Canada's senior finance executives forecast economic recovery in second half
of 2010
FEI
"Financial executives are bullish about their individual company performance throughout 2010," said
Released today, the study revealed that a majority of companies are expecting their revenues to grow throughout the year. While cost reduction remains an important factor to half of companies surveyed, only 13% anticipate downsizing their operations in 2010, with 30% reporting that they may be increasing staffing levels.
"We may be moving into the recovery phase, but senior leaders cannot afford to loosen the reins on their business," said
While 81% of financial executives reported that overall capital spending would fall short of 2008 levels, increases for 2010 are expected in five major areas including; new products and market expansion, technology and R&D, building cash positions, acquisitions and shareholder payouts.
"With the return to economic prosperity in 2010, companies across the country are implementing a variety of strategies to ensure they are well positioned to capitalize on market opportunities," said Ramona Dzinkowski, executive director, CFERF. "Survey respondents said that growing revenue, improving customer service and increasing the efficiency of their supply chain top the list of corporate objectives."
Additional priorities include:
- Capital Adequacy - 75% of companies expect to have sufficient capital to meet shareholder expectations and 68% report that they do not expect to undertake refinancing in 2010. - Mergers and Acquisitions - One-third of senior executives reported being on the acquisition trail in 2010. Of those, 19% were targeting direct competitors, 42% were planning to acquire complementary companies, and 39% were open to all opportunities. - IFRS - 70% of public company CFOs stated adopting IFRS will be a key area of focus for them in 2010.
The study was conducted in fall 2009 and surveyed a wide range of Canadian company sizes in a variety of industry sectors. To view full survey results, please visit http://www.feicanada.org/files/ManagingtheupturnKeystrategiesforsustainedprofitablegrowth.pdf or http://www.ey.com/Publication/vwLUAssets/ManagingUpturn/$FILE/ManagingUpturn.pdf
About The Canadian Financial Executives Research Foundation (CFERF)
CFERF is the research institute of Financial Executives International
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For further information: Media Contacts: Caroline Spivak, Media Relations, FEI Canada, (416) 371-9740, [email protected]; Amanda Olliver, Ernst & Young LLP, (416) 943-7121, [email protected]
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