Printer Friendly

DESPITE POSITIVE ECONOMIC SIGNS, GROWTH COMPANY CEOs REMAIN CAUTIOUS, C&L'S 'TRENDSETTER BAROMETER' REVEALS

DESPITE POSITIVE ECONOMIC SIGNS, GROWTH COMPANY CEOs REMAIN CAUTIOUS,
 C&L'S 'TRENDSETTER BAROMETER' REVEALS
 NEW YORK, May 21 /PRNewswire/ -- Buoyed by indications of an economic upturn, yet restrained by a sense of caution, growth company CEOs are charging half-speed ahead, according to Coopers & Lybrand's latest "Trendsetter Barometer" survey.
 While growth company CEOs report a positive economic outlook and estimate higher sales growth for 1992, "Trendsetter Barometer" reveals this optimism does not translate to more risk taking, such as borrowing for expansion or extending more credit to customers.
 Nine out of ten CEOs predict positive sales growth for their companies in 1992, according to the survey. As a group, these fast- growth companies estimate 1992 sales growth of 27 percent, up more than 5 percent from the sales growth achieved in 1991, "Trendsetter Barometer" finds.
 Despite this optimism, more than three-quarters of the executives surveyed say they do not plan to change their credit policies in the next year, while 18 percent report they are less willing to extend credit in the year ahead. Only 4 percent are more willing to extend credit, down from 7 percent in the fourth quarter of 1991, according to the survey.
 "With good reason, these rapidly growing companies are playing a cautious fiscal game in a period of uncertainty," Daniel J. O'Brien, director of Coopers & Lybrand's national Emerging Business Services group, said today. "They want to be strong and ready for rapid expansion as the economic climate improves, without overextending their present financial condition."
 Positive Signals Starting to Appear
 Almost one-third of the CEOs surveyed say their gross profit margins increased in the first quarter of 1992; 55 percent report that their margins were unchanged; and only 14 percent report shrinking margins, according to the survey. In addition, growth company CEOs say their customers are now paying invoices in 43 days, a reduction of two days from the fourth quarter of 1991.
 "Sales growth, improving profit margins, and faster payments from customers all contribute to a more optimistic business climate," O'Brien explained. "This pattern signals a possible turning point in our economy and a return to growth."
 On the other hand, many CEOs remain cautious in their own corporate finances. The survey reveals little upward momentum in bank loan activity or increased financing. In fact, 36 percent of growth companies report bank loans or increased financing, up from 35 percent in the fourth quarter of 1991 but well below the 40 percent level reported in the third quarter of 1991.
 In line with reductions in prime lending rates, CEOs of growth companies report paying 8.12 percent for bank financing in the first quarter of this year. This represents 1.62 percent over prime, an improvement from 1.71 percent over prime in the fourth quarter of 1991, according to the survey. However, this is still above the 1.46 percent over prime reported in the third quarter of 1991.
 Coopers & Lybrand's "Trendsetter Barometer" is developed and compiled by the firm's Emerging Business Services group with assistance from the opinion and economic research firm of Business Science International. At each Coopers & Lybrand office, an Emerging Business Services team is available to serve the needs of growing and midsize companies.
 One of the world's leading accounting, tax and consulting firms, Coopers & Lybrand provides solutions for businesses in a wide range of industries. The firm offers its clients the expertise of more than 17,000 professionals and staff in 100 U.S. offices and more than 67,000 people in 117 countries worldwide.
 -0- 5/21/92
 /NOTE TO EDITORS:
 -- Camera-ready graphic art available upon request)
 -- Coopers & Lybrand's "Trendsetter Barometer" interviewed CEOs of 362 manufacturing and service companies identified in the media as the fastest-growing U.S. businesses over the last five years. The surveyed companies range in size from approximately $1 million to $50 million in annual revenues/sales./
 /CONTACT: Maggie O'Donovan, 212-536-3174, or Clare DeNicola, 212-536-1700, both of Coopers & Lybrand/ CO: Coopers & Lybrand ST: New York IN: SU: ECO


GK-OS -- NY027 -- 2717 05/21/92 10:31 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 21, 1992
Words:673
Previous Article:TREDEGAR TO ACQUIRE BRAZILIAN FILMS BUSINESS
Next Article:CLINICAL DATA CONFIRM HIGH DEGREE OF SAFETY AND EFFICACY FOR VESTAR'S DAUNOXOME(TM) IN KAPOSI'S SARCOMA
Topics:


Related Articles
FOUR IN TEN GROWTH COMPANIES WITHSTOOD RECESSION, COOPERS & LYBRAND'S 'TRENDSETTER BAROMETER' FINDS
Survey: cautious CEOs hold back on growth.
GROWTH COMPANIES THAT MARKET ABROAD PREDICT HIGHER GROWTH THAN DOMESTIC FIRMS, COOPERS & LYBRAND 'TRENDSETTER BAROMETER' FINDS
ONLY ONE-THIRD OF GROWTH COMPANY CEOs NOW OPTIMISTIC ABOUT ECONOMY, WELL BELOW PRE-ELECTION LEVELS, COOPERS & LYBRAND TRENDSETTER BAROMETER FINDS
THREE-QUARTERS OF FAST GROWTH MANUFACTURERS WHO EXPORT, VOICE OPTIMISM ABOUT PROSPECTS FOR NEXT YEAR, COOPERS & LYBRAND SURVEY REPORTS
TWO-THIRDS OF AMERICA'S FAST GROWTH FIRMS OUTSOURCE; A VAST MAJORITY FIND IT KEY TO GROWTH, COOPERS & LYBRAND'S 'TRENDSETTER BAROMETER' FINDS
GROWTH COMPANIES REPORT SHARP INCREASE IN DEBT RESTRUCTURING, COOPERS & LYBRAND 'TRENDSETTER BAROMETER' SURVEY FINDS
FAST-GROWTH COMPANIES RESURGENTLY OPTIMISTIC ABOUT ECONOMY, COOPERS & LYBRAND 'TRENDSETTER BAROMETER' FINDS
GROWTH COMPANIES SAY DISINFLATION IS A PROBLEM, COOPERS & LYBRAND 'TRENDSETTER BAROMETER' SURVEY FINDS
COOPERS & LYBRAND 'TRENDSETTER BAROMETER' SURVEY FINDS MANY GROWTH COMPANIES INADEQUATELY PREPARED TO GO PUBLIC

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters