American Greetings Corporation: Consumer Packaged Goods Company Profile, SWOT & Financial Report by Canadean

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									American Greetings Corporation

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American Greetings Corporation                                                 Financial Snapshot

                                                                               Operating Performance
Fast Facts
                                        One American Road, CLEVELAND, 44144-   The company reported revenue of US$1,592.57
Headquarters Address
                                        2398,United States of America          million during the fiscal year 2011 (2011). The
                                                                               company's revenue declined at a compounded rate of
Telephone                               + 1 216 2527300
                                                                               2.94% during 2007–2011, with an annual decline of
                                                                               2.65% over 2010. In 2011, the company recorded an
Fax                                     + 1 216 2526778                        operating margin of 10.97%, as against 8.50% in
                                                                               2010.
Website                                 www.corporate.americangreetings.com

Ticker Symbol, Stock Exchange           AM, New York Stock Exchange            Revenue and Margins

Number of Employees                     7,400

Fiscal Year End                         February

Revenue (in US$ million)                1,592.57




SWOT Analysis

Strengths                               Weaknesses
                                                                               Return on Equity
Extensive product and brand portfolio   Dependence on few customers
                                                                               The company recorded a return on equity (ROE) of
Focused social expression product                                              11.39% for the fiscal year 2011, as compared to its
                                        Litigations                            peers, CSS Industries, Inc. (Ticker: CSS), Shutterfly,
portfolio
                                                                               Inc. (Ticker: SFLY) and Clinton Cards Plc (Ticker:
Strong distribution network                                                    CC), which recorded ROEs of 2.38%, 2.31% and -
                                                                               65.44% respectively. Furthermore, the company
                                                                               reported an operating margin of 10.97% in 2011.
Opportunities                           Threats

Acquisition of Watermark                Changing trends in retail industry     Return on Equity

Emerging markets provide opportunity Competition in digital photography
for growth                           services

Growth in web-based format              Foreign currency fluctuations




                                                                               Liquidity Position

                                                                               The company reported a current ratio of 2.09 in 2011,
                                                                               as compared to its peers, CSS Industries, Inc.,
                                                                               Shutterfly, Inc. and Clinton Cards Plc, which recorded
                                                                               current ratios of 4.23, 2.61 and 0.72 respectively. As
                                                                               of February 2011, the company recorded cash and
                                                                               short-term investments of worth US$215.84 million,
                                                                               against zero current debt. The company reported a
                                                                               debt to equity ratio of 0.30 in 2011 as compared to its
                                                                               peers, CSS Industries, Inc., Shutterfly, Inc. and
                                                                               Clinton Cards Plc, which recorded debt to equity
                                                                               ratios of 0.00, 0.00 and 2.33 respectively.




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American Greetings Corporation - SWOT Profile                                                                          Page 1
American Greetings Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..............
								
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