2. Are the Company’s quarterly financial statements audited by independent CPAs? How do you know? 3. What periods are being reported on the Company’s interim income statements? Refer to specific months and years. 4.
(a) What level of growth does the Company expect for its Net Sales for the fiscal year 2015? (HINT: Refer to the details of press release, and think carefully about how the Company is describing its sales!) The net sales are actually projected to be -1% to 1% based off of the prevailing exchange rate impacting sales growth. ● The Company expects that sales will increase 4 to 6% in constant currency. ● Based on year-to-date results and prevailing exchange rates, the company continues to anticipate that currency will lower this sales growth range by 5 percentage points. (b) Would the management guidance for fiscal year 2015’s net sales be likely interpreted by investors as an improvement or a deterioration in the Company’s performance, relative to 2014? Deterioration relative to 2014. ● Consumer business sales declined 3% when compared to the second quarter of 2014. In constant currency, the company grew sales 3%, mainly due to increased volume and product mix. ● Industrial business sales rose 1% when compared to the second quarter of 2014, and in constant currency the increase was 7%. Pricing actions taken in response to higher material costs, as well as higher volume and product mix, contributed to the increase. In addition, acquisitions added 1 percentage point of the year-on-year growth in the second quarter.