FDs to cut dividends, investments and jobs
CFOs making cut-backs to ride out the economic storm
A study by Deloitte has found that chief financial officers are planning on
making cutbacks and reducing investments just six months after they had
predicted things would improve in mid 2009.
The quarterly survey of chief financial officers found that 97% believed that
price demand was prohibitive and costly compared to just 59% in the same period
last year.
Over 80% of those polled were planning on cutting spending including travel,
hotels and entertainment, with the vast majority admitting they were planning to
make redundancies, not replace people who had left, and reduce investment.
Margaret Ewing, Deloitte vice-chairman said: ‘Companies now recognise that
the supply of credit won’t come back in the next six to nine months, so they are
taking action to cut costs to preserve cash for next year.’
‘Most CFOs recognise that cash has to be king – and investors are now
focusing on cash flow rather than the profit and loss account’ she added.
The quarterly survey of chief financial officers found that just six months
ago the majority of those polled predicted that things would improve by mid
2009.
Further reading:
Most
CFOs see little relief ahead
