According to management, hurricanes in the Gulf of Mexico had some effect on the company's results, as did the economic environment in Europe and the United States. The company expects to see a contraction in manufacturing output in the U.S. and Europe and slowing growth in Asia due to the global financial crisis. The recent strengthening of the U.S. dollar is also expected to have an impact on earnings growth and consolidated sales. Management said that steps will be taken to align the company's cost structure as necessary, and stated that the company remains confident in its business strategy and ability to perform financially. Although the company has poor debt management based on the measures that we evaluated, we feel that the strengths detailed above should outweigh any potential weaknesses.
Our quantitative rating is based on a variety of historical fundamental and pricing data and represents our opinion of a stock's risk-adjusted performance relative to other stocks. However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could impact the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company. For those reasons, we believe a rating alone cannot tell the whole story, and should be part of an investor's overall research.- Loading Comments...
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