Margin Squeeze Reported
From today's L.A. Times, something I've been saying for awhile, and those that paid attention are reaping the benefits. When you hear it in the media, its way too late.
With first-quarter profit reports rolling out in earnest this week, analysts predict that the results overall will show gains compared with a year earlier. But profit growth is slowing at many companies in part because of crude oil and gasoline prices.
At the end of the first quarter, oil prices were 55% higher than at the end of the first quarter of 2004. Companies have seen their operating costs rise, or their sales fall as customers have been forced to spend more on fuel, or both.
First-quarter operating earnings for all the companies in the Standard & Poor's 500 index are expected to rise an average 8.4% from a year earlier, according to Thomson First Call, which surveys analysts' forecasts. That would be down sharply from the 20% growth rate posted in last year's fourth quarter and the 27.5% surge in the first quarter of 2004.
LA Times
With first-quarter profit reports rolling out in earnest this week, analysts predict that the results overall will show gains compared with a year earlier. But profit growth is slowing at many companies in part because of crude oil and gasoline prices.
At the end of the first quarter, oil prices were 55% higher than at the end of the first quarter of 2004. Companies have seen their operating costs rise, or their sales fall as customers have been forced to spend more on fuel, or both.
First-quarter operating earnings for all the companies in the Standard & Poor's 500 index are expected to rise an average 8.4% from a year earlier, according to Thomson First Call, which surveys analysts' forecasts. That would be down sharply from the 20% growth rate posted in last year's fourth quarter and the 27.5% surge in the first quarter of 2004.
LA Times
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