be around 9% before integration costs. EPS guidance was reiterated at $3.75-3.85.
Trina Solar held an earnings call to discuss its Q4 2012 and fiscal year 2012 performance. Key highlights included module and system shipments of 415MW and 1.6GW respectively. Revenue was $302.7 million for Q4 2012 and $1.3 billion for fiscal year 2012. Gross margins were low due to write-downs and provisions. The company provided guidance for Q1 2013 shipments of 420-430MW and fiscal year 2013 shipments of 2-2.1GW. Trina Solar has a strong balance sheet with $918 million in cash and manufacturing capacity of 2.4GW for modules and 2.4GW for cells. Regional sales breakdowns and commercial strategies were also discussed.
Nationwide had a record year in 2006, earning over $2.1 billion in net income. This performance was driven by growth across its business segments, favorable weather conditions, and lower than expected auto losses. Nationwide's property and casualty operations and financial services businesses performed well. Nationwide remains committed to helping customers protect what matters most through a variety of insurance and financial products. It continues to focus on building its capital strength and extending its customer-focused mission.
The document discusses the concept of a "storage hypervisor" which would provide a layer of abstraction between physical storage resources and applications using them, similar to how server hypervisors virtualize servers. It notes that server virtualization has proven very efficient by allowing multiple applications and operating systems to run on one physical server. A storage hypervisor could provide similar benefits by making storage from different vendors and with different protocols able to work together transparently and improve availability, speed, and utilization of storage resources. However, true storage hypervisors that provide all these capabilities in a multi-vendor environment have not been fully realized yet.
- The company reported record sales of $4.5 billion in 2005, an 8% increase over 2004. Operating income increased 11% to $542 million.
- Raw material costs increased significantly which posed a challenge, but the company effectively managed these rising costs.
- The company expects higher raw material and freight costs to continue impacting operating income in 2006 and presents an ongoing challenge.
- Revenue and earnings for the company increased in the first quarter compared to the prior year.
- Earnings per share were $0.77, up 20% from the prior year.
- The company is increasing its full year 2006 earnings forecast to a range of $3.82 to $3.97 per share.
- Revenue and earnings for the company increased in the first quarter compared to the prior year.
- Earnings per share were $0.77, up 20% from the previous year.
- The company is increasing its full year 2006 earnings forecast to a range of $3.82 to $3.97 per share.
- The company reported higher third quarter earnings per share compared to the previous year, driven by revenue growth from acquisitions and organic growth.
- Fleet Management Solutions revenue increased due to higher commercial rental and fuel revenue. Earnings improved due to better commercial rental performance and acquisition benefits, though partially offset by higher costs.
- Supply Chain Solutions revenue grew from the TLC acquisition, higher volumes, and new business. Earnings increased but compensation costs rose.
- Dedicated Contract Carriage revenue increased from the Scully acquisition and fuel pass-throughs, but earnings declined as compensation and legal costs outweighed operating improvements.
This document summarizes Chevron's fourth quarter 2008 earnings conference call. It discusses Chevron's Q4 2008 earnings of $4.9 billion and earnings per share of $2.44. It also provides details on Chevron's 2008 return on capital employed, debt ratio, and share repurchases. The document reviews Chevron's Q4 2008 earnings performance across its upstream, downstream, and other segments and discusses its 2009 capital and exploratory budget and production outlook.
This document summarizes Chevron's fourth quarter 2008 earnings conference call. It discusses Chevron's Q4 2008 earnings of $4.9 billion and earnings per share of $2.44. It also provides details on Chevron's 2008 return on capital employed, debt ratio, and share repurchases. The document reviews Chevron's Q4 2008 earnings performance across its upstream, downstream, and other segments and discusses its 2009 capital and exploratory budget and production outlook.
This document provides an overview and summary of Sallie Mae's business and operations, including:
- Sallie Mae is a top originator, servicer, and collector of student loans with over 10 million customers and $169 billion in managed loans.
- It discusses strong industry trends in higher education enrollment and costs that are driving increased demand for education financing.
- Recent legislative actions and the company's various sources of funding for its student loan origination and securitization activities are also summarized.
- Key performance metrics are presented showing the historically strong credit quality of Sallie Mae's portfolio as well as the effective use of forbearance as a debt management tool for borrowers.
This presentation discusses CSX Corporation's performance and outlook. It notes that CSX has created significant shareholder value in recent years. The company is targeting double-digit growth through 2010 by executing on its strategy and continuous improvement. While the economy is moderating, the rail renaissance environment remains strong due to tight transportation capacity and pricing power. CSX is making infrastructure investments to leverage long-term growth in intermodal volumes driven by increasing port traffic. The company's capital philosophy focuses on productivity to support its goal of long-term value creation.
This presentation discusses CSX Corporation's performance and outlook. It notes that CSX has created significant shareholder value in recent years. The company is focused on delivering double-digit growth through 2010 by executing its long-term strategy and meeting new financial targets. The rail renaissance environment remains strong due to tight transportation capacity and pricing power, though the economy is moderating. CSX is making capacity investments to leverage growth around major ports and intermodal volumes. The company aims to continue its financial and operational momentum while delivering value for shareholders.
- Embraer delivered 36 jets in the second quarter of 2007, bringing total deliveries for the first half of the year to 61 aircraft.
- While industrial costs remained high due to production inefficiencies, Embraer's backlog reached a record high of $15.6 billion and the Phenom family accumulated over 460 firm orders.
- Embraer signed important deals at the 2007 Paris Air Show including orders from Lufthansa, Japan Airlines, and BRA Transportes Aéreos.
- Gross revenue for the quarter totaled R$109.8 million, a 6% increase over the previous year's quarter. Key growth indicators like revenue, net profit, and EBITDA increased.
- The number of cards processed reached 25.3 million, up 26.5% year-over-year. APs at CSU Contact increased 21.3% annually.
- For the first nine months of 2011, gross revenues totaled R$319.3 million, up 1.4% over the same period in 2010, demonstrating the company's resiliency with increasing growth and profitability.
The document provides a comparison of Equatorial's balance sheet under Brazilian GAAP and IFRS standards as of 4Q09. Key differences include adjustments to reclassify certain assets as current or non-current, adjustments to provisions, taxes, and regulatory assets and liabilities. Adopting IFRS standards resulted in decreases to reported current and non-current assets as well as current and non-current liabilities.
The Group discussed its views on the European market and implications for its future development plans. It has made progress integrating Chrysler and Fiat brands globally. It has repaid government loans early, launched new vehicles on converged architectures, and is targeting increased revenues and profits. However, the declining European market has fundamentally changed the landscape.
CP's first quarter 2009 earnings review showed:
- Revenues were down 13% due to an 18.6% decline in carloads and 22.4% drop in revenue ton-miles from volume declines and negative mix changes.
- Operating expenses were managed well through cost control initiatives, offsetting some of the revenue declines and limiting the operating income decrease to 35%.
- The company is focused on further reducing structural costs through process improvements and efficiency gains to strengthen performance.
Western Digital's revenue in Q1 FY2005 was $824 million. 59% of revenue came from OEM customers, 35% from distributors, and 6% from retailers. Geographically, 40% of revenue was from the Americas, 30% from Europe, and 30% from Asia. Worldwide headcount increased to 20,760 employees. Total inventory was $144 million with inventory turns of 20 times.
Western Digital reported revenue of $955 million for Q2 FY2005, up 16% from Q2 FY2004. 58% of revenue came from OEM customers and 35% from distributors. Geographically, 38% of revenue was from the Americas, 32% from Europe, and 30% from Asia. Hard drive unit shipments increased by 16% to 16.2 million units while worldwide headcount grew slightly to 21,565. Total inventory fell to $118 million while inventory turns improved to 27 times.
Western Digital reported Q3 FY2005 revenue of $920 million, with 56% from OEM customers, 37% from distributors, and 7% from retail. Revenue was highest in Asia at 34% of the total, followed by Americas at 36% and Europe at 30%. The number of hard drive units shipped was 15.3 million, with worldwide headcount growing to 22,426. Inventory levels increased to $136 million, with inventory turns at 22.
Western Digital reported Q4 FY2005 revenue of $940 million. 57% of revenue came from OEM customers, 38% from distributors, and 5% from retail. 37% of revenue was from the Americas, 25% from Europe, and 37% from Asia. 48% of revenue came from the top 10 largest customers. Hard drive unit shipments reached 15.8 million for the quarter. Worldwide headcount increased to 23,161 employees. Inventory levels increased to $153 million with inventory turns at 20 times.
Western Digital's revenue in Q1 FY2006 was $1.01 billion, up from $824 million in Q1 FY2005. 55% of revenue came from OEM customers, 39% from distributors, and 6% from retail. Geographically, 36% of revenue was from the Americas, 29% from Europe, and 35% from Asia. Worldwide headcount increased to 24,211 from 20,760 in Q1 FY2005. Total inventory, net increased to $173 million from $144 million in Q1 FY2005.
Western Digital reported revenue of $1.117 billion for Q2 FY2006, up 11% from the same period last year. Approximately 56% of revenue came from OEM customers and 39% from distributors. Geographically, revenue declined in the Americas to 32% while rising in Europe to 34% and remaining flat in Asia at 34%. Inventory levels increased to $168 million but inventory turns improved to 21 turns.
Western Digital Corporation's Q3 FY2006 financial results show that hard drive unit shipments increased to 18.8 million, revenue was $1.129 billion with an average selling price of $60 per unit, and gross margin was 19.3%. Revenue was split 53% from OEMs, 40% from distributors, and 7% from retail, with the largest geographic regions being the Americas at 39%, Europe at 27%, and Asia at 34%. Cash flow from operations was $119 million.
Western Digital Corporation reported its financial results for the fourth quarter of fiscal year 2006, with total revenue of $1.086 billion. The average selling price of hard drives declined to $56 per unit from $60 in the previous quarter. Gross margin was 18.8% and cash flow from operations was $126 million. Worldwide headcount increased to 24,750 employees. Total inventory increased to $205 million while inventory turns declined to 17 turns.
Western Digital reported higher unit shipments and revenue in Q1 FY2007 compared to the same quarter last year. Revenue increased by $254 million to $1.264 billion due to a 22% increase in hard drive unit shipments. Gross margin declined slightly to 17.3% and revenue from OEM customers decreased to 52% of total revenue. Cash flow from operations was $128 million and inventory levels increased by $11 million from the previous quarter to $216 million.
Western Digital reported increased revenue and unit shipments in Q2 FY2007 compared to the same period last year. Revenue grew 28% to $1.428 billion while unit shipments increased 36% to 24.5 million units. Gross margin improved slightly to 17.9% and worldwide headcount grew 9% to over 27,000 employees. Inventories also increased due to higher finished goods and work in process levels.
Western Digital reported its Q3 FY2007 financial results. While unit shipments remained steady at 24.5 million, revenue declined slightly to $1.41 billion. Gross margins decreased to 15.8% due to pricing pressures. Cash flow from operations was $164 million. Inventory levels increased but inventory turns improved to 20 times.
Western Digital Corporation's Q4 FY2007 investor information summary shows that the company's hard drive unit shipments increased slightly compared to Q3 FY2007, but revenue and average selling price declined. Gross margin also decreased from the prior quarter. The company's largest customers - representing 48% of revenue - continued to be OEMs, distributors, and retailers. Cash flow from operations and inventory levels increased from Q3 FY2007.
Western Digital reported higher revenue and unit shipments in Q1 FY2008 compared to the same period last year. Revenue increased 40% to $1.77 billion driven by a 7% increase in average selling price and 29% more hard drive units shipped. Gross margin improved to 18.3% from 17.3% a year ago. Total inventory increased significantly to support future demand, leading to lower inventory turns. Capital expenditures also increased substantially to $163 million to expand production capacity.
Western Digital reported revenue of $2.2 billion for Q2 FY2008, a 25% increase from the previous quarter. Gross margins improved to 23.3% as average selling prices increased to $61 per hard drive unit. Inventory levels remained steady at $459 million while inventory turns improved to 15 times. Worldwide headcount grew modestly to 42,534 employees.
Western Digital Corporation provides a quarterly investor information summary including key metrics such as hard drive unit shipments, revenue, average selling prices, gross margins, revenue by channel and geography, cash flow from operations, inventory levels, and number of employees. For the third quarter of fiscal year 2008, the company shipped 34.5 million hard drive units, generated $2.11 billion in revenue, and had a gross margin of 22.6%.
Western Digital reported revenue of $1.993 billion in Q4 FY2008, down from $2.111 billion in the previous quarter. Their average hard drive selling price was $56 and gross margin was 21.3%. Over half of revenue came from OEM customers, while Asia accounted for 46% of geographic revenue. Total inventory was $456 million with inventory turns of 14 times.
Western Digital reported revenue of $2.1 billion for Q1 FY2009, up slightly from the previous year. Average selling prices for hard drives declined to $53 per unit from $56 in the previous quarter. Gross margins decreased to 20.1% as production costs increased. Revenue from Asia grew and now makes up 48% of total revenue, while the Americas saw a decline to 23% of revenue. The company's workforce grew to 51,409 employees worldwide.
Western Digital reported Q2 FY2009 revenue of $1.823 billion, down 15% from the previous year. Revenue from OEM customers was 57% of total, down from 48% the previous year. The Asia region accounted for 48% of revenue, up from 36% the previous year. Gross margin declined to 15.9% from 23.3% the previous year. Cash flow from operations was $300 million and days sales outstanding was 46 days.
Western Digital Corporation is a leading manufacturer of hard disk drives. In fiscal year 1995, the company achieved record revenues and earnings despite intense competition. It gained market share in hard drives, improved its financial position, and received an ISO 9001 quality certification. Looking forward, Western Digital is expanding its hard drive production capacity and entering new high-performance, high-capacity hard drive markets. It aims to take advantage of growth opportunities through investment in research and development.
Western Digital Corporation is a leading manufacturer of hard drives. In 1996, the company reported record revenues and unit shipments, gained market share, and introduced new enterprise hard drives. Despite significant investments, Western Digital remains debt-free with strong cash flow and financial position. The company expects continued growth in the hard drive market and is well-positioned with efficient operations and quality products to capitalize on opportunities.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
1. discussion
Financial
The following discussion and analysis provides information that manage-
Return on Beginning Equity Total Return to Shareholders
ment believes is useful in understanding Ecolab’s operating results, cash
flows and financial position. The discussion should be read in conjunction
(Percent) (Percent)
with the consolidated financial statements and related notes.
34.9% 31.9%
24.3%
21.0%
Forward-Looking Statements 27.1%
28.6%
25.5% 24.9% 23.8%
11.6%
This financial discussion and other portions of this Annual Report to 9.3%
(5.6)%
Shareholders contain various “Forward-Looking Statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These
(9.1)%
include expectations concerning business progress and expansion, business (11.9)%
acquisitions, debt repayments, susceptibility to changes in technology, (23.4)%
1998 1999 2000 2001 2002 1998 1999 2000 2001 2002
global economic conditions and liquidity requirements. These statements,
which represent Ecolab’s expectations or beliefs concerning various future Net income divided by beginning equity. Share appreciation plus dividends
S&P 500 Total Return
events, are based on current expectations. Therefore, they involve a number
of risks and uncertainties that could cause actual results to differ materially
(i) a transitional impairment charge from the adoption of Statement of
from those of such Forward-Looking Statements. These risks and uncertain-
Financial Accounting Standards (SFAS) No. 142 of $4.0 million after tax
ties include the vitality of the hospitality, foodservice and travel industries;
($0.03 per diluted share), (ii) a one-time gain from benefit plan changes of
restraints on pricing flexibility due to competitive factors and customer and
$3.5 million after tax ($0.03 per diluted share), (iii) special charges related
vendor consolidations; changes in oil or raw material prices or unavailability
to restructuring and the integration of European operations of $32.4 million
of adequate and reasonably priced raw materials; the occurrence of capacity
after tax ($0.25 per diluted share) and (iv) a gain from discontinued opera-
constraints or the loss of a key supplier; the effect of future acquisitions
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tions of $1.9 million after tax ($0.01 per diluted share). Comparison of
or divestitures or other corporate transactions; the company’s ability to
results with those of 2001 is also affected by the adoption of SFAS No. 142
achieve plans for past acquisitions; the costs and effects of complying with:
(the elimination of goodwill amortization) and the acquisition and consolida-
(i) laws and regulations relating to the environment and to the manufacture,
tion of the former European joint venture at the end of 2001. If the European
storage, distribution, efficacy and labeling of the company’s products and (ii)
operations had been consolidated with Ecolab for 2001, the effect would
changes in tax, fiscal, governmental and other regulatory policies; economic
20
have been an increase in diluted income per share of $0.03 for 2001. In
factors such as the worldwide economy, interest rates and currency move-
addition, if SFAS No. 142 had been applied to 2001 operating results,
ments, including, in particular, the company’s exposure to foreign currency
ECOLAB
including the joint venture on a consolidated basis, diluted income per
risk; the occurrence of (a) litigation or claims, (b) the loss or insolvency of
common share would have increased by $0.15 for 2001. Excluding the
a major customer or distributor, (c) war, (d) natural or manmade disasters
items previously mentioned from both 2002 and 2001, diluted income per
(including material acts of terrorism or other hostilities which impact the
share from ongoing operations on a pro forma basis increased 13 percent
company’s markets) and, (e) severe weather conditions affecting the food-
to $1.84 in 2002 from $1.63 in 2001.
service, hospitality and travel industries; loss of, or changes in, executive
s Return on beginning shareholders’ equity was 24 percent for 2002
management; the company’s ability to continue product introductions and
compared with 25 percent in 2001. Adjusting for the unusual items in
technological innovations; and other uncertainties or risks reported from
2002, return on beginning shareholders’ equity was 27 percent. This
time-to-time in the company’s reports to the Securities and Exchange
was the eleventh consecutive year the company exceeded its long-term
Commission. In addition, the company notes that its stock price can be
financial objective of a 20 percent return on beginning shareholders’ equity.
affected by fluctuations in quarterly earnings. There can be no assurances
s The company maintained its debt rating within the “A” categories of the
that the company’s earnings levels will meet investors’ expectations.
major rating agencies during 2002.
s For the third consecutive year, as well as for the past ten out of twelve
2002 Overview
years, the company’s stock price out performed the Standard & Poor’s 500
In 2002, Ecolab achieved a strong financial performance, posting double-
index. Ecolab’s stock price increased 23 percent during 2002 compared with
digit net income growth, strong cash flow increases, a healthy return on
a decrease of 23 percent in the Standard & Poor’s 500 index. Including cash
investment and an improved balance sheet. Moreover, the company did
dividends, Ecolab’s total return to shareholders was 24 percent for 2002.
this against a challenging global economic environment, utilizing aggres-
s Net sales for 2002 reached an all-time high of $3.4 billion and increased
sive actions, new product and service introductions and the effective
47 percent over 2001. Net sales for 2002 include sales of $0.9 billion for
implementation of its successful Circle the Customer – Circle the Globe
European operations, which was acquired as of year-end 2001. Net sales
growth strategy to expand its market potential. The following discusses
for 2002 increased 7 percent compared with pro forma sales for 2001,
these actions and others in more detail:
including the European joint venture.
s Diluted net income per share was $1.60 for 2002, up 10 percent from
$1.45 in 2001. Several unusual items affect the comparability in 2002 and
2001 net income and earnings per share. For 2002, these items include
2. s Operating income was $396 million for 2002, an increase of 24 percent customer incentive offerings, possibly resulting in a reduction of gross
from $318 million in 2001. This includes operating income of $84 million profit margins at the time the incentive is offered.
for European operations. Operating income represented 11.6 percent of net Management estimates sales returns and allowances by analyzing his-
sales, down from last year’s 13.7 percent. Excluding unusual items (special torical returns and credits, and applies these trend rates to the most recent
charges in 2002 and elimination of goodwill amortization and consolidation 12 months’ sales data to calculate estimated reserves for future credits.
of the European joint venture in 2001), pro forma operating income for Management estimates the allowance for doubtful accounts by analyzing
2002 increased 9 percent over 2001. Pro forma operating income was accounts receivable balances by age, applying historical trend rates to the
13.0 percent of net sales in 2002 compared with 12.7 percent in 2001. most recent 12 months’ sales, less actual write-offs to date. In addition,
s The company increased its annual cash dividend rate for the eleventh management’s estimates also include separately providing for 100 percent
consecutive year. The cash dividend was increased 7 percent in December of specific customer balances when it is deemed probable that the balance
2002 to an annual rate of $0.58 per common share. is uncollectible. Actual results could differ from these estimates under dif-
s During 2002, the company completed the plans announced in early ferent assumptions.
2002 to undertake restructuring and cost saving actions and activities Management’s current estimated ranges of liabilities related to pending
to integrate the newly acquired European operations. The company’s 2002 litigation and environmental claims are based on management’s best esti-
results also include the impact of acquisitions completed during the year, mate of probable future costs. The company has recorded the amounts
including Audits International, Kleencare Hygiene and Terminix, Ltd., in that represent the points in the ranges that management believes are most
order to continue to broaden its product and service offerings in line with probable or the minimum amounts when no amount within the range is a
its Circle the Customer – Circle the Globe strategy. better estimate than any other amount. Potential insurance reimbursements
are not anticipated in the company’s accruals for environmental liabilities.
Critical Accounting Policies and Estimates While the final resolution of litigation and environmental contingencies
Management’s discussion and analysis of its financial condition and results could result in amounts different than current accruals, and therefore
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of operations are based upon the company’s consolidated financial state- have an impact on the company’s consolidated financial results in a future
ments, which have been prepared in accordance with accounting principles reporting period, management believes the ultimate outcome will not have
generally accepted in the United States of America. The preparation of these a significant effect on the company’s consolidated results of operations,
financial statements requires management to make certain estimates and financial position or cash flows.
assumptions that affect the reported amounts of assets and liabilities as Pension and other postretirement benefit obligations are actuarially
21
of the date of the financial statements and the reported revenues and determined. These calculations include assumptions related to the discount
expenses during the reporting period. Management bases these estimates rate, projected salary and health care increases and the expected return
ECOLAB
on historical experience and various other evidence and assumptions that on assets. The company is self-insured in North America for most workers
are believed to be reasonable under the circumstances, the results of which compensation, general liability and automotive liability losses subject to
form the basis for making judgments about the recorded values of certain per occurrence and aggregate annual liability limitations. The company is
assets and liabilities. Actual results could differ from these estimates. insured for losses in excess of these limitations. The company is also self-
Management believes the company’s critical accounting policies and insured for health care claims for eligible participating employees subject
areas that require more significant judgments and estimates used in the to certain deductibles and limitations. The company determines its liabili-
preparation of its consolidated financial statements to be: ties for claims incurred but not reported on an actuarial basis. A change in
s revenue recognition, including the effects of customer based programs these assumptions could cause actual results to differ from those reported.
and incentives; Management judgment is required in determining the provision for
s estimating valuation allowances and accrued liabilities, specifically sales income taxes, deferred tax assets and liabilities and any valuation allowance
returns and allowances, the allowance for doubtful accounts and litigation recorded against net deferred tax assets. As part of the process of preparing
and environmental accruals; the company’s consolidated financial statements, management is required
s the determination of actuarially determined liabilities related to pension to estimate income taxes in each of the jurisdictions in which the company
plans, other postretirement benefit obligations and self-insurance reserves; operates. This process involves estimating actual current tax exposure
s accounting for income taxes; together with assessing temporary differences resulting from differing treat-
s valuation and useful lives of long-lived and intangible assets; and ment of items for tax and book accounting purposes. These differences
s determining functional currencies for the purpose of consolidating our result in deferred tax assets and liabilities, which are included within the
International operations. company’s consolidated balance sheet. Management must then assess
The company recognizes revenue on product sales at the time title the likelihood that deferred tax assets will be recovered from future taxable
transfers to the customer. The company records estimated reductions to income and to the extent management believes that recovery is not likely,
revenue for customer programs and incentive offerings including pricing a valuation allowance must be established. To the extent that a valuation
arrangements, promotions and other volume-based incentives. If market allowance is established or increased, an expense within the tax provision
conditions were to decline, the company may take actions to increase is included in the statement of operations.
3. Financial discussion
Management periodically reviews its long-lived and intangible assets for Financial results for 2002 include several unusual items, most notably
impairment and assesses whether significant events or changes in business (i) a transitional impairment charge from the adoption of SFAS No. 142,
circumstances indicate that the carrying value of the assets may not be (ii) a one-time gain from benefit plan changes, (iii) special charges related
recoverable. An impairment loss is recognized when the carrying amount of to restructuring and the integration of European operations and (iv) a gain
an asset exceeds the anticipated future undiscounted cash flows expected from discontinued operations. Comparison of results with those of 2001 is
to result from the use of the asset and its eventual disposition. The amount also affected by the adoption of SFAS No. 142 (the elimination of goodwill
of the impairment loss to be recorded, if any, is calculated by the excess of amortization) and the acquisition and consolidation of the former European
the asset’s carrying value over its estimated fair value. Management also joint venture at the end of 2001. The company has published certain histor-
periodically reassesses the estimated remaining useful lives of its long-lived ical unaudited pro forma financial information for 2001 to assist investors
assets. Changes to estimated useful lives would impact the amount of in understanding the pro forma effects of the adoption of SFAS No. 142,
depreciation and amortization expense recorded in earnings. and the acquisition of the former European joint venture, as well as the
In 2002, SFAS No. 142, “Goodwill and Other Intangible Assets” became effects of certain reclassifying adjustments.
effective and as a result, the company ceased to amortize goodwill in In connection with adopting Emerging Issues Task Force (EITF) 01-09,
2002. The company estimates the impact of discontinuing the amortization Accounting for Consideration Given by a Vendor to a Customer, the company
of goodwill to have increased net income by approximately $28.8 million, reclassified certain customer incentive costs from selling, general and
or $0.22 per diluted share for the year ended December 31, 2002. The administrative expenses to a component of revenue at the beginning of
company was required to perform an initial impairment review of its good- 2002. Prior year results have been reclassified for consistency purposes,
will in 2002 under the guidelines of SFAS 142. The result of testing good- the impact of which decreased previously reported revenue by approximately
will for impairment was a non-cash charge of $4.0 million ($0.03 per $34 million for each of the years ended December 31, 2001 and 2000. Also,
share). All of the impairment charge relates to the Africa/Export reporting at the beginning of 2002, the company reclassified repair part costs from
unit due to the difficult economic environment in that region. Management selling, general and administrative expenses to cost of sales. Prior year
has continued to review its goodwill for impairment on a reporting unit costs have been reclassified to increase cost of sales by $31 million for
basis under the guidelines of SFAS No. 142 on an annual basis. 2001 and $30 million for 2000. These reclassifications had no impact on
In preparing the consolidated financial statements, the company is previously reported net income or shareholders’ equity. The following man-
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required to translate the financial statements of its foreign subsidiaries from agement discussion reflects these reclassifications.
the currency in which they keep their accounting records, generally the local The non-GAAP financial measures included in the following tables are
currency, into United States dollars. Assets and liabilities of these operations not presented pursuant to Article 11 (pro forma financial information) of
are translated at the exchange rates in effect at each fiscal year end. The Regulation S-X and should be read in conjunction with the reported results
translation adjustments related to assets and liabilities that arise from the determined in accordance with accounting principles generally accepted
22
use of differing exchange rates from period to period are included in accu- in the United States of America. They are provided to assist in the reader’s
mulated other comprehensive loss in shareholders’ equity. Income statement understanding of the impact of unusual items on the comparability of the
ECOLAB
accounts are translated at the average rates of exchange prevailing during company’s operations for the years ended December 31, 2002 and 2001.
the year. The different exchange rates from period to period impact the The tables below reconcile as reported amounts (U.S. GAAP amounts) to pro
amount of reported income from the company’s International operations. forma amounts as adjusted for special charges related to the restructuring
and integration of European operations, a one-time gain from benefit plan
Operating Results changes, a transitional impairment charge from the adoption of SFAS No. 142
and a gain from discontinued operations.
Consolidated
Supplemental 2002 Pro Forma Consolidated
(thousands, except per share) 2002 2001 2000 Operating Results Information
Net sales $3,403,585 $2,320,710 $2,230,661 Excluding
Year Ended December 31, 2002 Unusual Unusual
Operating income $ 395,866 $ 318,179 $ 343,139
(thousands, except per share) Total Items* Items
Income
Operating income $ 395,866 $ 46,008 $ 441,874
Continuing operations
Interest expense, net (43,895) (43,895)
before change in accounting $ 211,890 $ 188,170 $ 208,555
Income before income taxes 351,971 46,008 397,979
Change in accounting (4,002) (2,428)
Provision for income taxes (140,081) (17,121) (157,202)
Discontinued operations 1,882
Change in accounting (4,002) 4,002
Net income $ 209,770 $ 188,170 $ 206,127
Discontinued operations 1,882 (1,882)
Diluted income per common share
Net income $ 209,770 $ 31,007 $ 240,777
Continuing operations
before change in accounting $ 1.62 $ 1.45 $ 1.58 Diluted net income per
common share $ 1.60 $ 0.24 $ 1.84
Change in accounting (0.03) (0.02)
Discontinued operations 0.01 * Unusual items include special charges related to restructuring activities and the integration
of European operations of $51.8 million, a one-time gain from benefit plan changes of $5.8
Net income $ 1.60 $ 1.45 $ 1.56
million, a change in accounting for the transitional impairment charge from the adoption of
SFAS No. 142 of $4.0 million and a gain from discontinued operations of $1.9 million.
4. global workforce during 2002, the closing of several facilities, the discontin-
Supplemental Diluted Earnings Per Share Information
uance of selected product lines and other actions. The expected cost savings
2002
(Diluted earnings per share) 2001
related to restructuring activities began in 2002 and are expected to have
Pro forma income from ongoing operations $ 1.84 $ 1.63
their full impact beginning in 2003. Restructuring savings were approx-
Pro forma adjustments:
imately $16 million ($10 million after tax, or $0.08 per diluted share) in 2002.
Acquisition of European joint venture (0.03)
Beginning in 2003, the company expects annual pretax savings of $25 mil-
Adoption of SFAS No. 142 – to eliminate
lion to $30 million ($15 million to $18 million after tax). The company expects
goodwill amortization (0.15)
to reinvest some of these savings in the business. Further details related to
Special charges (0.25)
these restructuring expenses are included in Note 3 of the notes to consoli-
One-time gain from benefit plan changes 0.03
dated financial statements.
Adoption of SFAS No. 142 – transitional
impairment charge (0.03) Operating income for 2002 was $396 million and increased by 24 per-
Discontinued operations 0.01 cent over operating income of $318 million in 2001. As a percentage of net
Net income, as reported $ 1.60 $ 1.45 sales, operating income was 11.6 percent compared with 2001 operating
income of 13.7 percent on an as reported basis. Excluding special charges,
Consolidated net sales reached $3.4 billion for 2002, an increase of operating income for 2002 was $442 million, or 13.0 percent of net sales.
47 percent over net sales of $2.3 billion in 2001. Business acquisitions, This compared to 2001 pro forma operating income (reflecting the consolida-
primarily the acquisition of the European joint venture, contributed to the tion of the European joint venture and elimination of goodwill amortization)
overall sales growth for 2002. Excluding acquisitions, primarily the European of $404 million, or 12.7 percent of net sales. This comparison of operating
joint venture, consolidated net sales increased 4 percent in 2002. Sales income margins reflects tight cost controls, savings from cost reduction
growth was experienced in most of the company’s divisions. Changes in initiatives, and the sale of new products.
currency translation negatively impacted the consolidated sales growth In addition to continuing operations, a legal issue related to the disposal
rate by approximately 1 percentage point for 2002. Sales results reflected of a business in 1992 was resolved during 2002, resulting in the recogni-
aggressive selling efforts, the benefits of investments in sales force training tion of a gain from discontinued operations of approximately $1.9 million
and productivity tools, and new products, which were partially offset by the (net of income tax benefit of $1.1 million) or $0.01 per diluted share.
TURN IT UP
poor economic environment. The company’s net income for 2002 was $210 million. Net income
The company’s consolidated gross profit margin was 50.4 percent of net included restructuring charges of $32.4 million after tax, a curtailment gain
sales for 2002, which decreased from a gross profit margin of 51.7 percent of $3.5 million after tax, a gain from discontinued operations of $1.9 million
in 2001. Cost of sales included restructuring costs of $9.0 million for the after tax and a SFAS No. 142 transitional impairment charge of $4.0 million
year ended December 31, 2002. Excluding these restructuring charges, the after tax. Excluding these items, after-tax income for 2002 was $241 mil-
23
gross profit margin was 50.7 percent for 2002. The gross profit margin was lion, an increase of 28 percent over net income of $188 million in 2001.
also negatively affected by the acquisition and consolidation of the European This improvement reflected good operating income growth in most of the
ECOLAB
joint venture. The gross profit margin for 2001 on a pro forma basis (reflect- divisions, the additional operating income generated by the acquisition of
ing the European joint venture on a consolidated basis) was 50.2 percent. the European joint venture and the elimination of goodwill amortization. This
Ecolab’s gross profit margin benefited from product mix improvements and was partially offset by higher net interest expense due to increased borrow-
cost reduction actions. ings primarily to finance the company’s acquisition of the European joint ven-
Selling, general and administrative expenses for 2002 were 37.7 per- ture. Currency translation benefited diluted net income by $0.02 per share for
cent of net sales, a decrease from total selling, general and administrative 2002. As a percentage of net sales, after-tax income for 2002 was 6.2 per-
expenses of 38.0 percent of net sales in 2001. The selling, general and cent. Excluding the unusual items previously mentioned, after-tax income
administrative expense margin on a pro forma basis (reflecting the consoli- for 2002 was 7.1 percent of net sales, down from 8.1 percent in 2001 due
dation of the European joint venture and the elimination of goodwill amortiza- to the addition of Europe.
tion) for 2001 was 37.5 percent. This increase in 2002 over the prior year is
2001 compared with 2000
partially due to stronger sales and income, which resulted in higher commis-
The non-GAAP financial measures included in the following table are
sions and incentive-based compensation. This increase was partially offset
not presented pursuant to Article 11 (pro forma financial information) of
by tight cost controls and savings related to restructuring activities in 2002.
Regulation S-X and should be read in conjunction with the reported results
During the first quarter of 2002, management approved various restruc-
determined in accordance with accounting principles generally accepted
turing and other cost-saving actions, including costs to integrate the
in the United States of America. It is provided to assist in the reader’s under-
company’s European operations, in order to streamline and improve the
standing of the impact of unusual items on the comparability of the com-
company’s global operations. These actions resulted in pre-tax charges of
pany’s operations for the year ended December 31, 2000. The table below
$51.8 million ($32.4 million after tax, or $0.25 per diluted share) in 2002.
reconciles as reported amounts (U.S. GAAP amounts) to pro forma amounts
These charges were partially offset by a curtailment gain of $5.8 million
as adjusted for the gain on the sale of Jackson, special charges and the
($3.5 million after tax, or $0.03 per diluted share) attributable to certain
cumulative effect of a change in accounting for revenue recognition.
benefit plan changes. The restructuring included a reduction of the company’s
5. Financial discussion
The company’s net income for 2001 was $188 million, a decrease of
Supplemental 2000 Pro Forma Consolidated
9 percent compared with net income of $206 million for 2000. Excluding
Operating Results Information
the unusual items from 2000, net income for 2001 decreased 5 percent
Excluding
from $198 million. The decrease in net income reflected the effects of a
Year Ended December 31, 2000 Unusual Unusual
(thousands, except per share) Total Items* Items difficult economic environment, lower gross margins, higher net interest
Operating income $ 343,139 $(18,788) $ 324,351 expense, lower equity in the earnings of Henkel-Ecolab and the negative
Interest expense, net (24,605) (24,605) impact of foreign currency translation. As a percentage of net sales, after-
Income before income taxes 318,534 (18,788) 299,746 tax income for 2001 was 8.1 percent, down from 8.9 percent in 2000,
Provision for income taxes (129,495) 8,111 (121,384)
excluding the unusual items previously mentioned.
Equity in earnings of Henkel-Ecolab 19,516 19,516
Change in accounting (2,428) 2,428
Operating Segment Performance
Net income $ 206,127 $ (8,249) $ 197,878
Diluted net income per (thousands) 2002 2001 2000
common share $ 1.56 $ (0.06) $ 1.50
Net sales
* Unusual items include the gain on the sale of the Jackson MSC, Inc. business of $25.9 mil-
United States
lion, special charges of $7.1 million and the cumulative effect of a change in accounting for
Cleaning & Sanitizing $1,615,171 $1,548,882 $1,498,381
revenue recognition of $2.4 million.
Other Services 308,329 273,020 248,317
Consolidated net sales reached $2.3 billion for 2001, an increase of Total United States 1,923,500 1,821,902 1,746,698
4 percent over net sales of over $2.2 billion in 2000. Sales increased in International Cleaning
& Sanitizing 1,427,418 472,113 420,031
nearly all of the company’s divisions. Business acquisitions also contributed
Total 3,350,918 2,294,015 2,166,729
to the overall sales growth for 2001. Businesses acquired in 2001 and the
Effect of foreign currency
annualized effect of businesses acquired and disposed of in 2000 accounted
translation 52,667 26,695 63,932
for approximately 2 percentage points of the growth in consolidated sales Consolidated $3,403,585 $2,320,710 $2,230,661
for 2001. Changes in currency translation negatively impacted the consoli- Operating income
TURN IT UP
dated sales growth rate by approximately 2 percentage points for 2001. United States
Sales results reflected benefits from aggressive sales efforts, new account Cleaning & Sanitizing $ 271,838 $ 246,936 $ 249,182
growth, new products, and additional programs to solve customer cleaning Other Services 33,051 29,338 25,515
needs. These benefits were partially offset by a poor economic environment Total United States 304,889 276,274 274,697
and a slowdown in the travel and hospitality markets following the International Cleaning
& Sanitizing 131,376 44,181 41,399
September 11 terrorist attacks.
24
Total 436,265 320,455 316,096
The company’s consolidated gross profit margin was 51.7 percent of
Corporate (46,008) (4,938) 18,491
ECOLAB
net sales for 2001, which decreased from a gross profit margin of 52.6
Effect of foreign currency
percent in 2000. The comparison reflected lower fuel costs and restructur-
translation 5,609 2,662 8,552
ing costs in 2001. These effects were offset by increased raw material
Consolidated $ 395,866 $ 318,179 $ 343,139
costs, unfavorable sales mix, fixed costs growing faster than unit volume, Operating income as a percent
foreign currency effects and general cost increases. of net sales
Selling, general and administrative expenses for 2001 were 38.0 per- United States
cent of net sales, a decrease from total selling, general and administrative Cleaning & Sanitizing 16.8% 15.9% 16.6%
expenses of 38.2 percent of net sales in 2000. Selling, general and admin- Other Services 10.7 10.7 10.3
istrative expenses in 2000 included $4.4 million of income for reductions Total 15.9 15.2 15.7
International Cleaning
in probable losses related to certain environmental matters partially offset
& Sanitizing 9.2% 9.4% 9.9%
by $4 million of expenses related to a large distributor. Selling, general and
administrative expense improvements for 2001 primarily reflected the bene- The company’s operating segments have similar products and services and
fits of a tighter focus on discretionary costs and synergies from acquisitions, the company is organized to manage its operations geographically. The
which were partially offset by investments in the sales and service force, company’s operating segments have been aggregated into three reportable
investments in acquisitions and increased retirement plan and medical costs. segments: United States Cleaning & Sanitizing, United States Other Services,
Operating income for 2001 was $318 million and decreased 7 percent and International Cleaning & Sanitizing. The company evaluates the perfor-
from $343 million in 2000. This is a decrease of 2 percent from 2000 when mance of its International operations based on fixed management rates
excluding the unusual items that occurred during 2000. Business acquisi- of currency exchange. Therefore, International sales and operating income
tions had a minimal effect on operating income for 2001. As a percentage totals, as well as the International financial information included in this
of net sales, operating income was 13.7 percent compared with 2000 financial discussion, are based on translation into U.S. dollars at the fixed
operating income of 14.5 percent, excluding unusual items. This decrease currency exchange rates used by management for 2002. All other account-
in operating income reflects the poor economic environment and a slow- ing policies of the reportable segments are consistent with accounting prin-
down in the travel and hospitality markets. ciples generally accepted in the United States of America and the accounting
6. policies of the company described in Note 2 of the notes to consolidated reflected good growth driven primarily by the non-travel portion of the
financial statements. Additional information about the company’s reportable business. Trends in sales to the travel related business showed improve-
segments is included in Note 16 of the notes to consolidated financial state- ment over the course of 2002. Sales of Kay’s U.S. operations increased
ments. The following chart presents the comparative percentage change in over the prior year with strong growth in both its food retail business and
net sales for each of the company’s operating segments (excluding Europe) sales to the quickservice market. Textile Care sales increased from the
for 2002 and 2001. European operations have been excluded since they prior year due to increased sales to existing customers as well as sales
were consolidated for the first time in 2002, making percentage compar- to new customers. Professional Products sales decreased in 2002 due to
isons not applicable. both a decline in the core sales of the Janitorial market and a decrease in
the non-core specialty business reflecting a planned restructuring of the
Percent Change JaniSource business. Professional Products’ sales, however, were positively
Sales Growth Information From Prior Year
impacted at the end of 2002 due to a long-term supply agreement that
2002 2001
became effective in December 2002. Water Care Services sales decreased
Net sales
from the prior year due to customer cost cutting and consolidations. Water
United States Cleaning & Sanitizing
Care also continues to exit non-core markets. Vehicle Care sales growth for
Institutional 6% 3%
2002 was primarily due to new business with major oil companies as well
Kay 9 8
as new product introductions. Food & Beverage sales increased slightly
Textile Care 3 (5)
from the prior year with good growth in sales to the dairy, beverage and
Professional Products (4) 7
meat and poultry markets which were offset by weak Agri sales.
Water Care Services (3) 5
Vehicle Care 3 9
Food & Beverage 1 1
United States Other Services
Total United States Cleaning & Sanitizing 4% 3%
United States Other Services Sales (Dollars in millions) Business Mix (Percent)
Pest Elimination 7% 8%
$308
GCS Service 19 33
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s Pest Elimination 60%
$273
$248
Total United States Other Services 13% 10% s GCS Service 40%
Total United States 6% 4%
International Cleaning & Sanitizing
Asia Pacific 2% 9%
Latin America 10 13
25
Canada 5 7
2000 2001 2002 2002
Africa/Export and Other 5 32
ECOLAB
Total International
Cleaning & Sanitizing (excluding Europe) 5% 12%
Sales of United States Other Services operations increased 13 percent
Consolidated (excluding Europe) 5% 4%
to $308 million in 2002, from $273 million in 2001. Excluding the effects of
business acquisitions, sales increased 4 percent for 2002. Pest Elimination’s
sales in 2002 included strong growth in non-contract services, which was
United States Cleaning & Sanitizing
partially offset by a slowdown in the growth of contract services. GCS
Sales (Dollars in millions) Business Mix (Percent) Service sales growth increased over the prior year, reflecting the continued
expansion of its operations through acquisitions and a focus on integrating
$1,615
$1,549
$1,498
s Institutional 60% past acquisitions. Excluding the effects of businesses acquired, GCS sales
s Food & Beverage 17%
decreased 1 percent for 2002. The results reflected the division’s focus on
s Kay 9%
s Professional Products 6% standardizing operating procedures and the impact of the hospitality slow-
s Textile Care 3%
down on the GCS business. United States Other Services also includes
s Vehicle Care 3%
s Water Care Services 2%
modest sales from the addition of EcoSure operations in January 2002.
Management rate-based sales of the company’s International Cleaning
& Sanitizing operations reached $1.4 billion for 2002, an increase of 202
2000 2001 2002 2002
percent over sales of $0.5 billion in 2001. International Cleaning & Sanitizing
includes European sales of $0.9 billion for 2002. Prior to 2002, the company
Sales of the company’s United States Cleaning & Sanitizing operations
included the results of the former European joint venture operations in its
were $1.6 billion in 2002 and increased 4 percent over net sales of $1.5
financial statements using the equity method of accounting. Excluding
billion in 2001. Business acquisitions had no effect on the growth in sales
Europe’s sales, International Cleaning & Sanitizing sales growth was 5 percent
for 2002. Sales benefited from good growth in sales of U.S. Institutional
for 2002. Excluding all business acquisitions and divestitures, sales also
and Kay operations. U.S. Institutional operations sales growth during 2002
increased 5 percent in 2002. European sales, although not consolidated prior
7. Financial discussion
Operating income of International Cleaning & Sanitizing operations rose
International Cleaning & Sanitizing 197 percent to $131 million in 2002 from operating income of $44 million
in 2001. The International operating income margin decreased from 9.4
Sales (Dollars in millions) Business Mix (Percent)
percent in 2001 to 9.2 percent in 2002. Operating income in 2001 does not
reflect the effect of SFAS No. 142 and includes $5.3 million of amortization
$1,427
s Europe 65%
expense related to goodwill. Excluding acquisitions and including the pro
s Asia Pacific 17%
s Latin America 7%
forma effects of SFAS No.142 on 2001, operating income for 2002 increased
s Canada 6%
10 percent over the prior year. Excluding acquisitions (primarily Europe) and
s Africa/Export and Other 5%
$472
$420
including the pro forma effects of SFAS No. 142 on last year, the operating
income margin for International increased to 11.1 percent of net sales from
10.5 percent in 2001. Significant operating income growth and margin
2000 2001 2002 2002
improvement from Asia Pacific, Latin America and Canada contributed to
the increase. The company added 510 sales-and-service associates to its
International Cleaning & Sanitizing operations, including Europe, during 2002.
to 2002, increased 8 percent over 2001 due to good growth in sales to the
Operating income margins of the company’s International operations
food and beverage markets and European acquisitions. For the Asia Pacific
are less than the operating income margins realized for the company’s
region, Japan, New Zealand and China showed good sales growth for the
U.S. operations. The lower International margins are due to higher costs
year while Australia’s sales declined due to the sale of its Hygiene Services
of importing raw materials and finished goods, increased investments in
business. Asia Pacific sales increased 3 percent in 2002, excluding business
dispensing equipment and the additional costs caused by the difference
acquisitions and divestitures. The increase in Asia Pacific sales was primar-
in scale of International operations where several operating locations are
ily from the institutional and food and beverage markets. Latin America
smaller in size, as well as to the additional cost of operating in numerous
sales increased 8 percent in 2002, excluding business acquisitions, with
and diverse foreign jurisdictions. Proportionately larger investments in sales,
good growth in all countries except Venezuela due to the economic impact
technical support and administrative personnel are also necessary in order
of the devaluation of its currency. Sales in Canada increased over the prior
to facilitate growth of International operations.
year due to good growth in sales to the institutional market. Sales of the
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Africa/Export and Other region increased in 2002 reflecting weakness in 2001 compared with 2000
Israel offset by good growth in South Africa and other operations. Sales of the company’s United States Cleaning & Sanitizing operations
Operating income of the company’s United States Cleaning & Sanitizing were $1.5 billion in 2001 and increased 3 percent over net sales in 2000.
operations was $272 million in 2002, an increase of 10 percent from oper- Business acquisitions accounted for approximately 1 percentage point of
ating income of $247 million in 2001. As a percentage of net sales, operat- the growth in sales for 2001. Sales reflected solid growth in the company’s
26
ing income increased from 15.9 percent in 2001 to 16.8 percent in 2002. Kay, Professional Products and Vehicle Care operations. The sales improve-
The improvement in reported operating income margins reflected tight cost
ECOLAB
ment also reflected benefits from new products and services, as well as
controls, savings from cost reduction initiatives, the sale of new products aggressive sales efforts and programs. Net selling price increases during
and the impact of adopting SFAS No. 142. Operating income in 2001 2001 were not significant. U.S. Institutional operations sales growth during
does not reflect the effect of SFAS No. 142, and thus includes amortization 2001 reflected modest growth in its specialty, housekeeping and Ecotemp
expenses related to goodwill of $10.6 million. If the provisions of SFAS No. programs, which were partially offset by the continuing slow down in the
142 had been applied retroactively to January 1, 2001, operating income economy and the weaker demand in the lodging and restaurant markets
for the United States Cleaning & Sanitizing operations would have increased due to the events of September 11, 2001. Excluding the acquisition of
6 percent and the operating income margin for the U.S. Cleaning & Sanitizing Facilitec, Institutional’s sales increased 2 percent for 2001. Sales of Kay’s
operations would have been 16.6 percent for 2001. The company added U.S. operations increased over 2000 with significant growth in its food retail
115 sales-and-service associates to its United States Cleaning & Sanitizing business and good growth in sales to the quickservice market. Excluding
operations during 2002. the acquisition of Southwest Sanitary Distributing Company (SSDC) in
Operating income of United States Other Services operations increased February 2000, Kay’s sales for 2001 increased 5 percent over 2000. Textile
13 percent to $33 million in 2002. The operating income margin for United Care sales decreased in 2001 due to exiting selected businesses and a very
States Other Services was 10.7 percent for both 2002 and 2001. Operating competitive market. Professional Products’ sales increased in 2001 with
income in 2001 does not reflect the effect of SFAS No. 142 and includes good growth in its healthcare and janitorial sales. Professional Products’
$1.9 million of amortization expense related to goodwill. Excluding acquisi- sales have been positively impacted by long-term supply agreements in
tions and the effects of SFAS No. 142, operating income increased 3 per- its janitorial business. Water Care Services’ sales increased over 2000 with
cent over 2001. Excluding acquisitions and including the pro forma effects good growth in sales to the food and beverage and hospitality markets.
of SFAS No. 142 on the prior year, the operating income margin for United Vehicle Care sales growth for 2001 was primarily due to new products
States Other Services was 11.4 percent for both 2002 and 2001. Pest and additional business with major oil company chains. Food & Beverage
Elimination had strong operating income growth due to increased produc- U.S. sales increased in 2001 with good growth in the beverage market.
tivity and cost controls. Operating income for GCS declined due to continued Sales of the United States Other Services operations increased 10 per-
investments in the division’s infrastructure and systems. During 2002, the cent to $273 million in 2001, from $248 million in 2000. Excluding the
company added 75 sales-and-service associates to its United States Other effects of businesses acquired and disposed of, sales increased 7 percent
Services operations. for 2001. Pest Elimination’s sales in 2001 included solid growth in contract
services, slightly offset by a slowdown in non-contract services due to
8. economic conditions. GCS Service sales growth increased over last year Henkel-Ecolab joint venture. On November 30, 2001, Ecolab purchased
reflecting the continued expansion of its operations through acquisitions. the remaining 50 percent interest of Henkel-Ecolab it did not previously
Excluding the effects of businesses acquired, GCS sales increased 4 percent own from Henkel KGaA. Additional details related to this purchase are
for 2001. In the fourth quarter of 2000, the company sold its Jackson dish- included in Note 5 of the notes to consolidated financial statements.
machine manufacturing business. Ecolab consolidated Henkel-Ecolab’s operations effective with the
Management rate-based sales of the company’s International Cleaning & November 30, 2001 acquisition date and end of Henkel-Ecolab’s fiscal year
Sanitizing operations reached $472 million for 2001, an increase of 12 per- for 2001. Because the company consolidates its International operations on
cent over sales of $420 million in 2000. Business acquisitions accounted the basis of their November 30 fiscal year ends, Henkel-Ecolab’s balance
for approximately 5 percentage points of the sales increase in 2001 for sheet was consolidated with Ecolab’s balance sheet as of year-end 2001.
International Cleaning & Sanitizing operations. Excluding business acquisi- The income statement for the European operations was consolidated with
tions, Asia Pacific sales increased 8 percent with double-digit sales growth Ecolab’s operations beginning in 2002.
in New Zealand and East Asia and good growth in Japan. The increase in
2001 compared with 2000
Asia Pacific sales was primarily from the food and beverage and institutional
The company included the results of Henkel-Ecolab operations in its financial
markets. Latin America sales increased 7 percent in 2001, excluding busi-
statements using the equity method of accounting through November 30,
ness acquisitions, with good growth in almost all countries. Sales in Canada
2001. The company’s equity in earnings of Henkel-Ecolab, which included
increased in 2001 due to strong growth in sales to the institutional and food
royalty income and goodwill amortization, was $16 million in 2001, a
and beverage markets. Sales of the Africa/Export region increased sharply
decrease of 19 percent when compared to $20 million in 2000. When
in 2001 due to strong results in South Africa and the full-year sales effect
measured in euros, net income of Henkel-Ecolab for 2001 decreased 13
of a business, which was acquired in September 2000.
percent and reflected lower sales volumes driven by slowing economies
Operating income of the company’s United States Cleaning & Sanitizing
and increasing raw material, energy and other costs, which were partially
operations was $247 million in 2001, a decrease of 1 percent from operating
offset by price increases.
income of $249 million in 2000. Business acquisitions had little effect on
Henkel-Ecolab sales, although not consolidated in Ecolab’s financial
operating income for 2001. Operating income included strong growth for
statements, increased 4 percent in 2001 when measured in euros. Sales
Professional Products and Water Care Services with moderate growth in
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reflected the impact of Europe’s slowing economies and reduced orders
Kay and Vehicle Care operations. Operating income of Institutional, Food &
from distributors as they lowered inventory levels. When measured in U.S.
Beverage and Textile Care was lower than the prior year. As a percentage of
dollars, Henkel-Ecolab sales were flat when compared to 2000 due to the
net sales, operating income decreased from 16.6 percent in 2000 to 15.9
negative effects of a stronger U.S. dollar.
percent in 2001. Operating income margins declined due to lower sales
volume, unfavorable sales mix, increased storage and handling costs and
Corporate 27
increased raw material costs. The company added 50 sales-and-service
Corporate operating expense totaled $46.0 million in 2002, compared with
associates to its United States Cleaning & Sanitizing operations during 2001.
ECOLAB
corporate operating expense of $4.9 million in 2001 and corporate operat-
Operating income of United States Other Services operations increased
ing income of $18.5 million in 2000. Prior to 2002, corporate operating
15 percent to $29 million in 2001. Excluding operating income of businesses
expense included overhead costs directly related to the former European
acquired in 2001 and the annualized effect of businesses acquired and
joint venture. In 2002, these expenses were included in the International
disposed of in 2000, operating income for 2001 increased 20 percent.
Cleaning & Sanitizing operating segment. The amount remaining in corporate
Both Pest Elimination and GCS reported double-digit increases in operating
operating expense in 2002 included restructuring and merger integration
income. The operating income margin of United States Other Services
costs of $51.8 million, which were partially offset by a curtailment gain of
operations was 10.7 percent, which is up from 10.3 percent of net sales
$5.8 million related to benefit plan changes. In 2000, corporate operating
in 2000. This increase reflected GCS’ efforts to improve income by focusing
income also included the $25.9 million gain on the sale of the Jackson
on operational efficiencies, as well as Pest Elimination’s increased produc-
business, special charges of $7.1 million and income of $4.4 million for
tivity, more efficient use of products and cost controls. During 2001, the
net reductions in probable losses related to certain environmental matters.
company added 120 sales-and-service associates to its United States
Other Services operations.
Interest and Income Taxes
Operating income of International Cleaning & Sanitizing operations
Net interest expense of $44 million for 2002 increased 54 percent over net
rose 7 percent to $44 million in 2001 from operating income of $41 million
interest expense of $28 million in 2001. This increase is primarily due to
in 2000. The effects of businesses acquired accounted for approximately
higher debt levels incurred at year-end 2001 to finance the acquisition of
1 percentage point of the growth in operating income for 2001. The
the remaining 50 percent interest of Henkel-Ecolab which Ecolab did not
International operating income margin decreased from 9.9 percent in 2000
previously own.
to 9.4 percent in 2001. While the Latin America and Africa/Export regions
Net interest expense for 2001 was $28 million, an increase of 16 percent
showed operating income margin improvement, the margins for Asia Pacific
over net interest expense of $25 million in 2000. This increase reflected
and Canada declined due to higher raw material costs. Excluding associates
higher debt levels during the year, including the additional debt incurred
added by Henkel-Ecolab, the company added 160 sales-and-service asso-
late in the year to purchase the remaining 50 percent of Henkel-Ecolab.
ciates to its International Cleaning & Sanitizing operations during 2001.
The company’s effective income tax rate was 39.8 percent for 2002,
compared with effective income tax rates in 2001 and 2000 of 40.5 percent
Henkel-Ecolab
and 40.7 percent, respectively. Excluding the effects of special charges in
Prior to November 30, 2001, the company operated cleaning and sanitizing
2002, the estimated annual effective income tax rate related to ongoing
businesses in Europe through a 50 percent economic interest in the
9. Financial discussion
operations was 39.5 percent. This decrease from prior years was principally long-term debt. In February
Cash Provided by
due to the adoption of SFAS No. 142 at the beginning of 2002, which elimi- 2002, the company refinanced
Operating Activities
nated the amortization of goodwill and related income tax effects. Overall $266 million of commercial
(Dollars in millions)
effective rates on International operations were higher in 2002, principally paper borrowings through the
$423
due to the addition of the European joint venture. This was partially offset issuance of euro 300 million of
$364
by lower state income tax rates in 2002. Excluding the effects of the sale Euronotes. As of December 31,
$315
$293
of Jackson and restructuring expenses in 2000, the effective income tax 2002 the ratio of total debt to
$236
rate was 40.5 percent in 2000. capitalization was 39 percent,
down from 46 percent at year-
Financial Position end 2001 and compared with
The company’s debt continued to be rated within the “A” categories by the 33 percent at year-end 2000.
1998 1999 2000 2001 2002
major rating agencies during 2002. Significant changes in the company’s The lower debt to capitalization
financial position during 2002 and 2001 included the following: rate in 2002 is due to repay-
s Total assets reached nearly $2.9 billion at December 31, 2002, an ments made during the year while the higher debt to capitalization ratio for
increase of 14 percent over total assets of $2.5 billion at year-end 2001. 2001 compared to 2000 was due to funding for the company’s acquisition
Accounts receivable have increased 8 percent since year-end 2001, primarily of the Henkel-Ecolab joint venture.
due to the effect of business acquisitions during the year as well as due to
the effect of exchange rates. Other assets have increased significantly Cash Flows
since year-end 2001 due to payments totaling approximately $125 million Cash provided by operating activities reached a new high of $423 million
to fund the company’s U.S. pension plan during 2002. Other current liabili- for 2002, an increase from $364 million in 2001 and $315 million in 2000.
ties have increased since year-end 2001 primarily due to an increase in Operating cash flows for 2002 reflected the additional cash flows from
restructuring accruals and due to the effect of exchange rates. businesses acquired, primarily the European joint venture, as well as the
During 2001 total assets increased to $2.5 billion at year-end 2001 improvement in accounts receivable and days sales outstanding. The
from $1.7 billion at year-end 2000. At year-end 2001, the balance sheet of operating cash flow for 2001 increased over 2000 due to a reduction in
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Henkel-Ecolab was consolidated with the company’s balance sheet due to year-end accounts receivable and the additional cash flows generated
the acquisition of the remaining 50 percent of Henkel-Ecolab from Henkel by business acquisitions. Changes in net operating asset levels negatively
KGaA. Total assets as of November 30, 2001 increased approximately $0.7 affected the operating cash flow by approximately $70 million in 2002,
billion as a result of this acquisition and the consolidation of Henkel-Ecolab. positively impacted it by $10 million in 2001 and negatively affected it by
s Working capital levels increased to $150 million at December 31, 2002 approximately $2 million in 2000.
28
from $102 million at year-end 2001 reflecting a significant decrease in Cash flows used for investing activities included capital expenditures
short-term debt from the prior year. Working capital levels at year-end 2001 of $213 million in 2002, $158 million in 2001 and $150 million in 2000.
ECOLAB
of $102 million were up from $69 million at year-end 2000 reflecting lower Worldwide additions of merchandising equipment, primarily cleaning and
levels of current liabilities prior to the Henkel-Ecolab acquisition, as well as sanitizing product dispensers, accounted for approximately 70 percent of
increases in accounts receivable and inventory due to the consolidation of each year’s capital expenditures. Merchandising equipment is depreciated
Europe’s balance sheet for the first time as of year-end 2001. During 2001, over 3 to 7 year lives. Cash used for businesses acquired included Terminix
short-term debt increased approximately $97 million due to the issuance Ltd. and Kleencare Hygiene in 2002, Henkel-Ecolab in 2001 and Spartan
of commercial paper to finance the acquisition of Henkel-Ecolab. and Facilitec in 2000. Investing cash flow activity also included the proceeds
s Total debt was $700 million at December 31, 2002 and decreased from from the sale of the Jackson business in 2000.
total debt of $746 million at year-end 2001. This decrease in total debt Financing cash flow activity included cash used to reacquire shares and
during 2002 is principally due to debt repayments made during the year. pay dividends and cash provided and used through the company’s debt
Total debt at year-end 2000 was $371 million. During 2001, commercial arrangements. In May 2000, the company announced a program to repur-
paper borrowings were incurred to fund the acquisition of the remaining chase up to $200 million of its common stock. Share repurchases totaled
50 percent of the Henkel-Ecolab joint venture. At December 31, 2001, $9 million in 2002, $32 million in 2001 and $187 million in 2000. These
the company classified $266 million of commercial paper borrowings as repurchases were funded with operating cash flows and additional debt. In
December 2000, the company announced an authorization to repurchase
up to 5 million additional shares of common stock.
Total Debt to Capitalization
In 2002, the company increased its annual dividend rate for the
eleventh consecutive year. The company has paid dividends on its common
(Percent) (Percent)
stock for 66 consecutive years. Cash dividends declared per share of com-
46%
mon stock, by quarter, for each of the last three years were as follows:
s Shareholders’ Equity 61%
39%
s Total Debt 39%
33%
Cash Dividends Declared
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
2002 $0.135 $0.135 $0.135 $0.145 $0.55
2001 0.13 0.13 0.13 0.135 0.525
2000 2001 2002 2002 2000 0.12 0.12 0.12 0.13 0.49