Continuing ramblings on economy from yesterday, it is more of the same today
Exxon quarterly profit tumbles 66 percent, shares fall - (Recession - lower demand)
Motorola posts unexpected 2Q profit and says rest of year will see improvement - However on lower sales (missed revenue target), heavy cost cutting (over 8000 layoffs)
Colgate-Palmolive profit tops expectations - Again on Lower Sales and better cost management; Sales lower by 5.5%, volume of goods sold down by 1.5% - Lower consumption
Sony, Sharp post losses, Nintendo loses steam - Folks are not even buying a WII - that hurts
Eastman Kodak moves to 2Q loss as sales slide - Not sure this has anything to do with economy; this iconic company probably has lots of other issues, Still 29% lower sales - ouch
Kellogg profit rises 13 percent in 2Q - Reaping the benefits of downturn - I guess all of us have eat, it is better to eat at home than go out for breakfast. This is a direct result of consumers cutting spending.
Goodyear posts 2Q loss of $221 million, sales drop - Sales 25% lower
When you read more, it is apparent that most companies are giving good guidance on profit expectation for next quarter, however not much on sales guidance. This also makes me believe the companies are still focused on reducing costs aggressively to meet profit expectation and kind of shows the lack of confidence on projecting sales or growth. I feel this feeling of mine is again substantiated by report this morning that - New jobless claims raised more than expected.
As I said in the previous post - if we truly are waiting for stability in housing and homeowners, I feel this this trend has to change. At some point, we have start seeing growth from companies that actually produce goods and services that drive and consume labor.
Thanks
The views represented in this blog are my personal views and are not a "reflection of" or "opinions of" any of the institutions I am associated with or have worked for
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