...for tightening belts alone won’t work! Some of the world’s leading companies face testing times in 2009
Leaders are meant to set the pace and make others follow. But the way leaders (beyond usual suspects like the Detroit trio) in diverse global industries are faring in this economic ‘winter’, we are hoping that there aren’t too many followers in that sense! While 2008 was seemingly difficult for them; 2009 too hasn’t brought much relief. As the misery of these leaders continues, we take a look of what is (or rather should be) their resolution for 2009.
Sony Corp. is one of the leading sufferers, which is expected to report its first massive loss of a whopping $1.1 billion in the last 14 years! Richard Ptak, Managing Partner, Ptak, Noel & Associates, avers, “Strong Yen versus weak Euro and dollar made their products expensive and the meltdown in US and European markets further augmented the condition.” From the same land, Toyota Motor Corp. too slashed its net profit forecast for the year ending March 2009 to ¥550 billion (half its earlier projection of ¥1.25 trillion). It has also decided to halve its domestic production to 9,000 units per day, after it suspended 12 factories for 11 days in February & March to balance inventories.
Arcelor Mittal – world’s largest producer of steel, was forced to cuts its steel production by almost 30% due to falling steel prices, dampening steel demand in US, Europe and other emerging markets. What was once the world’s largest bank, Citigroup posted Q4 losses to the tune of $8.29 billion, twice as much as analysts’ expectations. Such is the predicament of Citi, which following the enormous loss, Vikram Pandit, CEO, Citigroup is contemplating to split the multinational bank into two separate units. Blue-chip company Intel has also warned that its Q4 results will be $8.2 billion, below its guidance of $9 billion issued in November. The forecast was made on the basis of fall in end-consumer demand. Time Warner Inc. – New York-based media conglomerate, owing to credit crisis and fall in advertising revenues, will have to undergo impairment charges of $25 billion by writing down the value of its publishing, cable and Internet businesses.
Leaders are meant to set the pace and make others follow. But the way leaders (beyond usual suspects like the Detroit trio) in diverse global industries are faring in this economic ‘winter’, we are hoping that there aren’t too many followers in that sense! While 2008 was seemingly difficult for them; 2009 too hasn’t brought much relief. As the misery of these leaders continues, we take a look of what is (or rather should be) their resolution for 2009.
Sony Corp. is one of the leading sufferers, which is expected to report its first massive loss of a whopping $1.1 billion in the last 14 years! Richard Ptak, Managing Partner, Ptak, Noel & Associates, avers, “Strong Yen versus weak Euro and dollar made their products expensive and the meltdown in US and European markets further augmented the condition.” From the same land, Toyota Motor Corp. too slashed its net profit forecast for the year ending March 2009 to ¥550 billion (half its earlier projection of ¥1.25 trillion). It has also decided to halve its domestic production to 9,000 units per day, after it suspended 12 factories for 11 days in February & March to balance inventories.
Arcelor Mittal – world’s largest producer of steel, was forced to cuts its steel production by almost 30% due to falling steel prices, dampening steel demand in US, Europe and other emerging markets. What was once the world’s largest bank, Citigroup posted Q4 losses to the tune of $8.29 billion, twice as much as analysts’ expectations. Such is the predicament of Citi, which following the enormous loss, Vikram Pandit, CEO, Citigroup is contemplating to split the multinational bank into two separate units. Blue-chip company Intel has also warned that its Q4 results will be $8.2 billion, below its guidance of $9 billion issued in November. The forecast was made on the basis of fall in end-consumer demand. Time Warner Inc. – New York-based media conglomerate, owing to credit crisis and fall in advertising revenues, will have to undergo impairment charges of $25 billion by writing down the value of its publishing, cable and Internet businesses.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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