We need to hear something. What is going on with the restructuring? A little positive PR spin would be worth a dollar or so per share. I agree that SLE has turned into a welefare state. I have a friend who is a VP and the guy keeps getting rewarded while his division hasn't made a number in years. Brenda - what say about a little accountability? Let's shake things up girlfriend!
It looks like the stock holders are sitting out there waiting to hear something. If the future is also no news, then shareholders will bail. Nothing from Top Management to say "Hang in there".
I am prepared to go with the new spin-off company and would like to do it now. I realize that that government states that you have to break out all the divisions and develop P&L's for them for the past 5 years so you can determine the true value of the Division.
The question is: If you knew you were going to spin them off, then why not do a proforma P&L on the spin-off divisions, before you announce the break up, so you get a head start on valuation of the separate divisions.
It almost looks like Sara Lee is willing to let the stock drop, they buy more of their stock back (at a deflated price), then split off the divisions.
2004--sales $6.44 billion---op. income $549 million---margin 9%---ad/promo expense $312 million 2003--sales $6.39 billion---op. income $763 million---margin 12%---ad/promo expense $338 million 2002--sales $6.45 billion---op. income $596 million---margin 9%---ad/promo expense $291 million 2001--sales $7.45 billion---op. income $1.4 billion---margin 19%---ad/promo expense $367 million 2000--sales $7.28 billion---op. income $844 million---margin 12%---ad/promo expense $381 million
If you back out the european apparel sales you have sales of $4.31 billion in 2004.
In the last few years cotton costs have increased 106% but have eased off a bit this year.
The top 20 customers of the Branded Apparel segment represent approximately 58% of the segment�s sales. Approximately 22% of this segment�s sales are to Wal-Mart stores.
of course the new company will have SG&A expense that will not show up in prior year numbers, and they will have a smaller tax rate, so no numbers will be exact. But this sould give a general view of the financial ability of the apparel assets.