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					North America Equity Research
25 September 2009

Compass Minerals International, Inc.
We Raise 2009 EPS Estimates
We believe the current CMP stock price represents a reasonable entry point: the stock has underperformed the market by about (15%) year to date and underperformed Potash Corp. by (20%). Our 2010 EPS forecast of $5.50 could prove conservative because it assumes flat de-icing salt volumes despite a 14% rock salt capacity expansion planned for the 2010-2011 winter season. Our current model also assumes a milder than normal winter. Normal winter conditions and additional volumes from new salt capacity could add up to $0.50/sh to our current EPS projection. Closer to normal SOP demand in 2010 could assist EPS by $0.25 vs. our current estimate. We raised our 2009E pro forma EPS by $0.10 to $5.00 to reflect a lower expected tax rate in the second half of the year, partly offset by reduced SOP volume projection. • Our year-ahead Salt volume forecast may understate the segment's earnings power by $0.25-0.50 per share. Compass continues to expand its production capacity: it is planning to bring on an additional one million tons of rock salt in 2010. If only half of the new capacity is sold in the 2010-2011 winter season, this could benefit 2010 EPS by about $0.25. We note that 750,000 tons of new salt capacity for the 2009-2010 winter season appears to be fully committed as of now, reflecting unmet demand in the CMP’s core geographic areas. Moreover, in case of a normal winter, de-icing volumes could be 0.5 million tons higher in 2010, resulting in $25M additional profits (assuming $50/t price, and 50% incremental margin), or $0.25/sh benefit to EPS. More severe than normal weather could represent additional upside to our forecast. • The Fertilizer business remains the biggest unknown, and we err on the side of a slow volume rebound and conservative pricing for 2010 in our current projections. Our current SOP price forecast of $500/st reflects a conservative MOP price of $480/mt and a $65 premium to the MOP price (vs. the historical premium of $100-150/st). We estimate each $100 per ton price change in the SOP price is worth about $0.75/sh in EPS on 2010 volumes: accordingly, return to the average historical premium of $125/st could increase 2010 EPS by $0.45/sh. Our current SOP volume projection for 2010 is 355,000 st (vs. normalized sales of above 400,000 st). An additional 50,000 st would add $0.25/sh to 2010E EPS. • We rate Compass shares Overweight. The shares sell currently at 10.8 EPS and 6.7x EBITDA on our 2010 forecast compared to 13.0x and 8.9x for POT and 17.9x and 7.5x for the small/mid-cap specialty chemical peers. We expect the company to generate 11% of free cash flow yield in 2010.
Compass Minerals International, Inc. (CMP;CMP US) 2008A 2009E
(Old)

Overweight
CMP, CMP US Price: $59.35 Price Target: $66.00

Specialty and Major Chemicals Jeffrey J. Zekauskas
AC

(1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

Olga Guteneva
(1-212) 622-6488 olga.v.guteneva@jpmorgan.com J.P. Morgan Securities Inc.
Price Performance
65 55 $ 45 35
Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

YTD Abs 1.2%

1m 12.9%

3m 8.7%

12m 1.9%

2009E
(New)

2010E

EPS Reported ($) Q1 (Mar) Q2 (Jun) Q3 (Sep) Q4 (Dec) FY

1.48 0.05 0.87 2.41 4.81

1.85A 0.42A 0.61A 1.92A 4.81A

1.85A 0.42A 0.65A 1.99A 4.91A

5.50

Source: Company data, Reuters, J.P. Morgan estimates.

Company Data Price ($) Date Of Price 52-week Range ($) Mkt Cap ($ mn) Fiscal Year End Shares O/S (mn) Div. Yield Price Target ($) Price Target End Date

59.35 24 Sep 09 65.74 - 36.42 1,970.48 Dec 33 2.4% 66.00 31 Dec 10

See page 8 for analyst certification and important disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

Details
We are raising our 2009 pro forma EPS estimate for Compass Minerals to $5.00 from $4.90 to reflect lower tax rate of 30.5% in the second half of the year versus our prior estimate of a 37.4% rate (or +$0.25/sh), partly offset by lower operating income of $7M (or -$0.15/sh). Lower profits reflect reduced expectation for the SOP volumes in the second half of 2009 as a result of continuing weakness in the fertilizer markets. We maintain our 2010 EPS projection of $5.50. Earnings could be up to $0.50/sh higher should Compass be able to sell an additional 0.5 million tons of rock salt (of one million new capacity expected in 2010) and if winter weather conditions are close to normal. In addition, closer to normal SOP demand could add up to $0.25/sh to our current estimate.
Table: Compass Minerals: Earnings Review and Outlook
$ in millions, except EPS 3Q:09E Previous $179.3 41.0 66.6 71.7 21.8 49.8 10.6 $29.9 18.9 (9.5) $39.2 21.9% (6.9) 0.0 32.3 (12.1) 37% 20.2 $0.61 0.00 $0.61 33.3 3Q:09E Current $174.9 40.6 63.6 70.7 21.8 48.9 10.6 $32.0 15.8 (9.5) $38.3 21.9% (6.9) 0.0 31.3 (9.7) 31% 21.6 $0.65 0.00 $0.65 33.3 4Q:09E Previous $341.8 89.3 107.7 144.8 25.3 119.5 10.6 $92.6 22.7 (6.4) $108.9 31.9% (6.7) 0.0 102.2 (38.2) 37% 64.0 $1.92 0.00 $1.92 33.3 4Q:09E Current $326.6 84.1 105.4 137.0 25.3 111.7 10.6 $84.8 22.7 (6.4) $101.1 31.0% (6.5) 0.0 94.5 (28.4) 30% 66.2 $1.99 0.00 $1.99 33.3 2008 $1,167.7 341.1 470.4 397.6 82.0 315.6 41.4 $191.7 117.7 (35.2) $274.2 23.5% (41.6) 0.9 233.5 (70.0) 30% 159.5 $4.93 (0.12) $4.81 33.2 2009E Previous $989.7 258.7 344.1 407.6 87.9 319.6 42.0 $219.2 93.4 (35.0) $277.6 28.0% (27.7) 0.2 250.0 (87.1) 35% 163.0 $4.90 (0.09) $4.81 33.3 2009E Current $970.0 253.2 338.8 398.8 87.9 310.8 42.0 $213.5 90.3 (35.0) $268.8 27.7% (27.6) 0.2 241.4 (74.9) 31% 166.5 $5.00 (0.09) $4.91 33.3 2010E Previous $1,040.9 254.7 362.7 423.4 90.6 332.8 42.4 $225.0 97.4 (32.0) $290.4 27.9% (24.7) 0.0 265.7 (81.1) 31% 184.5 $5.50 0.00 $5.50 33.5 2010E Current $1,046.2 261.0 362.4 422.8 90.6 332.3 42.4 $227.6 94.2 (32.0) $289.9 27.7% (24.1) 0.0 265.7 (81.2) 31% 184.6 $5.50 0.00 $5.50 33.5

Net sales Shipping and handling Operating costs and expenses Gross profit Selling, development & administrative EBITDA D&A Operating Income By Segment Salt Specialty Potash Eliminations Operating income Operating Margin Interest expense - net Net other income (expense) Pretax income Taxes (accrual)/ benefit Tax Rate Net Income Diluted EPS, adjusted Non-recurring items EPS, GAAP Diluted Common Shares

Source: Company reports and J. P. Morgan estimates. EPS excludes all non-recurring items.

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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

Table: Compass Minerals: Key Segment Operating Data
Shipments in -000 short tons Selling prices in dollars per short ton Shipments and Selling Prices Salt (000 tons) Highway Deicing General Trade Total % change y-o-y Average Price ($/st) Highway Deicing % change y-o-y General Trade % change y-o-y Total Shipments ($/st) % change y-o-y Specialty Potash (000 tons) Shipments % change y-o-y Average Price ($/st) % change y-o-y 3Q:09E Previous 1,286 582 1,868 (24.8%) 3Q:09E Current 1,286 582 1,868 (24.8%) 4Q:09E Previous 3,406 789 4,196 (16.6%) 4Q:09E Current 3,157 789 3,946 (21.6%) 2008 2009E Previous 9,646 2,501 12,147 (19.5%) 2009E Current 9,397 2,501 11,898 (21.2%) 2010E Previous 9,164 2,551 11,714 (3.6%) 2010E Current 9,524 2,551 12,075 1.5%

12,237 2,852 15,089 18.0%

$45.00 13.3% $145.00 6.4% $76.17 17.4%

$45.00 13.3% $147.00 7.8% $76.79 18.3%

$51.50 8.4% $155.00 4.0% $70.97 8.9%

$50.75 6.8% $155.00 4.0% $71.60 9.8%

$43.57 11.8% $136.81 7.7% $62.14 8.7%

$47.08 8.0% $149.23 9.1% $69.37 11.6%

$46.71 7.2% $149.70 9.4% $69.68 12.1%

$49.74 5.7% $152.22 2.0% $73.17 5.5%

$49.17 5.3% $152.69 2.0% $72.55 4.1%

49 (50.0%) $700.0 (7.0%)

41 (58.0%) $700.0 (7.0%)

59 0.0% $700.0 (28.2%)

59 0.0% $700.0 (28.2%)

391 (7.6%) $595.6 84.6%

186 (52.4%) $817.4 37.3%

178 (54.5%) $822.7 38.1%

372 100.0% $500.0 (38.8%)

355 99.6% $500.0 (39.2%)

Source: Company reports and J. P. Morgan estimates.

Salt Volumes
Our current salt volume assumptions may prove to be conservative. We assume 2009-2010 winter season (Q4:09 and Q1:10) shipments of 6.9 million tons, which includes 0.6 million tons from the Goderich mine expansion (new added capacity 0.75 m tons). The base sales volumes of 6.3 million tons compare with weatheradjusted sales of 7.1 and 7.5 million tons for the previous two seasons. We note that 2008-2009 season shipments of 7.1 million tons are probably understated because of the early buying, which fell under the third quarter. The 2010-2011 winter season volumes of 7.2 million tons include 0.8 million tons of additional capacity (total capacity being added in 2010 is one million tons), implying lower than normal base shipments of 6.4 million tons. There is a potential $0.50/sh upside to our 2010 projections should winter season sales volumes be at a normalized level of ~7.5 million tons versus our current base volume forecast of 6.4 million tons. The additional one million tons would generate about $50M in revenues at a $50/t selling price. Assuming 50% incremental operating margin, 30% tax rate, and 33.5 share count, 2010 EPS could benefit by $0.50/sh.

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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

Table: Compass Minerals: Historical and Forecast Annual Winter De-icing Salt Shipments
In -000 short tons Fourth Quarter Winter 2010-11E 2009-10E 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 3,410 3,157 4,154 4,034 2,601 4,579 3,589 3,308 2,699 3,047 First Quarter 3,804 3,729 3.729 5,138 4,112 3,584 4,861 4,679 4,378 3,298 Full Winter 7,214 6,886 7,883 9,172 6,713 8,163 8,450 7,987 7,077 6,345 Weather Effect 0 0 764 1,602 New Capacity 800 600 Implied Base Shipments 6,414 6,286 7,119 7,570

Source: Company reports and J. P. Morgan estimates.

SOP Volume and Price
Our 2010 EPS forecast may be underestimated by ~$0.45/sh as a result of overly conservative SOP price assumptions. SOP has historically traded at a premium to MOP: average premium for the 1999-2007 period was $133/st. Our current 2010 projections assume $64/sh premium. Should the premium stay at historical $125 level, this could benefit 2010 EPS by $0.45/sh on 2010 volumes.
Table: MOP and SOP Producer Realized prices
Product prices, $/st MOP, N.A. (POT) SOP, average (CMP) SOP Premium 1999 $80 $172 $92 2000 $73 $179 $106 2001 $73 $203 $131 2002 $70 $207 $137 2003 $73 $220 $147 2004 $97 $227 $130 2005 $143 $260 $116 2006 $153 $292 $139 2007 $171 $323 $151 2008 $401 $596 $195 2009E $447 $817 $370 2010E $436 $500 $64

Source: Company reports. Note: MOP price for Potash Corp; SOP price for Compass Minerals.

Return to normal SOP volumes in 2010 could add $0.25/sh to our EPS estimate at the projected price of $500/st. Our current 2010 SOP volume projection is 355,000 st versus normalized sales of above 400,000 st. An extra 50,000 st would result in $25M of additional operating income: assuming 50% incremental operating margin, 30% tax rate and 33.5 share count, 2010 EPS could benefit by $0.25/sh.

Valuation and Rating Analysis
We rate CMP shares Overweight. We view the stock as inexpensive at the current price: CMP trades at 6.7x our 2010 EV/EBITDA estimate compared to 8.9x for Potash Corp and to a range of 5.2-10.2x (an average of 7.5x) for many small/mid-cap specialty chemical companies with strong balance sheets and favorable growth prospects. We expect Compass to generate 10.7% of its stock price in free cash flow in 2010 before payment of an annual dividend of $1.42 per share (2.4% yield). Our December 2010 price target for Compass Minerals is $66.00, which represents a P/E multiple of 12.0x and an EV/EBITDA multiple of 7.4x based on our 2010 EBITDA estimate. We believe that these multiples reflect a fair value of CMP shares, given multiples of 17.9x and 7.5x respectively for the small/mid-cap specialty peer group, and 13.0x and 8.9x respectively for Potash Corp. We believe

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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

that a 1-1.5x discount to Potash Corp. is justified because of CMP’s much smaller potash business and weather-dependent Salt business.

Risks to Our Rating
Sales and profitability in the highway de-icing salt business are seasonal and weather dependent. Timing issues as well as the duration and severity of the de-icing season weather could cause results in the Salt segment to differ significantly from our expectations. Accordingly, a short or warm winter period could lead to Salt operating profits below our forecast and the shares could trade lower. Should SOP volumes rebound slower than we project, profits would be lower then we expect and the share price could come under pressure.

Company Description
Figure: 2008 Sales by Segment

Source: Company data.

Compass Minerals is one of the largest producers of salt in North America and the United Kingdom and a leading producer of specialty potash fertilizer, with 2008 revenues of $1.17 billion and operating income of $274 million. CMP operates in two main segments, (1) Salt and (2) Specialty Potash. The company’s Salt segment shipped 15.1 million short tons of products in 2008, accounting for approximately 80% of company revenues and approximately 62% of operating income (before corporate expenses). Specialty potash is the largest marketer of sulfate of potash (SOP) in the US. Compass became a public company in December 2003 via the sale of 16.7 million shares from existing shareholders at $13 per share. A group led by Apollo Management originally purchased the salt business in addition to the Great Salt Lake specialty potash assets from IMC Global in late 2001 for approximately $640 million. The Salt segment is the second-largest marketer of salt in the US and Canada and the largest in the UK, with 2008 shipments of 15.1 million short tons. Approximately 58% of 2008 revenues come from its high-margin highway de-icing business for state and local governments, where it is the largest marketer in both the US and UK. We believe CMP operates the largest and lowest-delivered cost rock salt mines in its prime markets in the US Midwest and UK. The remaining 42% of 2008 revenues come from sales into General Trade markets, including table salt, water softening, consumer de-icing, agricultural, and chemical feedstock. During 2008, total Salt revenues totaled $923 million with operating income of $192 million and EBITDA of $221 million.

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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

The Specialty Fertilizer segment is the largest marketer of sulfate of potash (SOP) in the US, with 2008 shipments of 391,000 short tons. SOP is a specialty fertilizer utilized instead of commodity potash (i.e., potassium chloride) in a number higher-value crops where chloride sensitivity is a concern, including nuts, vegetables and fruits, tea, tobacco, and turf grass. We estimate the global market for specialty potash fertilizer is approximately 8-9% of the 55 million short ton global potash market. Approximately 75% of 2008 sales were sold domestically to fertilizer distributors, manufacturers, and dealers with the balance sold offshore. Compass coproduces SOP along with salt at its low-cost Great Salt Lake (GSL) Minerals complex in Ogden, Utah, the largest in North America with production capacity of approximately 450,000 short tons. GSL production benefits from large-scale, use of solar evaporation, and manufacturing cost savings from extracting multiple products (i.e., salt, SOP, and magnesium chloride) from a single production process. In late 2003, CMP purchased the intangible assets of the SOP business of the former IMC Global, North America’s second largest SOP producer, for approximately $24.5 million, including customer lists and production rights (i.e., no production assets). The segment recorded 2008 revenues of $233 million with operating profit of $118 million and EBITDA of $128 million.

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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

Compass Minerals International, Inc.: Summary of Financials
Income Statement - Annual
Revenues Cost of products sold (ex. D&A) Gross profit SG&A D&A Operating Income EBITDA Net interest income / (expense) Other income / (expense) Pretax income Income taxes Net income - GAAP Net income - recurring Diluted shares outstanding EPS - GAAP EPS - recurring

FY08A FY09E FY10E FY11E
1,168 812 356 82 41 274 316 (42) 1 234 (70) 160 164 33 4.81 4.93 970 592 378 88 42 269 311 (28) 0 241 (75) 167 167 33 4.91 5.00 5.50 5.50 -

Income Statement - Quarterly
Revenues Cost of products sold (ex. D&A) Gross profit SG&A D&A Operating Income EBITDA Net interest income / (expense) Other income / (expense) Pretax income Income taxes Net income - GAAP Net income - recurring Diluted shares outstanding EPS - GAAP EPS - recurring

1Q09A 2Q09A 3Q09E 4Q09E
1.85 1.85 0.42 0.51 0.65 0.65 1.99 1.99

Balance Sheet and Cash Flow Data
Cash and cash equivalents Accounts receivable Inventories Other current assets Current assets PP&E Total assets Total debt Total liabilities Shareholders' equity Net Income (including charges) D&A Change in working capital Other Cash flow from operations Capex Free cash flow Cash flow from investing activities Cash flow from financing activities Dividends Dividend yield

FY08A FY09E FY10E FY11E
35 210 123 22 390 383 823 496 758 64 160 41 18 246 (68) 178 (67) (154) 1.34 2.3% 51 161 231 35 478 448 981 493 767 213 164 42 (96) 152 (90) 62 (94) (48) 1.42 2.4% -

Ratio Analysis
Sales growth EBIT growth EPS growth Gross margin EBIT margin EBITDA margin Tax rate Net margin Net Debt / EBITDA Net Debt / Capital (book) Return on assets (ROA) Return on equity (ROE) Return on invested capital (ROIC) Enterprise value / Sales Enterprise value / EBITDA Free cash flow yield P/E

FY08A

FY09E FY10E FY11E
10.8 -

36.2% (16.9%) 90.0% (2.0%) 136.6% 1.5% 34.0% 23.5% 27.0% 30.0% 14.0% 1.5 87.7% 7.9 8.8% 12.3 41.1% 27.7% 32.0% 31.0% 17.2% 1.4 67.4% 7.9 3.0% 12.1

Source: Company reports and J.P. Morgan estimates. Note: $ in millions (except per-share data). Fiscal year ends Dec

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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

Analyst Certification: The research analyst(s) denoted by an “AC” on the cover of this report certifies (or, where multiple research analysts are primarily responsible for this report, the research analyst denoted by an “AC” on the cover or within the document individually certifies, with respect to each security or issuer that the research analyst covers in this research) that: (1) all of the views expressed in this report accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s) in this report.

Important Disclosures
• • • • • Lead or Co-manager: JPMSI or its affiliates acted as lead or co-manager in a public offering of equity and/or debt securities for Compass Minerals International, Inc. within the past 12 months. Client of the Firm: Compass Minerals International, Inc. is or was in the past 12 months a client of JPMSI; during the past 12 months, JPMSI provided to the company investment banking services, non-investment banking securities-related service and nonsecurities-related services. Investment Banking (past 12 months): JPMSI or its affiliates received in the past 12 months compensation for investment banking services from Compass Minerals International, Inc.. Investment Banking (next 3 months): JPMSI or its affiliates expect to receive, or intend to seek, compensation for investment banking services in the next three months from Compass Minerals International, Inc.. Non-Investment Banking Compensation: JPMSI has received compensation in the past 12 months for products or services other than investment banking from Compass Minerals International, Inc.. An affiliate of JPMSI has received compensation in the past 12 months for products or services other than investment banking from Compass Minerals International, Inc..

Compass Minerals International, Inc. (CMP) Price Chart
144

Date
N $50 OW $70 OW N OW N $58 N $50 OW $66

Rating Share Price ($)
32.66 72.13 42.28 52.68 57.01 57.94 49.60 50.55 N OW OW N N N OW

Price Target ($)
70.00 50.00 58.00 50.00 66.00

120

13-Aug-07 OW 18-Apr-08 03-Oct-08 30-Oct-08 15-Jan-09 11-Feb-09 29-Apr-09 31-Jul-09

96 Price($) 72

48

24

0 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09

Source: Reuters and J.P. Morgan; price data adjusted for stock splits and dividends. This chart shows J.P. Morgan's continuing coverage of this stock; the current analyst may or may not have covered it over the entire period. J.P. Morgan ratings: OW = Overweight, N = Neutral, UW = Underweight.

Explanation of Equity Research Ratings and Analyst(s) Coverage Universe: J.P. Morgan uses the following rating system: Overweight [Over the next six to twelve months, we expect this stock will outperform the average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Neutral [Over the next six to twelve months, we expect this stock will perform in line with the average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] Underweight [Over the next six to twelve months, we expect this stock will underperform the average total return of the stocks in the analyst’s (or the analyst’s team’s) coverage universe.] The analyst or analyst’s team’s coverage universe is the sector and/or country shown on the cover of each publication. See below for the specific stocks in the certifying analyst(s) coverage universe.

Coverage Universe: Jeffrey J. Zekauskas: Agrium (AGU), Air Products and Chemicals (APD), Albemarle Corporation (ALB), Ashland Inc. (ASH), Avery Dennison (AVY), CF Industries Holdings, Inc. (CF), Cabot Corporation (CBT), Compass Minerals International, Inc. (CMP), Dow Chemical (DOW), DuPont (DD), Eastman Chemical Company (EMN), Ecolab Inc. (ECL), Georgia Gulf (GGC), H.B. Fuller (FUL), Huntsman Corporation (HUN), Innophos (IPHS), Innospec
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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

(IOSP), International Flavors & Fragrances (IFF), Lubrizol Corporation (LZ), Minerals Technologies (MTX), Monsanto (MON), Nalco (NLC), Novozymes (NZYMb.CO), Pall Corporation (PLL), Polypore International (PPO), Potash Corp. (POT), Praxair (PX), RPM International Inc. (RPM), Scotts Miracle-Gro Co. (SMG), Sherwin-Williams (SHW), Synthesis Energy Systems, Inc. (SYMX), Terra Industries (TRA), The Mosaic Company (MOS), Valspar Corp (VAL), WD-40 Company (WDFC), Westlake Chemical Corp (WLK)
J.P. Morgan Equity Research Ratings Distribution, as of June 30, 2009 Overweight (buy) 36% 55% 36% 77% Neutral (hold) 46% 56% 52% 72% Underweight (sell) 18% 42% 12% 60%

JPM Global Equity Research Coverage IB clients* JPMSI Equity Research Coverage IB clients*

*Percentage of investment banking clients in each rating category. For purposes only of NASD/NYSE ratings distribution rules, our Overweight rating falls into a buy rating category; our Neutral rating falls into a hold rating category; and our Underweight rating falls into a sell rating category.

Valuation and Risks: Please see the most recent company-specific research report for an analysis of valuation methodology and risks on any securities recommended herein. Research is available at http://www.morganmarkets.com , or you can contact the analyst named on the front of this note or your J.P. Morgan representative. Analysts’ Compensation: The equity research analysts responsible for the preparation of this report receive compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues, which include revenues from, among other business units, Institutional Equities and Investment Banking.

Other Disclosures
J.P. Morgan is the global brand name for J.P. Morgan Securities Inc. (JPMSI) and its non-US affiliates worldwide. Options related research: If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the Option Clearing Corporation’s Characteristics and Risks of Standardized Options, please contact your J.P. Morgan Representative or visit the OCC’s website at http://www.optionsclearing.com/publications/risks/riskstoc.pdf. Legal Entities Disclosures U.S.: JPMSI is a member of NYSE, FINRA and SIPC. J.P. Morgan Futures Inc. is a member of the NFA. JPMorgan Chase Bank, N.A. is a member of FDIC and is authorized and regulated in the UK by the Financial Services Authority. U.K.: J.P. Morgan Securities Ltd. (JPMSL) is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority. Registered in England & Wales No. 2711006. Registered Office 125 London Wall, London EC2Y 5AJ. South Africa: J.P. Morgan Equities Limited is a member of the Johannesburg Securities Exchange and is regulated by the FSB. Hong Kong: J.P. Morgan Securities (Asia Pacific) Limited (CE number AAJ321) is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission in Hong Kong. Korea: J.P. Morgan Securities (Far East) Ltd, Seoul branch, is regulated by the Korea Financial Supervisory Service. Australia: J.P. Morgan Australia Limited (ABN 52 002 888 011/AFS Licence No: 238188) is regulated by ASIC and J.P. Morgan Securities Australia Limited (ABN 61 003 245 234/AFS Licence No: 238066) is a Market Participant with the ASX and regulated by ASIC. Taiwan: J.P.Morgan Securities (Taiwan) Limited is a participant of the Taiwan Stock Exchange (company-type) and regulated by the Taiwan Securities and Futures Bureau. India: J.P. Morgan India Private Limited is a member of the National Stock Exchange of India Limited and Bombay Stock Exchange Limited and is regulated by the Securities and Exchange Board of India. Thailand: JPMorgan Securities (Thailand) Limited is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Indonesia: PT J.P. Morgan Securities Indonesia is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM. Philippines: J.P. Morgan Securities Philippines Inc. is a member of the Philippine Stock Exchange and is regulated by the Securities and Exchange Commission. Brazil: Banco J.P. Morgan S.A. is regulated by the Comissao de Valores Mobiliarios (CVM) and by the Central Bank of Brazil. Mexico: J.P. Morgan Casa de Bolsa, S.A. de C.V., J.P. Morgan Grupo Financiero is a member of the Mexican Stock Exchange and authorized to act as a broker dealer by the National Banking and Securities Exchange Commission. Singapore: This material is issued and distributed in Singapore by J.P. Morgan Securities Singapore Private Limited (JPMSS) [MICA (P) 132/01/2009 and Co. Reg. No.: 199405335R] which is a member of the Singapore Exchange Securities Trading Limited and is regulated by the Monetary Authority of Singapore (MAS) and/or JPMorgan Chase Bank, N.A., Singapore branch (JPMCB Singapore) which is regulated by the MAS. Malaysia: This material is issued and distributed in Malaysia by JPMorgan Securities (Malaysia) Sdn Bhd (18146-X) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets Services License issued by the Securities Commission in Malaysia. Pakistan: J. P. Morgan Pakistan Broking (Pvt.) Ltd is a member of the Karachi Stock Exchange and regulated by the Securities and Exchange Commission of Pakistan. Saudi Arabia: J.P. Morgan Saudi Arabia Ltd. is authorised by the Capital Market Authority of the Kingdom of Saudi Arabia (CMA) to carry out dealing as an agent, arranging, advising and custody, with respect to securities business under licence number
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Jeffrey J. Zekauskas (1-212) 622-6644 jeffrey.zekauskas@jpmorgan.com

North America Equity Research 25 September 2009

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