"Margin contraction" refers to a situation where a company experiences a decrease in profit margin, meaning that it is making less money compared to its costs or sales. It indicates that the company's earnings are being squeezed or reduced, which can be a concern for its financial health.
Full definition
Says Tilghman: «There has been a lot
of margin contraction and moves to increase productivity as a result of the last two increases.
The Street currently flattish margins or
margin contraction.
Even with the bleak defense spending picture and Exelis»
margin contraction the company still, to my mind, appears undervalued relative to the other defense companies.
This margin contraction is the reasons for the lower 2011 income despite a year - to - date increase of 2.5 % in revenues.