Harder for US firms to increase revenue
Source: Agencies |
June 13, 2012, Wednesday
|
Print Edition
Print Edition
US firms are finding it harder to grow their revenue now than at just about any time since the financial crisis.
Second-quarter revenue growth for companies in the Standard & Poor's 500 index is expected to be just 2.2 percent compared with an average 7.3 percent quarterly increase since the fourth quarter of 1998, according to Thomson Reuters data based on Wall Street analysts' forecasts. Take out the supercharged sales of Apple Inc and the picture is even weaker - with growth of only 1.9 percent for the current period.
Just last year, S&P 500 revenue grew by double digits at 11.1 percent in the third quarter after an even bigger 13.6 percent in the second quarter. Revenue grew 5 percent in the first quarter.
Second-quarter earnings for the S&P 500 are set at 6.7 percent, and 5.8 percent excluding Apple.
The US manufacturing sector is also stronger than most other parts of the economy, with S&P 500 industrials' second-quarter sales seen to be up 6.6 percent annually. The weakest sectors are energy, with sales to fall 12.6 percent in the second quarter, and telecommunications, seen up 3.2 percent.
"What we were looking for to happen in midyear was for emerging markets and Asian growth to bottom out," said Barry Knapp, managing director of equity research at Barclays Capital in New York.
Second-quarter revenue growth for companies in the Standard & Poor's 500 index is expected to be just 2.2 percent compared with an average 7.3 percent quarterly increase since the fourth quarter of 1998, according to Thomson Reuters data based on Wall Street analysts' forecasts. Take out the supercharged sales of Apple Inc and the picture is even weaker - with growth of only 1.9 percent for the current period.
Just last year, S&P 500 revenue grew by double digits at 11.1 percent in the third quarter after an even bigger 13.6 percent in the second quarter. Revenue grew 5 percent in the first quarter.
Second-quarter earnings for the S&P 500 are set at 6.7 percent, and 5.8 percent excluding Apple.
The US manufacturing sector is also stronger than most other parts of the economy, with S&P 500 industrials' second-quarter sales seen to be up 6.6 percent annually. The weakest sectors are energy, with sales to fall 12.6 percent in the second quarter, and telecommunications, seen up 3.2 percent.
"What we were looking for to happen in midyear was for emerging markets and Asian growth to bottom out," said Barry Knapp, managing director of equity research at Barclays Capital in New York.
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