Harnischfeger Corporation Submission Gaurav Rathore PGP33118

Would you like to hold onto or sell shares of Harnischfeger Corporation?

Yes, I would like to hold the shares of Harnischfeger Corp. The reasons are as follows:

 Foreign markets such as US have positive outlook for the industry

 A significant reduction in manufacturing cost has been observed due to strategic
agreement with the Kobe Steel
 24% improvement in 1984 sales when compared to a year ago
 Increase in backlog of orders as on Oct 1984, indicating strong demand
 Overhauling top management and downsizing and thus better capital utilization
 Debt restructuring in order to ease the pressure of obligations, implying good
amount of bargaining power with the lenders.
 Exiting some unprofitable businesses such as direct manufacturing of construction
cranes where it was not able to effectively leverage economies of scale and
arranging partnership for the same
 Putting itself on a high technology curve in order to benefit from the associated
developments.
 Change in depreciation methodology – Accelerated cost recovery system to straight
line depreciation. This adoption of new depreciation method is acceptable for Plants
and equipment.
Because of the above mentioned reasons, I would like to hold on to the shares of the
company.