1965 1966 3079 1968 1969 1970

Sales 2999 3159 3079 3455 3632 3618

EBIT 767 727 574 764 709 590
Interest exp. 2 4 7 7 10 11
PAT 407 389 314 372 356 329
Net margin 13.6% 12.3% 10.2% 10.8% 9.8% 9.1%
EPS 2.96 2.83 2.24 2.66 2.54 2.29
DPS 2 1.92 1.67 1.83 1.75 1.67
Anvg. Stock price 81.04 80.88 54.42 54.25 44.46 38.29
P/E 27.4 28.6 24.3 20.4 17.5 16.7
S&P 400 P/E 16.8 15.2 17 17.3 17.5 16.5
MV/BV 5.4 5.28 3.26 3.07 2.38 1.98
S&P 400 MV/BV 2.13 1.96 2 2.12 2.07 1.69

Capex 327 531 454 332 391 471

Change in WC (163) 121 102 154 135

Cap. Stru:
ST Debt 0 0 31 57 45 56
LT debt 34 58 95 150 141 160
Total debt 34 58 126 207 186 216
Equity 2190 2317 2409 2540 2685 2790
Total capital 2224 2375 2535 2747 2871 3006

Interest coverage 383.5 181.8 82.0 109.1 70.9 53.6

Bond rating AAA AAA AAA AAA AAA AAA
 1971 1972 1973 1974 1975 1976 1977 1978 1979
3848 4366 5964 6910 7222 8361 9435 10584 12574
644 768 1100 733 574 961 1141 1470 1646
15 20 34 62 126 145 169 139 143
356 414 586 404 271 459 545 797 965
9.3% 9.5% 9.8% 5.8% 3.8% 5.5% 5.8% 7.5% 7.7%
2.44 2.83 4.01 2.73 1.81 3.3 3.69 5.18 6.23
1.67 1.82 1.92 1.83 1.42 1.75 1.92 2.42 2.75
47.92 54.77 58.13 43.92 35.96 46.42 40.04 39.34 42.63
19.6 19.4 14.5 16.1 19.9 14.1 10.9 7.6 6.8
18 18 13.4 9.4 10.8 10.4 9.6 8.2 7.1
2.4 2.61 2.49 1.81 1.46 1.76 1.41 1.26 1.22
1.95 2.1 1.89 1.34 1.31 1.46 1.33 1.2 1.17

454 522 727 1008 1036 876 704 714 864

(39) 63 278 561 (122) 20 243 341 438

0 0 169 320 540 259 229 258 230

236 240 250 793 889 1282 1236 1058 1067
236 240 419 1113 1429 1541 1465 1316 1297
3095 3267 3593 3782 3835 4032 4315 4761 5312
3331 3507 4012 4895 5264 5573 5780 6077 6609

42.9 38.4 32.4 11.8 4.6 6.6 6.8 10.6 11.5

AAA AAA AAA AAA AAA AAA AAA AAA AAA
 1980 1981 1982
13652 22810 33331
1209 2631 3545
111 476 739
744 1081 894
5.4% 4.7% 2.7%
4.73 5.81 3.75
2.75 2.75 2.4
40.32 45.88 37.19
8.5 7.9 9.9
8.4 8.5 10.4
1.09 1.04 0.83
1.26 1.22 1.16

1297 2389 3195

17 2046 (987)

393 445 319

1068 6403 5702
1461 6848 6021
5690 10548 10850
7151 17396 16871

10.9 5.5 4.8

AAA AA AA
Exhibit 6
1983 1984 1985 1986 1987
Net income 1009 1196 1444 1591 1753
Depreciation 2101 2111 2212 2396 2667
Funds from operations 3110 3307 3656 3987 4420

Assets sold 600 600 600 0 0

Decrease in cash 199 -200 -200 -150 -150
Other sources 74 135 135 135 135

Total funding before financing 3983 3842 4191 3972 4405

Use of funds
Capex 2767 3386 4039 4202 4667
Increase in NWC 973 414 594 587 650
Dividends 571 658 794 896 964
other 10 10 10 10 10
Total uses 4321 4468 5437 5695 6291

Financing requirement (338) (626) (1246) (1723) (1886)

Exhibit 7
1970 1971 1972 1973 1974
Gross new bond issues - industrials:
AAA 1650
AA 2415
A 2060
BBB 440

Interest rates:
90-Day CP 7.89 5.12 4.63 8.11 10.06
AAA debt 8.39 7.39 7.1 7.42 8.57
AA 8.65 7.51 7.2 7.52 8.77
BBB 9.74 8.46 7.81 8.17 10.24
Spread : AAA-AA 0.26 0.12 0.1 0.1 0.2
Spread : AAA-BBB 1.35 1.07 0.71 0.75 1.67
termspread 0.5 2.27 2.47 -0.69 -1.49

Maturity distribution of debt issues

Equity and preferred issues:

Cash offerings 9200 13000 13100 11100 7400
Net 6800 13500 13000 9100 4300
Cash offerings by industrials 3500 3200 3100 1500 1000
S&P 500 P/E ratio 16.5 18 18 13.4 9.4
 1975 1976 1977 1978 1979 1980 1981 1982

2875 700 800 275 1550 1750 1852 543

3310 2030 1125 700 1800 2900 2458 3347
5355 2205 960 1310 1500 4220 3887 3075
420 1010 445 210 0 345 0 1357

6.41 5.28 5.45 7.74 10.72 12.37 15.15 11.91

8.7 8.15 7.88 8.63 9.39 11.74 14.3 14.14
8.97 8.32 7.97 8.77 9.61 12.18 14.8 14.52
11.27 9.59 8.67 9.44 10.51 13.69 16.39 16.01
0.27 0.17 0.09 0.14 0.22 0.44 0.5 0.38
2.57 1.44 0.79 0.81 1.12 1.95 2.09 1.87
2.29 2.87 2.43 0.89 -1.33 -0.63 -0.85 2.23

43 30 16 21 30 44 55 62
57 70 84 79 70 56 45 38

11900 13300 14100 14600 17100 28600 34400 38700

10500 10300 6800 -1400 -1900 18200 12000 16400
2400 2800 2300 2900 3600 10400 11900 9600
10.8 10.4 9.6 8.2 7.1 8.4 8.5 10.4