Noveon Base Case
Noveon Base Case Headquarters: 9911 Brecksville Rd., Brecksville, OH 44141Phone Number: (216) 447-5000Business: 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 percent. 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 percent, from 23 percent 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.