Farmington Industries Essay
Farmington Industries is a small, publicly traded U.S.-based corporation, which produces programmable control instruments. With high interests in Mexico, the company has expanded to four Mexican-related businesses, which are listed below along with their specific function:
• The Maquiladora Assembly Facility – This facility is used to assemble imported U.S.-manufactured components into final products for sale mainly in the U.S. Seeing as the majority of sales occur in the U.S., this facility generates its revenues in USD.
• Farmington (Antilles) N.V. – This facility is an offshore “shell corporation” by which the U.S. parent exports U.S.-manufactured products to Mexico and other countries. …show more content…
In my opinion, the conference call did not go very well, as Farmington’s executives did not answer all of the Wall Street analyst’s questions very well. One executive was unable to answer a question about how the peso devaluation would affect their earnings per share for 1994-1995. When reading the transcript, he seemed quite unprepared for a standard investment-banking question, which most investors would ask. This shows a lack of knowledge about their current situation, and reflects quite poorly on them. When looking at the standpoint of an investor,