1 / 30

FIN 3403 ACTUAL STUDENT SLIDE PRESENTATION Use this for ideas on your presentation

FIN 3403 ACTUAL STUDENT SLIDE PRESENTATION Use this for ideas on your presentation. NOTES ON PRESENTATION. Provide a handout from the spreadsheet to everyone in class and instructor Provide instructor the following: Hard copy of slides Copy of spreadsheet Copy of disk

pascale-blanchard
Download Presentation

FIN 3403 ACTUAL STUDENT SLIDE PRESENTATION Use this for ideas on your presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FIN 3403 ACTUAL STUDENT SLIDE PRESENTATION Use this for ideas on your presentation

  2. NOTES ON PRESENTATION • Provide a handout from the spreadsheet to everyone in class and instructor • Provide instructor the following: • Hard copy of slides • Copy of spreadsheet • Copy of disk • Latest annual or 10K

  3. Group Members LIST ALL TEAM MEMBERS HERE BE SURE AND INTRODUCE YOUR TEAM MEMBERS TO THE CLASS DRESS APPROPRIATELY IN BUSINESS ATTIRE

  4. Agenda • History • Goals • Industry Overview • Growth • Analysis

  5. Agenda Contd. • Du Pont Model • Competitors • Forecasted Income Statement • Stock Performance • Q & A

  6. H I S T O R Y

  7. Harris Evolution • Harris Automatic Press Company • Harris-Intertype • Radiation Incorporated • 1974 Harris Corp was born

  8. G O A L S

  9. Harris Goals • Short Term Goals • “Near-term” Profits • Increase Market Share • Long Term Goals • International Growth • Federal Contracts • Increase Shareholder’s Wealth

  10. Industry Trends World Markets in Turmoil - Russia Falls - German banks caught in Russia - Brazil in trouble - Asia Falls

  11. Harris Reacts • July 20, 1998 - Harris implements a restructuring program • reduction of 2,300 workers (8% of workforce) • 1,900 of these from the semiconductor sector • August 31, 1998 - Harris authorizes the repurchase of 1 million shares of common stock “We are continuing to experience difficult market conditions in the semiconductor industry. As a result…it is necessary to reduce our cost structure.” Phil Farmer, chairman, president and CEO of Harris

  12. Revenue Source: Thomson Investors Report

  13. Earnings Per Share Source: Thomson Investors Report

  14. Cash Flow Source: Thomson Investors Report

  15. R.D. Analysis • Liquidity • Profitability • Leverage

  16. Liquidity Current Ratio = Current Assets Current Liabilities 1997: 2,064/1289 = 1.6 NOTE: I RECOMMEND YOU DO A BAR CHART ON RATIOS Prof Diggle Quick Ratio = Current Assets - Inventories Current Liabilities 1997: 2064-611/1289 = 1.1

  17. Profitability--do bar chart Operating Profit Margin = Operating Income Sales 1997: 1278/3797 = 34% Total Asset Turnover = Sales Total Assets 1997: 3797/2064 = 1.84 Operating Income Return on Investment (OIROI) = 1997: .34 X 1.84 = .63

  18. Leverage Times Interest Earned = EBIT Interest Expense 1997: 1278/105 = 12X

  19. Du Pont Model

  20. Competitors

  21. Harris Happenings BLOCK TRADE - Harris Corp 143,700 Lehman Brothers BLOCK TRADE - Harris Corp 100,000 Harris Corporation Line Test System Selected by Major U.S. Carrier for National Deployment Harris Semiconductor Introduces the World's First QML Class T Product Flow

  22. Motorola Happenings • Motorola changes accounting for Starfish • MOTOROLA SAYS CHARGES RELATED TO STARFISH ACQUISITION • BROWN BROTHERS CUTS MOTOROLA TO SHORT-TERM NEUTRAL • AirTouch contract loss based on price - Motorola AirTouch signs equipment deal with Nortel • Ericsson unconcerned by Microsoft mobile move • MOTOROLA SAYS ADOPTS SHAREHOLDER RIGHTS PLAN • INTERVIEW-Iridium sees end-November start in India • Harris forms Space & Defense unit

  23. Nortel Happenings • Nortel Networks' Symposium Integrated Call Center Solution Wins Best-of-Show Award Cellcom Israel Showcases Broadband Wireless Access Technology from Nortel Networks • S&P 11/10/1998 ***** Star Recommendation for Northern Telecm NT on 03/02/98 Benefits from wireless, Internet growth PRN 11/10/1998 • Nortel Networks Brings Industry's Richest Centrex Feature Set into IP World • Nortel Networks' New CallPilot Provides Enterprise Customers With the Next Generation of Multimedia Messaging • Nortel Networks Executive Presents Vision for Public Network Transition

  24. Forecasted Income Statementoptional fin 3403 reqd fin 3404

  25. Stock Analysis

  26. Harris Vs. S&P 500

  27. Harris Vs. Motorola

  28. HRS Vs. S&P, Motorola, Northern Telecom

  29. Summary • Harris is focusing on short-term stability and long-term growth. • Harris makes internal adjustments to off-set world markets. • Exponential growth of Lanier Worldwide has supported lagging sectors. • Harris has followed sector trends but is still behind its competitors on shareholder value, therefore; • RECOMMENDATION: DUE DILIGENCE

  30. QuestionsandAnswers

More Related