Enron Scandal

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Background information of Enron Corporation:

Enron Corporation was an American energy company based in the Enron Complex in Downtown Houston, Texas. Enron traces its roots to the Northern Natural Gas Company, which was formed in 1932, in Omaha, Nebraska. It was reorganized in 1979 as the leading subsidiary of a holding company, Inter North . In 1985, it bought the smaller and less diversified Houston Natural Gas. The separate company initially named itself "HNG/Inter North Inc.", even though Inter North was the nominal survivor. It built a large and lavish headquarters complex with pink marble in Omaha (dubbed locally as the "Pink Palace"), that was later sold to Physicians Mutual. However, the departure of ex-Inter North and first CEO of Enron Corp Samuel Segnar six months after the merger allowed former HNG CEO Kenneth Lay to become the next CEO of the newly merged company. Lay soon moved Enron's headquarters to Houston after swearing to keep it in Omaha and began to thoroughly re-brand the business. Lay and his secretary, Nancy McNeil, originally selected the name "Enteron", but, when it was pointed out that the term approximated a Greek word referring to the intestines, it was quickly shortened to "Enron". The final name was decided upon only after business cards, stationery, and other items had been printed reading Enteron. Enron's "crooked E" logo was designed in the mid-1990s by the late American graphic designer Paul Rand.

Here is the background information of Enron Corporation at a glance: Enron Corporation|
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Type| Defunct / Asset-less Shell|
Industry| formerly Energy|
Founded| Omaha, Nebraska, 1985|
Headquarters| Houston, Texas, United States|
Key people| Kenneth Lay, Founder, former Chairman and CEO
Jeffrey Skilling, former President, CEO and COO
Andrew Fastow, former CFO
Rebecca Mark-Jusbasche, former Vice Chairman, Chairman and CEO of Enron International Stephen F. Cooper, Interim CEO and CRO
John J. Ray, III, Chairman|
Revenue| $101 billion (in 2000)|
Website| http://www.enron.com/|
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Products
Enron traded in more than 30 different products, including the following: * Products traded on Enron Online
* Petrochemicals
* Plastics
* Power
* Pulp and paper
* Steel
* Weather Risk Management
* Oil and LNG transportation
* Broadband
* Principal investments
* Risk management for commodities
* Shipping / freight
* Streaming media
* Water and wastewater
It was also an extensive futures trader, including sugar, coffee, grains, hog, and other meat futures. At the time of its bankruptcy filing in December 2001, Enron structured into seven distinct business units.

Early history
As Enron rose to become the largest seller of natural gas in North America by 1992, its gas contracts trading earned earnings before interest and taxes of $122 million, the second largest contributor to the company's net income. The November 1999 creation of the Enron Online trading website allowed the company to better manage its contracts trading business. In an attempt to achieve further growth, Enron pursued a diversification strategy. The company owned and operated a variety of assets including gas pipelines, electricity plants, pulp and paper plants, water plants, and broadband services across the globe. The corporation also gained additional revenue by trading contracts for the same array of products and services it was involved in. As a result, Enron's stock rose from the start of the 1990s until year-end 1998 by 311% percent, a significant increase over the rate of growth in the Standard & Poor 500 index. The stock increased by 56% in 1999 and a further 87% in 2000, compared to a 20% increase and a 10% decline for the index during the same years. By December 31, 2000, Enron’s stock was priced at $83.13 and its market capitalization exceeded $60 billion, 70 times earnings and...
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