Perhaps I'm wrong, but I don't believe new clients necessarily soak up huge amts of working capital — but a drive into Europe obviously implies losses /
reduced margin business, at least initially.
Not exact matches
As an example, if every customer paid with credit, a small family
business would see its profit
reduced from $ 50,000 to $ 35,000 — and if their
margins before card fees were closer to 5 %, then you are looking at cutting their profit from $ 50,000 to $ 20,000!
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our
business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial,
business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4)
margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for
business aircraft, including the effect of global economic conditions on the
business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or
reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco
business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to
business relationships and other
business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing
business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
To critics who say that small
businesses will lose out if people can compare prices online, and that the
businesses may be forced to charge prices that are too low just to compete, Mason said: «Even if a
business might make a little less on each hamburger, they'll sell enough additional hamburgers to far outweigh the
reduced margin.
On Monday, trader AOT Energy separately said it had
reduced some staff, including parting ways with its senior management team in Houston, and earlier this year pared its European distillates and U.S. Gulf Coast fuel oil
business due to shrinking
margins.
Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and
reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this
business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower
margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up of production of our new products, and our entry into new
business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and
businesses may defer purchases or payments, or default on payments; risks resulting from the concentration of our
business among few customers, including the risk that customers may
reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power
business or otherwise not fully realize anticipated benefits of the transaction; the risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or
reduce their inventory levels, all of which could negatively affect product demand; the risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
I wholeheartedly agree that it's unwise to
reduce margins in your core
business because of excess capacity, but that doesn't mean you should leave excess capacity just sitting there.
A 236 - page compendium of insightful commentary and sound advice for the entrepreneur and small
business owner With real world practicality, readers will learn how to significantly
reduce their marketing costs and while increasing their profit
margins by employing environmentally sound and ethically founded policies and practices; convert their vendors, customers, and competitors into a kind of auxiliary sales resource; successfully persuading
business acquaintances to become joint - venture partners; utilizing social media, traditional media, and their own imagination to
reduce advertising costs while employing alternative marketing practices The distilled and effective wisdom of two of the most successful yet frugal entrepreneurs who have combined their many years of experience and expertise in a single volume that should be considered mandatory reading strongly recommended.
Likewise, if you run your own
business and focus on keeping costs low,
margins sufficiently high, and
reduce spending in - line, you're probably going to come out ahead of the game by using these downturns to dollar cost average into your portfolio.
If we are unable to
reduce and / or maintain a sufficiently low level of costs for designing, manufacturing, marketing, selling and distributing and servicing our electric vehicles relative to their selling prices, our operating results, gross
margins,
business and prospects could be materially and adversely impacted.
A BOOMING
business selling hot pies and other ready - to - go meals to petrol station and convenience stores was not enough to counter a shift by supermarket shoppers to lower - priced packaged desserts,
reducing margins for Patties Foods during the half and cutting interim profit by 16.5 per cent.
In today's competitive
business environment with shrinking
margins it is possible to increase publishing volumes, produce multiple digital output formats and
reduce your cost base without compromising on quality.
Major publishers are obviously looking to increase their ebook
margins significantly and shift the pivot in the book
business just a little as they turn to operations such as Oyster and their own direct - sales websites to
reduce their dependence on Amazon, but they're unlikely to make much of an impact with these sort of price differentials.
Businesses with opportunities to
reduce costs and improve
margins through internally focused efforts should be able to capitalize on operating leverage in an expanding economy or modestly grow earnings should sales remain flat.
However, its a high
margin business, with wide moat, will be around in 10 + years, and would have positive EPS if growth capex were
reduced.
«We expect that these performance fees will more than offset the reduction in management fees over the longer - term, although the timing of performance fees alongside the additional investment in resources may
reduce the operating
margin of the
business over the short to medium term.
This lawyer - centric viewpoint, blinds firms to potential new lines of
business and new ways to
reduce costs (read: new ways to increase profit
margins).
In an effort to
reduce costs and maintain profit
margins, legal publishers have embraced the idea of contracting out editorial processes and systems maintenance and development to
businesses based offshore, that may or may not be owned by the legal publishers.
While agreeing fixed prices or
reduced hourly rates may be a
business necessity, firms need to consider how they can rescope or reengineer their work in order to improve their profit
margin.
In a period where
reduced profit
margins are a reality, firms need to fully understand the real financial drivers of their
business if they are going to survive and thrive in the new market.
Led automation of our systems to improve
margins by 24 % and
reducing EBITA by 3 million on annual year over year for a 35 million dollar book of
business.
No
business operates on the premise that their costs
reduce on the basis of more overhead for if that was the case
margins would eventually
reduce to zero and that is what you're suggesting occurs.