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MST Company “ Financial Statements




Debt Ratings in the Chemical Industry
INCOME STATEMENT

Year Ended December 31
...........................................................
($ millions, except per share data) 1990 1989 1988 1987
..................................................................................................................................................

Sales 8,995 8,681 8,293 7,639
Cost of Goods Sold 4,901 4,597 4,537 4,334
Gross Pro¬t 4,094 4,084 3,756 3,305
SG & A Expense 2,485 2,342 2,135 1,957
Operating Income Before Depreciation 1,609 1,742 1,621 1,348
Depreciation, Depletion, & Amortization 700 664 666 646
Operating Pro¬t 909 1,078 955 702
Interest Expense 208 204 193 188
Non-Operating Income/Expense 120 151 138 136
Special Items 0 0 0 32
Pretax Income 821 1,025 900 682
Total Income Taxes 263 336 302 237
Minority Interest 12 10 7 9
Net Income 546 679 591 436
..................................................................................................................................................
910 Case: Debt Ratings in the Chemical Industry




180 Part 4 Additional Cases




BALANCE SHEET

as of December 31
Debt Ratings in the Chemical Industry




...........................................................

1990 1989 1988 1987
($ millions)
......................................................................................................................................

Assets:
Cash & Equivalents 204 253 221 223
Net Receivables 1,498 1,309 1,234 1,209
Inventories 1,270 1,197 1,170 1,081
Other Current Assets 541 489 472 490
Total Current Assets 3,513 3,248 3,097 3,003
Gross PP & E 7,620 6,937 6,926 6,730
Accumulated Depreciation 4,128 3,764 3,780 3,654
Net PP & E 3,492 3,173 3,146 3,076
Investments at Equity 248 204 205 240
Intangibles 1,425 1,682 1,790 1,953
Other Assets 558 297 223 183
Total Assets 9,236 8,604 8,461 8,455

Liabilities:
LT Debt Due in One Year 118 44 128 119
Notes Payable 464 461 428 420
Accounts Payable 584 514 545 527
Taxes Payable 95 126 124 101
Accrued Expenses 929 777 755 633
Total Current Liabilities 2,190 1,922 1,980 1,800
Long-Term Debt 1,652 1,471 1,408 1,564
Deferred Taxes 640 621 588 584
Other Liabilities 665 649 685 606
Total Noncurrent Liabilities 2,957 2,741 2,681 2,754
Total Liabilities 5,147 4,663 4,661 4,554

Equity:
Common Stock 329 164 164 164
Capital Surplus 714 877 874 872
Retained Earnings 4,609 4,144 3,714 3,382
Less: Treasury Stock 1,563 1,244 952 517
Common (Total) Equity 4,089 3,941 3,800 3,901
Total Liabilities & Equity 9,236 8,604 8,461 8,455
......................................................................................................................................
911
Case: Debt Ratings in the Chemical Industry




181
Part 4 Additional Cases




EXHIBIT 4
Boland Corporation “ Financial Statements




Debt Ratings in the Chemical Industry
INCOME STATEMENT

Year Ended December 31
...........................................................
($ millions, except per share data) 1990 1989 1988 1987
..................................................................................................................................................

Sales 2,592 2,509 2,308 1,930
Cost of Goods Sold 1,936 1,811 1,664 1,337
Gross Pro¬t 656 698 644 593
SG & A Expense 382 353 347 326
Operating Income Before Depreciation 274 345 297 267
Depreciation, Depletion, & Amortization 123 122 117 118
Operating Pro¬t 151 223 180 149
Interest Expense 56 57 44 34
Non-Operating Income/Expense 25 22 15 12
Special Items “4 4 0 0
Pretax Income 116 192 151 127
Total Income Taxes 32 68 53 49
Net Income 84 124 98 78
..................................................................................................................................................
912 Case: Debt Ratings in the Chemical Industry




182 Part 4 Additional Cases




BALANCE SHEET

as of December 31
Debt Ratings in the Chemical Industry




...........................................................

1990 1989 1988 1987
($ millions)
......................................................................................................................................

Assets:
Cash & Equivalents 6 12 25 34
Net Receivables 419 453 437 362
Inventories 293 296 311 273
Other Current Assets 16 29 28 11
Total Current Assets 734 790 801 680
Gross PP & E 2,297 2,169 2,164 2,007
Accumulated Depreciation 1,468 1,388 1,363 1,280
Net PP & E 829 781 801 727
Investments at Equity 145 144 149 137
Intangibles 106 110 141 102
Other Assets 52 79 48 39
Total Assets 1,866 1,904 1,940 1,685

Liabilities:
LT Debt Due in One Year 34 15 39 24
Notes Payable 70 140 172 26
Accounts Payable 222 255 223 200
Taxes Payable 9 4 4 11
Accrued Expenses 187 171 179 143
Total Current Liabilities 522 585 617 404
Long-Term Debt 466 501 474 392
Deferred Taxes 48 60 60 49
Other Liabilities 115 93 106 140
Total Noncurrent Liabilities 629 654 640 581
Total Liabilities 1,151 1,239 1,257 985

Equity:
Common Stock 19 19 20 22
Capital Surplus 180 177 188 200
Retained Earnings 505 469 475 478
Common Equity 704 665 683 700
Preferred Stock 11 0 0 0
Total Equity 715 665 683 700
Total Liabilities & Equity 1,866 1,904 1,940 1,685
......................................................................................................................................
913
Case: Debt Ratings in the Chemical Industry




183
Part 4 Additional Cases




EXHIBIT 5
Quotron Chemical Corporation “ Financial Statements




Debt Ratings in the Chemical Industry
INCOME STATEMENT

Year Ended December 31
...........................................................
($ millions, except per share data) 1990 1989 1988 1987
..................................................................................................................................................

Sales 2,618 2,637 2,884 2,525
Cost of Goods Sold 1,991 1,790 1,770 1,772
Gross Pro¬t 627 847 1,114 753
SG & A Expense 217 224 207 232
Operating Income Before Depreciation 410 623 907 522
Depreciation, Depletion, & Amortization 155 147 147 142
Operating Pro¬t 255 476 760 380
Interest Expense 269 297 116 83
Non-Operating Income/Expense 47 0 -26 6
Special Items 28 0 0 0
Pretax Income 61 178 618 303
Total Income Taxes 39 64 258 159
Income Before Discontinued Operations 21 114 360 144
Discontinued Operations 0 133 23 108
Net Income 21 247 383 252
..................................................................................................................................................
914 Case: Debt Ratings in the Chemical Industry




184 Part 4 Additional Cases




BALANCE SHEET

as of December 31
Debt Ratings in the Chemical Industry




...........................................................

1990 1989 1988 1987
($ millions)
......................................................................................................................................

Assets:
Cash & Equivalents 13 104 219 25
Net Receivables 467 361 428 434
Inventories 366 304 339 316
Other Current Assets 51 99 354 61
Total Current Assets 897 868 1,339 836
Gross PP & E 2,905 2,513 1,943 2,037
Accumulated Depreciation 885 754 634 657
Net PP & E 2,020 1,759 1,309 1,380
Investments at Equity 32 129 60 60
Other Investments 34 39 39 107
Intangibles 83 94 26 62
Other Assets 156 115 135 137
Total Assets 3,222 3,004 2,908 2,581

Liabilities:
LT Debt Due in One Year 14 8 3 21

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