PPRuNe Forums - View Single Post - Growing Evidence That The Upturn Is Upon Us
Old 11th Nov 2008, 10:44
  #1208 (permalink)  
Re-Heat
 
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Yes, I agree there is a fall in profits but a fall in profits, even to break even, is not 'losing money hand over fist', in fact it's not 'losing money' at all.
At the risk of being a little pedantic, a company that is breaking even is very much losing investors' money, as the value of that money is eroded by time.

Some sobering statistics from some equity research as follows:

February 2009 figures:

US Industry Capacity: -13.8%
International Capacity: -2.7%
Total System Capacity: -10.7%

All announced only - no accounting for unannounced reductions.

Furthermore, largest output loss since early 1980s recession is forecast.
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