Noveon Base Case

By Tom Steinert-Threlkeld  |  Posted 2003-10-01 Print this article Print

The specialty-chemicals company needed to boost its returns, fast.

Noveon Base Case

Headquarters: 9911 Brecksville Rd., Brecksville, OH 44141

Phone Number: (216) 447-5000

Business: Makes and markets a variety of specialty chemicals used in personal-care products, drugs, foods, beverages, packaging, pipes, graphic arts, fabrics, papers and paints.

Chief Information Officer: Todd Nelson, vice president, global information technology

Financials in 2002: Net income of $34.7 million on revenue of $1.07 billion, a net profit margin of 3.2%.

Challenge: Meet growth and profit targets in order to reduce debt of nearly $1 billion taken on when company was created out of BFGoodrich in March 2001, via a leveraged buyout.

Baseline Goals:

  • Reduce debt, from $906 million at start of March 2001.

  • Reduce working capital as percent of sales to 14%, from 23% in 2000.

  • Boost revenue, which has been static at $1.1 billion in first two years of operation.

  • Increase free cash flow, which dropped to $168 million in 2002, from $189 million in 2001.

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    Tom was editor-in-chief of Interactive Week, from 1995 to 2000, leading a team that created the Internet industry's first newspaper and won numerous awards for the publication. He also has been an award-winning technology journalist for the Dallas Morning News and Fort Worth Star-Telegram. He is a graduate of the Harvard Business School and the University of Missouri School of Journalism.

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