Premium Essay

Bearings

In: Business and Management

Submitted By babasuwe
Words 3549
Pages 15
BEARINGS, Inc
Financing Capital Investments
MBA049

“Compete as the highest priced, highest value-added player”
“Compete as the highest priced, highest value-added player”

BEARINGS, INC

INDUSTRY * Fragmented industrial distribution * Highly cyclical * Sales were down 12% as a result of the recession * 2 known competitors - Motion Industries and Kaman Bearing

Common Stock breakdown was as follows

Three things changed 1. Increased number of corporate officers 2. Expanded number of sales offices 3. Corporate goal of $1bn in sales was established

Industry Analysis: CAN SALES REALLY GTOW AT 23%

The graph above depicts the growth rate in the industry and the only time it has ever been above 20% was in 1973, however, the graph below shows the growth rate of sales for Bearings since 1981. Currently, there is a recession and having been told that the industry is highly fragmented, it is impossible to see how Bearings Inc will grow their sales from a negative of 5% to a constant 23% year on year. Nonetheless, it is important to note that their speculative growth of 23% will surpass the industry growth rate, which mean they are either planning to seriously improve their efficiency and capture customers from competitors or they are planning to increase the Industrial Market.

QUESTION 1
The key issue facing Raymond Smiley: * Mr Smiley needed to determine the best method of funding the company’s $45m need.

QUESTION 2a
What options are available? 1. Equity issue 2. Contract a 20-year debenture 3. Hybrid of half equity and half debt

QUESTION 2b
Compare and contrast these options based on the facts of the case and existing finance theory

Equity * There was a lack of familiarity with capital markets * It would maintain bearings reputation as a conservatively financed company * Dividend policy…...

Similar Documents

Premium Essay

Military Bearing

...Military Bearings In the United States Army, military bearing is the root in which every service member practices in order to carry out good discipline and ethics throughout ones military careers. Army regulations, The Articles of the UCMJ, as well as our own Soldiers Creed illustrate how a military service member should conduct themselves on a daily basis, on and off duty. All military soldiers regardless of branch have an obligation to conduct themselves with dignity and in such a manner as to reflect credit on the military service that they are in. Dignity exists only where the individual has a proper sense of his or her own worth and of the worthiness of their cause. The person who possesses true dignity also will respect the dignity of others. Military bearing is dignity within military relationships. It exists when the individual is proud of his military organization and of there. Dependability is a major aspect of military bearing. Without dependability, one can neither perform properly in the workspace nor be depended upon by their coworkers, or chain of command to carry out their military duties properly. A military member is required to be punctual, and reliable. Lack of this in a service member not only hinders the mission of the command but of the entire Army. Honor, Courage, and Commitment, are three key values that are instilled in each soldiers life the instant that the oath of enlistment is pledged. Honor is the integrity that one takes upon their self in......

Words: 1061 - Pages: 5

Premium Essay

Performance Financial

...THE COMPANY PROFILE 2.0 NATURE OF PROJECT IN TEAMS 2.1 QUALITIES OF LEADERSHIP & TOOLS USED 2.2 MOTIVATION to manage project teams 2.3 demonstration of the project management 3.0 CONCLUSION 4.0 REFERENCES 1.0 INTRODUCTION MARIAM Precision Bearing Manufacturing Co., Ltd Mariam Precision Bearing Manufacturing Co.Ltd. Is a manufacturer of high-grade bearing parts (green rings) as well as a wide range of ball and roller bearing products.  Through technology-sharing and production linkages with the world's leading bearing manufacturers, as well as progressive cooperation with partners in the domestic arena, Mariam has consistently elevated its manufacturing capability and is now recognized as one of the leading producers of high-grade finished bearings and components. To date, the company has 5 production facilities and affiliated plants, with a combined yearly output of almost 120million bearing units and auxiliary bearing parts. Under the Mariam Precision Bearing brand, Mariam has made headway into the domestic bearing market by supplying OEMs with cost-efficient products, together with value-added services encompassing the widest range of bearings available in any manufacturing company of its class. Its' roster of OEM customers are global brand names and market leaders in their respective industries. Complimenting this, Mariam has extensively developed its distribution arm which now has branch offices in 18 major cities......

Words: 4624 - Pages: 19

Premium Essay

Bearing Arms

...Mary Petto English 101 2/05/2013 Essay The Right to Bear Arms Having the right to carry a gun is an opinion. Some Americans feel the need to be able to practice their rights and carry guns either on them or in their house for safety. To some being able to own a gun is more of a hobby but for most it is for security. With all the bad events going on in this country, we as Americans should ask ourselves; are guns more harmful or are they more helpful? Since the beginning of time, humans have always had weapons of some sort to protect themselves and their families and it should stay the same now of days. Taking gun rights away would put our country and the people in it in more danger than if we are to keep our rights. If gun rights are taken away, people with bad intentions will still find a way to either get guns and kill or find some kind of weapon and do it (Musgraves, 2012). Americans will be helpless in situations where a gun or weapon is being used. With nothing to defend ourselves, we take a chance on being killed. In other ways, not being able to have guns or weapons could put Americans in danger because some Americans will feel the need to make a riot and protest about this which can lead to mast destruction (Musgraves, 2012). Americans that are able to carry a gun or keep one with them or at their house is able to provide themselves and their family security that the government cannot. If someone decides to rob someone at their house,......

Words: 1183 - Pages: 5

Premium Essay

Bearing in Mind Gaskell's Desire to "...Give Some Utterance to the Agony Which from Time to Time Convulsed This Dumb People, " How Effective Is "Mary Barton" in Its Attempt to Move the Reader Through Its Depiction of Working Class Struggles.

...Bearing in mind Gaskell's desire to "...give some utterance to the agony which from time to time convulsed this dumb people," how effective is "Mary Barton" in its attempt to move the reader through its depiction of working class struggles. Elizabeth Gaskell's main purpose of the novel is to bring to light the struggles that are faced by the poor. Gaskell does this through the use of descriptive language and also by presenting a number of themes through certain characters, such as a belief of injustice in the industrial working class. As a female writer, there is much criticism against her for writing a novel so out of depth of her class and gender. However, even with this criticism Gaskell still brings to light key socio-political issues, such as the need for the worker and employer to understand each other. The era in which "Mary Barton" is written is known as the Time of Troubles. During a period of prosperity from 1832 to 1836 during the industrial revolution, Gaskell's experience of these conditions are sensed strongly in the narrative, in particular her contact with the working class in her home city of Manchester, as she "elbows" the working class everyday on the streets. This historic document therefore brings you closer to the struggles of the working class, as suggested by Gaskell: "The more I reflected on this unhappy state of things...as the employers and employed must be, the more anxious I became to give some utterance to the agony." It can be argued that......

Words: 3053 - Pages: 13

Free Essay

Timken

...Timken Roller Bearing Axle Company. A year earlier, in 1898, Timken got a patent for the tapered roller bearing for which the company would become known. At the time, Timken was a carriage-maker in St. Louis and held three patents for carriage springs. However, it was his patent for tapered roller bearings that allowed his company to become successful. Tapered roller bearings were a breakthrough at the end of the 19th century because bearings used in wheel axles had not changed much since ancient times. They relied on bearings enclosed in a case that held lubricants. These were called "friction bearings" and depended on lubricants to function. Without proper lubrication, these bearings would fail due to excessive heat caused by friction. Timken was able to significantly reduce the friction on his bearings by using a "cup" and "cone" design incorporating tapered bearings which actually rolled, which reduced the load placed on the bearings by distributing the weight and load evenly across the cups, cones, and bearings. The company moved to Canton, Ohio in 1901 as the automobile industry began to overtake the carriage industry. Timken chose this location because of its proximity to the American car manufacturing centers of Detroit, Michigan and Cleveland, Ohio, and because it was close to the American steel-making centers of Pittsburgh, Pennsylvania and Cleveland. Ray Harroun, winner of the first Indianapolis 500, rode into victory lanes with Timken Bearings for his......

Words: 564 - Pages: 3

Free Essay

Importance of Child Bearing in Bible

...understanding of the needs of her family and nation than the corresponding male does. Second, as a matter of faith, she more closely understands God’s purposes than does her male counterpart” (AE,p.143-57). The Bible emphasizes the importance of child bearing again in Genesis with Rachel. “The intensity of a woman’s longing to conceive and bear a child is epitomized by Rachel’s cry to Jacob: ‘Give me children, or I shall die!’(Genesis 30:1)” (WM). The passage says that Rachel would rather die then not bear Jacob a child. Rachel envies her sister who is neglected by Jacob just because she is fertile. Her envy stems from the fact that: “motherhood is a role of honor and a source of great happiness” (FG, p.70). As beautiful as Rachel is and as much as Jacob loves her she values having a child over love and beauty. In both of these passages, the Bible demonstrates that over all other things (beauty, love, morals) the main thing a woman should be striving for is motherhood. Now that we have looked at how the Bible shows the primary role of a woman is childbearing, lets look at why they portray this message. “Childbearing was viewed as an essential function for a female in ancient times. The dominant role for a woman was found in conceiving, bearing, giving birth to, and rearing the children” (W.E). Basically the usefulness of a wife to her husband was these duties. If she cannot fulfill these duties, then she is at loss for a social identity and possible at a loss of approval......

Words: 935 - Pages: 4

Free Essay

International Human Resource Management

...│ CREDIT RESEARCH │ Wednesday │ 20 September │ 2006 Summary Financials (USD mn) 2003 Sales Gross Profit EBITDA Net Profit Fin Debt Equity Operating CF Free CF 160.3 32.8 14.8 8.4 9.7 43.4 12.3 (2.9) 2004 204.7 69.2 47.4 29.9 16.9 82.4 7.7 (11.3) 2005 249.7 82.8 52.1 30.9 50.7 96.3 21.1 2006E 279.6 94.0 61.0 34.8 153.9 129.2 45.4 No. 1 in the Russian ball bearing industry European Bearing Corporation (EBC) controls 37% of the Russian ball bearing market. EBC operates five ball bearing plants in Russia and one in Kazakhstan and produces more than 2,700 types of ball bearings for more than 500 customers. EBC controls 98% of Russia’s high-precision (aviation) ball bearing market and 95% of the railroad ball bearing market. These two business segments accounted for 65% of EBC’s revenues in 2005. Long-term relationship with Russian Railroads The company has a supply contract worth USD560 mn with Russian Railroads that secures EBC average annual revenue of USD100 mn to 2010. (23.2) 19.3 Source: Company data 2004 34% 23% 15% 0.4 35.0 2005 33% 21% 12% 0.9 13.7 Ratios 2003 Gross Margin EBITDA Margin Net Margin Debt/EBITDA EBITDA/Int. Expense Financial Debt/Equity 20% 9% 5% 0.7 22.8 0.22 Solid financial standing, moderate leverage In 2005, EBC reported revenues of USD250mn, up 22% y-o-y. EBITDA margin stood at 21%, while the debt/EBITDA ratio was only 0.9. Factoring in the planned CLN issue, debt/EBITDA should not exceed 2.5 at year-end 2006, and gradually......

Words: 13583 - Pages: 55

Premium Essay

Accounting Ratios

...he lays the foundation for the entire rolling bearing industry. Thus, the worldwide success story of the ball bearing begins in Schweinfurt.Later, 1883 is officially declared the year in which the company was founded.  1896Friedrich Fischer applies for permission to build a new plant near the train station in Schweinfurt – a step towards a new industrial dimension. The new plant produces 10 million balls per week. The company is incorporated one year later.  On 29 july 1905, the FAG brand was registered with the patent office in Berlin. The registered trademark FAG, which stands for Fischers Aktien-Gesellschaft, is protected in over 100 countries today. In 1909 Georg Schäfer takes over the “First Automated Cast Steel Factory, previously Friedrich Fischer, AG“ (“Erste Automatische Gußstahlkugelfabrik, vormals Friedrich Fischer, AG“)  The Schaeffler Technologies AG & Co. KG (also known as Schaeffler Group respectively Schaeffler Gruppe inGerman) is a privately owned major manufacturer of rolling element bearings for automotive, aerospace and industrial uses. In Germany, the main brands of the Schaeffler Group – INA, FAG and LuK – are marketed by Schaeffler Technologies AG & Co. KG and LuK GmbH & Co. oHG. Business of the Company Rolling And Plain Bearings * Deep grove ball bearing * Angular contact ball bearings * Single row angular contact ball bearings Linear Rolling Bearings And Linear Plain Bearings * Monorail guidance system * Roller......

Words: 620 - Pages: 3

Free Essay

Bearing Witnes

...Trang Nguyen FYS 124 Professor Gregg September 26th 2015 “Bearing witness” Yawning, I complained about being waked up at 4am for the charity trip. We were on the car going to Hoa Binh village (a village where homeless people and disable children live) from Hanoi. That time, I, a 13 years old girl, could not have understood the meaning of the trip. I thought that it would have been a boring meaningless trip. “Why do we have to such a place where I find nothing interesting?” 10am, we arrived at Hoa Binh village. Because the entrance was too small, we had to leave our car outside and walk into the village. “Such a dirty and dilapidated place”- I thought. There were only about fifteen houses in the village, all of them being really small and old. We went into the first house. The atmosphere smelt weird, like dirty diapers. Someone was yelling at the corner of the house. Coming closer, I realized that it was a boy, no, an adult, wearing a underwear and talking with some language that I did not know. He was not a normal person. He looks like a 30 years old man, but he acted like a baby, playing with the three wheels car, smiling unconsciously and talking with himself. I was absolutely surprised, and scared. “Almost of people in this village were like that. They are affected by Agent Orange from the war. They cannot live like normal people. They are not aware of what happens around. They do not live, they just breathe. And being alive.”- Our guider told us about people......

Words: 660 - Pages: 3

Premium Essay

Fault Analysis of a Bearing

...ISSN: 2348 9510 International Journal Of Core Engineering & Management (IJCEM) Volume 1, Issue 9, December 2014 Fault Analysis of a Bearing Archit Upadhyay Bachelor of Engineering- Mechanical Engineering Acropolis Institute of Technology & Research, Indore, (M.P), India Contact Number: +91-9993099957 E-maid ID: architupadhyay2192@gmail.com Abstract The performance of a bearing which is dynamic in nature is very crucial to the working of a machine. The presence of defects in a bearing results in reduced efficiency or in some cases severe damage to the machine which is under consideration. Rolling element bearing is an indispensable part of any machine which finds widespread domestic and industrial applications. Different methods are used for detection and diagnosis of the bearing defects. This research is intended as a tutorial overview of bearing fault detection using vibration analysis. The advent of the microprocessor has enormously advanced the process of vibration data acquisition and analysis in recent years. Measurement that took hours only two decades ago can now be completed in minutes and better decisions made because of better data acquisition and presentation. However, the basic process of measurement and analysis have remained essentially unchanged, just like the machines from which vibrations is measured. The results of the measurement and data analysis need to be compared with known standards or guidelines and decisions made as to whether the machine is......

Words: 1834 - Pages: 8

Premium Essay

Lessons from Bearing Case

...so ur opinion does not go on). * How could the audit planning and procedures mitigate the risk? * Important to maintain bank reputation, profitability; their risk-taking activity (high inherent risk; risky client) * Should have done test of control; the internal control system is not working (high control risk); the moment they know the i/c is weak, should depends on independent parties (own working papers etc. gearing ratio high); self assessment, have sufficient resources (sufficient competent people and sufficient time); if don’t have, should step down from the audit; prior taking the audit commitment, should have communicate with the internal auditors; no particular question was asked and only rely on info given by Bearing staff (not objective, no questionable mind); discussion with auditors from main branch could have help...

Words: 1026 - Pages: 5

Premium Essay

Timken Company

...in the bearing industry by combining more than 100 years of bearing manufacturing and development experience. Because the two companies shared many of the same customers but had few products in common, customers would surely appreciate that Timken’s sales representatives could meet more of their needs. Timken’s potential annual cost savings from consolidating manufacturing facilities and processes were estimated to be more than $80 million. If the price paid for Torrington were too high, Ingersoll-Rand, rather than Timken, would capture the value of the synergies. In addition, given the large size of the acquisition, Timken was concerned about the impact on its balance sheet. If Ingersoll-Rand demanded a cash deal and if Timken raised the money with new debt, the increased leverage would almost certainly prompt credit agencies to downgrade Timken’s investment-grade rating. The Bearing Industry Bearings of various sizes and specifications found their way into everything from space shuttles to household appliances, automobiles, dentist drills, roller skates, and computer disk drives. In 2001, U.S. establishments involved in ball- and roller-bearing manufacturing employed more than 33,000 workers. The bearing industry was facing a variety of complex problems. Policies favoring the steel industry did not always consider the best interests of the bearing industry, which, as manufacturers of secondary steel products, was in the middle of the production chain. Because bearings......

Words: 4307 - Pages: 18

Free Essay

Heartland and Company

...Company cost reduction goals for bearing #B02326620. After the meeting Mr. Walsh began wondering if changes should be made to the way suppliers were being evaluated, if price premiums should be paid to suppliers for performing at a higher level and how business should be allocated among suppliers performing at different levels. These were issues needing further consideration. Founded in 1875, Heartland & Company is one of the U.S.’s oldest industrial organizations. It manufactures agricultural and construction equipment as well as commercial and consumer lawn care equipment. Today, Heartland & Company does business in over 100 countries and had sales in excess of U.S. $12 billion in 2007. Bearings2 Bearings are devices that allow constrained relative rotation or linear movement between two parts. The purpose of bearings is to allow motion with a minimum of friction. Friction creates heat and wear of adjoining parts. Bearings are commonly found in furniture drawers, all types of engines and at the intersection of moving mechanical parts. An example of primitive bearings is the use of tree trunks laid down under heavy stones in prehistoric times. Two common types of bearing include roller (cylindrical roller) bearings and ball (spherical roller) bearings. Bearings can range in size from nearly microscopic (watch bearings) to very large (wheel bearings on large earthmovers). Many of Heartland & Company’s products require bearings. Consequently, they......

Words: 1556 - Pages: 7

Free Essay

Hmt Bearings

...Introduction: HMT Bearings Ltd. ("HMTB") was incorporated in 1964 under the name of Indo Nippon Precision Bearings Limited. The Company was promoted as a state public sector company by the Government of Andhra Pradesh in technical collaboration with M/s Koyo Seiko Co. Ltd., Japan. It commenced commercial production in 1970. In 1980 the Company became a central public sector undertaking after it was made a subsidiary of HMT Limited ("HMTL"). The vision of the company is to produce & market bearings and other engineering components of world class excellence through total performance leadership. Company is strictly adhered to the standards, specifications stipulated in ISO-9001-2000. Objective: To explore the factors responsible for loss of company HMT Bearings Ltd. HMT Bearings began suffering a liquidity crisis in 1999-2000. It worsened 2002 and 2003, primarily due to a massive inventory buildup and accumulation of uncollected receivables. In mid-2002, the government and HMT Group explored shutting down HMT Bearings, taking the losses and pensioning off the employees. But that plan was rejected, out of concern for the impact on employment and high pension costs, and in the face of intense pressure by the Center of India Trade Union in Hyderabad. Rather than shut down HMT Bearings, government-funded bailouts were instituted, debt was converted to equity in order to eliminate the overwhelming interest expense. The key development in 2002 was the decision to seek a......

Words: 974 - Pages: 4

Premium Essay

Nikk

...Condition for Maximum Efficiency 2.12 Screw Jack 2.13 Pivot and Collar Friction 2.13.1 Flat Pivot 2.13.2 Conical Pivot 2.13.3 Collar Bearing 2.14 Clutch 2.15 Types of Clutches 2.15.1 Conical Clutch 2.15.2 Single Plate Clutch 2.15.3 Multi Plate Clutch 2.16 Journal Bearing 2.17 Rolling Friction 2.18 Ball and Roller Bearings 2.19 Summary 2.20 Key Words 2.21 Answers to SAQs 2.1 INTRODUCTION When a body moves or tends to move on another body, a force appears between the surfaces. This force is called force of friction and it acts opposite to the direction of motion. Its line of action is tangential to the contacting surfaces. The magnitude of this force depends on the roughness of surfaces. In engineering applications friction is desirable and undesirable. We can walk on the ground because of friction. Friction is useful in power transmission by belts. It is useful in appliances like brakes, bolts, screw jack, etc. It is undesirable in bearing and moving machine parts where it results in loss of energy and, thereby, reduces efficiency of the machine. In this unit, you will study screw jack, clutches and different type of bearings. 51 Theory of Machines Objectives After studying this unit, you should be able to      know application of friction force, know theory background of screw jack, know different type of bearings, analyse bearings, and know function of cluthes. 2.2 TYPES OF FRICTION There are two types of friction : (a) (b) Friction in......

Words: 6929 - Pages: 28