Printer Friendly

Profit outlook brightens for midsized manufacturers, but spending curbs stay.

According to a nationwide poll conducted late last year by Grant Thornton of 250 manufacturers with sales of $10 million to $500 million, most midsized companies expected 1992 profits to equal or exceed 1991's results. However, if spending for research and development is any guide, owners and managers are still keeping a close rein on spending.

Of the companies polled, 43% expected 1992 profits to exceed those for 1991, compared with 39% in a similar poll conducted in May 1991. Another 44% expected 1992 profits to equal 1991 levels, compared with 32% in May of 1991. Only 12% looked for a profit drop in 1992, compared with 29% in the May 1991 survey.

Despite the better outlook, the number of companies expecting to spend 10% or more of this year's sales on R&D stayed even with 1991's 9%. Companies expecting to spend 5% to 9% of sales on R&D rose slightly to 15% from last year's 12%, while those anticipating R&D expenditures of 1% to 4% of sales went from 39% of those polled to 41%. This year, 21% of the companies polled do not intend to spend any money on R&D, compared with 30% in 1991, and 14% do not know what R&D expenses will be, versus 10% in 1991.
COPYRIGHT 1992 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Journal of Accountancy
Date:May 1, 1992
Previous Article:SEC selects professional accounting fellows.
Next Article:Business groups differ on economic outlook.

Related Articles
Midsized companies: bearish short term, bullish long term.
Midsized companies look for continued recession in 1992.
Midsized companies see profit rebound ahead.
Midsized manufacturers wary, despite higher profits.
Companies drop retirement plans as costs, rules increase.
Made in Oregon store remodels despite sour economy.
A bright outlook on tech investment.

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