1. Did the weighted average interest rate increase or decrease between 2008 and 2007?
2. Between 2008 and 2007, did income taxes as a percentage increase or decrease? Why might this be important?
3. What major economic variable or statistic is closely tied to the demand for compressor packages?
4. What major economic variable or statistic is closely tied to the demand for petroleum related fluid transfer products?
5. What is the company doing to reduce costs?
6. Comparing 2008 to 2007, did sales decrease in both product segments?
7. Comparing 2008 to 2007, what accounted for the decrease in gross profit?
8. Comparing 2008 to 2007, what accounted for the increase in selling and administrative expense?
9. Why did other operating expense go from $1.4 million in 2007 to $31.5 million in 2008? Is this a recurring item?
10. What was the bright spot in the fluid transfer product division in 2008?
1- The weighted average interest rate increased. In 2007 the rate was 7.3% and in 2008 it is 7.5%
2 - The income taxes as a percentage increased. (2007 - 23.6%) & (2008 - 28.9%). Higher payment of taxes generally means higher earnings for a company and consequently higher profits and may be increase in dividend.
3 - The demand for compressor & vacuum products tends to correlate with the rate of total industrial capacity utilization and the rate of change of industrial production (industrial machinery) because air is often used as 4th utility in manufacturing process.
4 - The demand for petroleum related fluid transfer products corresponds to market conditions, rig counts and expectations for oil and natural gas prices. Declining energy prices led ...
The solution identity solution from Gardner Denver 10-K Report 2008