steel corporation s comparative statements of income and retained earnings and conso 626159
Steel Corporation”s comparative statements of income and retained earnings and consolidated balance sheet for 2010 and 2009 follow: Steel Corporation Consolidated statement of Earnings For the years ended 2010 December 31, 2009 (USD thousands)
December31 |
||
(1) |
(2) |
|
Net sales |
2010 |
2009 |
Costs and expenses: |
$4,876.5 |
$4,819.4 |
Cost of sales |
$4,202.8 |
$4,287.3 |
Depreciation |
284 |
261.1 |
Estimated restructuring losses |
111.8 |
137.4 |
Total costs |
$4,598.6 |
$4,685.8 |
Income from operations |
$268.9 |
$ 133.6 |
Financing income (expense): |
7.7 |
7.1 |
Interest and other income |
-60 |
-46.2 |
Interest and other financing costs |
$ 216.6 |
$ 94.5 |
Loss before income taxes and cumulative |
||
effect of changes in accounting |
||
Benefit (provision) for income taxes |
-37 |
14.0) |
Net earning (loss) |
$ 179.6 |
80.5 |
Retained earnings, January 1 |
-859.4 |
939.9) |
$ (679.8) |
-859.4 |
|
Dividends |
0 |
0 |
Retained earnings, December 31 |
$ (679.8) |
859.4) |
Steel Corporation Consolidated balance sheet As of 2010 December 31, and 2009
Dec-31 |
||
-1 |
-2 |
|
Assets |
2010 |
2009 |
Current Assets |
||
Cash and cash equivalents |
$ 180.0 |
$ 159.5 |
Receivables |
374.6 |
519.5 |
Total |
$ 554.6 |
$ 679.0 |
Inventories |
||
Raw materials and supplies |
$ 335.5 |
$ 331.9 |
Finished and semi-finished products |
604.9 |
534.9 |
Contract work in process less billings of |
18 |
16 |
$10.9 and $2.3 |
||
Total inventories |
$ 958.2 |
$ 882.9 |
Other current assets |
$ 13.0 |
$ 7.2 |
Total current assets |
$ 1,525.8 |
$ 1,569.1 |
Property, plant and equipment less |
$ 2,714.2 |
$ 2,759.3 |
accumulated depreciation of $4329.5 and |
||
$4167.8 |
||
Investments and miscellaneous assets |
112 |
124 |
Deferred income tax asset – net |
885 |
903 |
Intangible asset – Pensions |
463 |
427 |
Total assets |
$ 5,700.3 |
$ 5,782.4 |
Liabilities and stockholders” equity |
||
Current liabilities |
||
Accounts payable |
$ 381.4 |
$ 387.0 |
Accrued employment costs |
208 |
166 |
Postretirement benefits other than pensions |
150 |
138 |
Accrued taxes |
72 |
68 |
Debt and capital lease obligations |
92 |
88.9 |
Other current liabilities |
146 |
163.9 |
Total current liabilities |
$ 1,049.6 |
$ 1,011.2 |
Pension liability |
$ 1,115.0 |
$ 1,117.1 |
Postretirement benefits other than pensions |
1,415 |
1,441.40 |
Long-term debt and capital lease obligations |
546.8 |
668.4 |
Other |
335.6 |
388.5 |
Total noncurrent liabilities |
$ 3,412.4 |
# 3,615.4 |
Total liabilities |
$ 4,462.0 |
$ 4,626.6 |
Common stockholders” equity |
||
Preferred stock – at $1 per share par value |
$ 11.6 |
$ 11.6 |
(aggregate liquidation preference of $481.2); |
||
Authorized 20,000,000 shares |
||
Preference stock – at $1 per share par value |
2.6 |
2.6 |
(aggregate liquidation preference of $88.2); |
||
Authorized 20,000,000 shares |
||
Common stock – at $1 per share par |
112.7 |
111.9 |
value/Authorized 250,000,000 and |
||
150,000,000 shares; Issued 112,699,869 and |
||
111,882,276 shares |
||
Held in treasury, 1,992,189 and 1,996,715 |
-59.4 |
-59.5 |
shares at cost |
||
Additional paid-in capital |
1,850.60 |
1,949 |
Accumulated deficit |
679.8) |
-859 |
Total common stockholders” equity |
$ 1,238.3 |
$ 1,155.8 |
Total liabilities and stockholders” equity |
$ 5,700.3 |
$ 5,782.4 |
a. Perform a horizontal and vertical analysis of Steel”s financial statements in a manner similar to Exhibit 57 and Exhibit 58.
b. Comment on the results obtained in part (a).