Fowlers will grow profitably as the preferred supplier of customers in our targeted markets, driven by exceeding customer requirements.
Maintain revenue contribution by increasing share of food products group product line in existing markets preserving OI (operating income) return.
Drive revenue growth by introducing durable products in the direct-to-consumer market and capturing targeted share.
Achieve overall revenue growth for current year, targeted at 10 percent and after-tax profit of 7 percent.
Maintain image as technical leader in technical products group and food products group product lines while improving overall return on assets.
Rapidly optimize newly implemented Tier One enterprise resource planning system.
Effectively integrate assets of new acquisition.
Customer satisfaction from all channels in the technical products group is negatively impacting sales.
Profits are disappearing from the technology and food products group products based on higher direct and indirect costs.
Revenue forecast to grow to $1.018 billion; actual projection after nine months is $1.000 billion.
Durable products group integration of online capability is behind schedule.
Inventory and receivables are expanding seemingly uncontrollably.
Key customers in food products group are leaving based on price-only criteria.
|
Fowlers 2000, 2001 Consolidated Income Statement (in millions) |
|||
|---|---|---|---|
|
2001 |
2000 |
Change |
|
|
Revenue |
1,000 |
925 |
8% |
|
Cost of Revenue (Sales) Expense |
860 |
750 |
15% |
|
Gross Profit |
140 |
175 |
-20% |
|
% |
14% |
19% | |
|
Selling, General, Administrative Expenses |
70 |
65 |
8% |
|
Research and Development Expense |
0 |
0 |
0% |
|
Total Operating Expenses |
930 |
815 |
14% |
|
Operating Income |
70 |
110 |
-36% |
|
% |
7% |
12% | |
|
Interest Expense |
(10) |
(11) |
-9% |
|
Income Before Tax |
60 |
99 |
-39% |
|
% |
6% |
11% | |
|
Income Tax Expense |
23 |
38 |
-39% |
|
Income After Tax |
37 |
61 |
-39% |
|
% |
4% |
7% | |
|
Extra Item Expense |
(2) |
(3) |
-33% |
|
Net Income |
35 |
58 |
-40% |
|
% |
4% |
6% | |
|
Fowlers 2000, 2001 Consolidated Balance Sheet (in millions) |
|||
|---|---|---|---|
|
2001 |
2000 |
Change |
|
|
Cash and Short-Term Investments |
20 |
15 |
26% |
|
Total Receivables |
371 |
370 |
0% |
|
Total Inventory |
215 |
175 |
19% |
|
Other Current Assets |
50 |
58 |
-17% |
|
Total Current Assets |
656 |
618 |
6% |
|
Property/Plant Equipment Gross |
269 |
248 |
8% |
|
Accumulated Depreciation |
(140) |
(123) |
12% |
|
Goodwill |
122 |
116 |
5% |
|
Long-Term Investments |
16 |
14 |
15% |
|
Other Long-Term Assets |
24 |
25 |
-4% |
|
Total Net Assets |
291 |
279 |
4% |
|
Accounts Payables |
72 |
62 |
14% |
|
Accrued Expenses |
31 |
32 |
-3% |
|
Short-Term Debt |
21 |
26 |
-24% |
|
Leases |
2 |
2 |
20% |
|
Other Current Liabilities |
62 |
60 |
4% |
|
Total Current Liabilities |
188 |
181 |
4% |
|
Long-Term Debt |
76 |
71 |
6% |
|
Minority Interest |
11 |
13 |
-14% |
|
Other Liabilities |
40 |
43 |
-6% |
|
Total Liabilities |
127 |
127 |
0% |
|
Total Employees |
6,200 |
5,700 |
|
$/Employee expressed in real $ |
$161,290 |
$162,281 |
|
Fowlers Product Group Revenue and Operating Income Performance |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Food Products |
Technology Products |
Durable Products |
|||||||
|
2001 |
2000 |
Change |
2001 |
2000 |
Change |
2001 |
2000 |
Change |
|
|
Revenue |
250 |
278 |
-10% |
450 |
463 |
-3% |
300 |
185 |
62% |
|
Cost of Revenue (Sales) Expense |
215 |
225 |
-4% |
390 |
375 |
4% |
255 |
150 |
70% |
|
Gross Profit |
35 |
53 |
-33% |
60 |
88 |
-31% |
45 |
35 |
29% |
|
% |
14% |
19% |
13% |
19% |
10% |
8% | |||
|
Selling, General, Administrative Expenses |
18 |
20 |
-10% |
35 |
33 |
8% |
18 |
13 |
35% |
|
Research and Development Expense |
0 |
0 |
0 |
0 |
0 |
0 | |||
|
Total Operating Expenses |
233 |
245 |
-5% |
425 |
408 |
4% |
273 |
163 |
67% |
|
Operating Income |
18 |
33 |
-47% |
25 |
55 |
-55% |
28 |
22 |
25% |
|
% |
7% |
12% |
6% |
12% |
6% |
5% | |||