Arab Today, arab today us company profits surge even as economy slows
Last Updated : GMT 14:54:26
Arab Today, arab today
Arab Today, arab today

US company profits surge, even as economy slows

Arab Today, arab today

Arab Today, arab today US company profits surge, even as economy slows

New York - AFP

Major US companies are packing away record profits even as the economy falters, unemployment remains high and the debt-ceiling crisis has shaken confidence in the country, analysts said. In July, corporate giants such as 3M, Caterpillar, Goodyear, Microsoft and Apple reported blockbuster results in the second quarter of 2011, though the stock market still slumped amid fears of an economic slowdown and a possible government default. Of the companies in the S&P 500 list of large-cap firms which have reported their quarterly earnings to date, 72 percent have beaten analysts\' forecasts, according to Standard & Poor\'s analyst Howard Silverblatt. Moreover, if the current trend keeps up, the S&P 500 companies are poised to have their most profitable quarter ever, he said. \"Earnings are basically the only thing holding up the market at this point,\" Silverblatt said. \"They\'re amazing numbers.\" The prosperity of large corporations may seem surprising at a time when many indicators show profound weakness in the world\'s largest economy. The US unemployment rate stands at 9.2 percent, and the government last week said growth in the second quarter was a feeble 1.3 percent, far below economists\' expectations. But analysts say US corporations are doing well in part because they slashed costs during the recession, laying off workers and reining in spending on plants and equipment, which boosted profit margins. \"They got lean and mean,\" said Marc Pado, US market strategist for Cantor Fitzgerald. \"Corporate America is very strong. They were preparing for a downward turn. Everybody was talking about a double-dip recession and they were bracing for that. They were holding on to cash, not hiring new workers and voiding themselves of inventory.\" The total cash held by US non-financial corporations surged to $1.2 trillion at the end of 2010, up 11.2 percent from a year earlier, Moody\'s Investors Service said in a report last week. One reason that companies are holding so much cash -- and not spending it on investments or hiring new workers -- is that they are worried about the shaky economic situation in the United States and Europe. \"Management teams remember the rapid shutdown of the financial markets in 2008 and prefer to hold large cash balances even though the money is earning a low return,\" Moody\'s said. Another notable result from the latest round of earnings reports is that many US companies are showing their best results in fast-growing markets such as Asia and Latin America rather than at home. General Electric, Caterpillar and Dow Chemical were among the US corporate stalwarts which reported strong emerging market sales that helped offset slow growth in the United States in the second quarter. \"Dow\'s broad geographic reach and leadership in many attractive, high-growth end-markets firmly position us to benefit from the megatrends that are defining our future,\" Dow Chemical chief executive Andrew Liveris said last week as the company announced a 73.4 percent rise in quarterly profits. With the weakness of the dollar, which makes American exports cheaper for consumers around the world, that trend is only likely to accelerate in the future, analysts say. \"The big growth is happening outside the US, not inside the US, and you\'ve seen a lot of companies increase their export sales as a percentage of the total,\" said Cantor\'s Pado. Many companies have also offered upbeat forecasts for the second half of the year, a development which has been overlooked by some investors as they focus on the political battle in Washington and the risks of a default. \"Earnings continue to be above expectations. We see a pop up in expectations for the rest of the year. That\'s the positive story,\" said Owen Fitzpatrick, head of US equities at Deutsche Bank Private Wealth Management. However, that has been \"obviously overwhelmed by the continuing debate in the US over the debt ceiling,\" he said.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us company profits surge even as economy slows Arab Today, arab today us company profits surge even as economy slows

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high

GMT 05:17 2017 Saturday ,25 February

Oil world cautious on Trump’s next move

GMT 09:59 2017 Friday ,24 February

Baidu revenue slips anew amid ad clampdown
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday