...As stated in Fitch's Special Report, "Analysis of U.S. Corporate Pensions," published Sept. 24, 2007, Fitch traditionally looks at pension liabilities as a drain on cash flows that coincide with incremental funding requirements for domestic defined benefit pension plans as mandated by the Pension Protection Act of 2006 (PPA). The PPA mandates that qualified pension plans essentially must be 100% funded over a seven- year period. Pension obligations at the end of 2008, due to underfunded defined benefit plans for Fitch-rated consumer product companies, are materially higher than at the end of 2007. Overall funding levels declined to 64% at the end of 2008 from 88% in the prior year. In addition, given the economic environment, cash flow generation is under significant pressure. Cash flow is measured by funds flow from operations (FFO), which is defined as operating cash flow minus working capital. The increased need for cash, coincident with intense pressure on profitability, particularly...
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| Report Type: | Special Report
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| Company(ies): | The Stanley Works, Avon Products, Inc., The Clorox Company, Alberto-Culver Company, Whirlpool Corporation, Mattel, Inc., Levi Strauss & Company, Fortune Brands, Inc., Colgate-Palmolive Company, Constellation Brands, Inc., Kimberly-Clark Corporation, Newell Rubbermaid, Inc., The Black & Decker Corporation, Hasbro, Inc.
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| Ticker(s): | ACV , SWK , MAT , CLX , HAS , NWL , KMB , FO , BDK , WHR , CL , AVP , STZ
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| Issuer: | Stanley Works (The)
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| Free Sample: |
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| Format: | | PDF |  |
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