Contents. Financial Analysis Report

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Operational Costs and Profit/Loss

Average profitability of responding companies was

X.XX% before taxes in 2007, including interest

expense. The table on page 11 notes that interest costs averaged X.XX% as a percent of sales, so average Earnings Before Interest and Taxes (EBIT) was X.XX% for the metalforming industry in 2007. The XX% of responding companies that reported they were profitable in 2007 averaged profits of X.XX% with

average interest expense of X.XX%, or EBIT of X.XX%. Companies with losses averaged –X.XX% with interest expense of X.XX%, or EBIT of –X.XX%.

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High 25% Performers

M iddle 50% Performers

Operational Costs & Profit/Loss

(cont’d)

All respondents were separated into three groups based on profitability: least profitable (lowest 25%), moderately profitable (middle 50%) and most

profitable (highest 25%). Cost breakdowns and profitability were analyzed for each group. These pie charts summarize performance of low, middle and high profit companies and how they differ in terms of cost of sales, sales expense, G&A, other expenses and profit or loss before taxes.

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Detail of Expenses & Profit/Loss for 2007

Averages for Companies with: Averages for Companies with: All Companies (Average) # of Companies Middle 50% Profits

Subtotal of Cost of Sales

Depreciation

Miscellaneous Factory Expenses Insurance

Shipping – Excluding Labor Equipment Rental Occupancy Costs Maintenance Utilities Factory Supplies Fringe Expenses

Supervision & Factory Office Manufacturing Labor Services (Outside) Materials High 25% Profits Low 25% Profits Losses Profits Cost of Sales

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Detail of Expenses & Profit/Loss for 2007

(cont’d)

Averages for Companies with: Averages for Companies with: All Companies (Average) # of Companies Middle 50% Profits

Subtotal of General & Admin. Expenses

Miscellaneous General & Admin. Officer Salaries / Executive Comp. Dues, Subscript., Donations Taxes & Licenses

Professional Services Office Operation

Fringe Expenses – Office Office Salaries High 25% Profits Low 25% Profits Losses Profits

General & Administrative Expenses

A total of XX,XXX employees were employed by participating companies in 2007. Of these employees, XX,XXX (XX%) worked for profitable

companies while X,XXX (XX%) employees worked for companies that experienced losses in 2007.

This compares to a total of XX,XXX employees in 2006, of which XX,XXX (XX%) worked for profitable companies and X,XXX (XX%) for companies with losses.

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Detail of Expenses & Profit/Loss for 2007

(cont’d)

Profit & Loss

Loss . . . as % of Sales Profit. . . as % of Sales

Profit or Loss . . . as % of Sales

Total Costs Subtotal

Bad Debts Charged Off Interest Expense

Other Expenses Subtotal of Sales Expenses

Miscellaneous Advertising

Fringe Expenses – Sales Sales Salaries

Sales Expenses

Averages for Companies with: Averages for Companies with: All Companies (Average) # of Companies Middle 50% Profits High 25% Profits Low 25% Profits Losses Profits

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Operating Ratio Analysis

Capital investment decreased in the last

year after increasing in two previous years. In 2007, the average investment ratio of all participating companies was X.XX% of sales, down from X.XX% in 2006. This is the lowest reported average in more than 20 years. The average for profitable

companies was X.XX%, while companies with losses invested an average of X.XX% of sales. Top-performing companies

invested an average X.XX% of sales. Companies in the lowest quartile of profitability averaged X.XX%.

The table on page 19 includes detailed analysis for various groups of companies.

Capital Inv estment for Fiscal Year

All Companies Companies with Profits

Companies with Losses

Lowest 25% Middle 50% Highest 25%

P e rc ent of S a le s

Capital Inv estment History for All Companies

2007 2006 2005 2004 2003 Year P e rc ent age of S a les

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Operating Ratio Analysis

(cont’d)

Average return on assets (ROA) for all companies was XX.XX% in 2007, higher than 2006.

In 2007, the most profitable 25%

companies reported an average ROA of XX.XX%, while unprofitable companies (lowest 25% companies) reported negative ROA, averaging -X.XX%. The table on page 19 includes detailed analysis for various groups of

companies.

Return on Assets

Return on Assets History for All Companies

2007 2006 2005 2004 2003

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Operating Ratio Analysis

(cont’d)

The average current ratio for all

companies was X.XX in 2007, a slight decrease from last year.

The most profitable 25% of 2007 companies reported an average current ratio of X.XX, while

unprofitable companies (the lowest 25% of 2007 companies), reported a current ratio of X.XX.

The table on page 19 includes

detailed analysis for various groups of companies.

Current Ratio

Current Ratio History for All Companies

2007 2006 2005 2004 2003

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Debt-to-Equity Ratio History for All Companies

2007 2006 2005 2004 2003

Year

Debt-to-Equity Ratio

Operating Ratio Analysis

(cont’d)

The average debt-to-equity ratio for all companies was X.XX in 2007.

The most profitable 25% of 2007 companies reported an average debt-to-equity ratio of X.XX, while unprofitable companies (the

lowest 25%) reported an average of X.XX debt-to-equity ratio.

The table on page 19 includes detailed analysis for various groups of companies.

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Operating Ratio Analysis

(cont’d)

Other Items

Accounts Rec. as % of Sales

Debt-to-Equity Ratio

Employee Information

Current Ratio Return on Assets

Capital Investment for Fiscal Year Value Added Per Employee Average Sales Per Employee

Profit or Loss Before Income Taxes

Averages for Companies with: Averages for Companies with: All Companies (Average) # of Companies Middle 50% Profits High 25% Profits Low 25% Profits Losses Profits

As would be expected, there is a significant correlation between higher sales/employee ($XXX,XXX) and value added/employee ($XXX,XXX) and higher profitability.

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Operational Costs by Company Sales

Comparisons based on company annual sales offer additional opportunity for comparison between companies. Companies with more than $50 million in sales were the most profitable, on average, in 2007 at X.XX%. This was followed by the $5 to $10 million companies with an average of X.XX% profit.

All Participants Less than $5 Million $5 - $10 Million $10 - $20 Million $20 - $50 Million More than $50 Million P e rc ent a ge of S a les

Profit Before Taxes Other Expenses Gen'l & Admin Sales Expenses Cost of Sales

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Profit/Loss History—1985 through 2007

This table tracks the percentage of participating companies with profits vs. losses from 1985 through 2007. Due to the severe manufacturing recession in 2001, XX% of companies experienced losses, the highest percentage in the history of the PMA Report, followed by 2003 when XX% of companies experienced losses. The percentage of companies that experienced losses moderated somewhat in 2002 to XX%, but that was the third highest level, matched by XX% with losses in 1985. The last two years were the best years for profits since 1992-1997 period.

Percentage of Profit and Loss

0% 20% 40% 60% 80% 100% 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Years Loss Profit

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