How far can cost-cutting get you in a slowing economy?
That's the question the U.S. manufacturing sector will answer over the coming weeks. Through the first half of the year, big industrial companies including General Electric Co (GE.N), United Technologies Corp (UTX.N) and Caterpillar Inc (CAT.N) notched impressive profit growth despite shaky demand, largely thanks to their success in boosting productivity.
But that bit of management magic may have run its course - Wall Street expects manufacturers to report a sharp slowdown in earnings growth in the just-ended third quarter, as Europe's deteriorating economy, slowing growth in Asia and the risk of the United States going over a self-imposed fiscal cliff cause customers to throttle back spending even further.
4 comments:
Don't worry, further layoffs have already begun. Capital preservation is the key to weathering the storm.
But crazy Biden is insisting unemployment is down!!! I sure hope Romney/Ryan can pull through the election as after watching Obama 2016, it really does show a different side of Obama and where he plans to take us.....down!
My boss , president of Sara Lee corp. always said " you can't save yourself into a profit"
I still believe it!
They must have forgot the 100,000 or so defense workers getting pink slips Nov2 or has Obama stopped that from becoming public knowledge?
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