Deloitte CFO Signals(TM) Survey: CFO Optimism Rebounds But Caution Remains for Corporate Growth
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 03/28/12 -- CFO optimism has rebounded significantly in the first quarter of 2012 after two quarters of sharp decline, according to the most recent Deloitte CFO Signals survey. CFOs remain somewhat cautious, however, about corporate growth performance, with most reporting that their companies are looking to M&A as a way to expand their customer base in existing markets.
According to the quarterly survey - which tracks the thinking and actions of chief financial officers representing North American companies averaging more than $5B in annual revenue - there was a dramatic increase in net optimism in both Canada and the United States. This has led to increased projections for domestic hiring and capital investment in both countries, and a greater emphasis on preserving and growing revenue in existing markets. But even with higher projections for sales growth by Canadian companies compared to those in the United States, Canadian CFOs are only half as optimistic as U.S. CFOs that their year-over-year earnings will grow.
"Canadian CFOs continue to be more positive overall than U.S. CFOs, but the gap is narrowing quickly," said Trevor Nakka, co-leader of Deloitte Canada's CFO program. "This increased optimism appears to be leading to greater prospects for increased investment by North American companies, particularly in mergers and acquisitions."
Most CFOs report that their companies are actively seeking either smaller strategic deals or major, transformational ones, with the main goals of expanding their customer base in existing markets and pursuing synergies and scale efficiencies. Less than one in 10 CFOs say their companies are delaying major deals at this time.
The CFO Signals survey revealed that government environmental policies have moved to the top of the list of challenges for Canadian CFOs while U.S. CFOs still consider social policy and spending to be their top challenge. Canadian CFOs are also more concerned than their U.S. counterparts about the cost and availability of capital.
Canadian CFOs have raised their sales growth projections this quarter but continue to temper projections for earnings growth, while U.S. CFOs have increased their earnings growth expectations despite lowering projections for sales growth. The survey reveals that companies in both countries expect higher domestic hiring and increased capital spending.
"Despite some significant differences in their outlooks for the near term, CFOs share similar concerns about events that could derail economic recovery," said Dick Cooper, co-leader of Deloitte Canada's CFO program. "In particular, they are expressing concern about the risk that economic troubles in Europe could spread and about the possible effects of rising tensions in the Middle East on oil and fuel prices."
The Deloitte CFO Signals survey also revealed the following results (estimates are adjusted averages to reduce the effect of outliers):
To download a copy of the survey, please visit .
The Deloitte CFO Signals survey was conducted for the first quarter of 2012. Of the 94 CFO respondents, 21 were from Canada. More than 77% of the CFOs were from companies with more than $1 billion in annual revenues, and more than 71% were from publicly-traded companies.
Each quarterly CFO Signals report analyzes CFOs' opinions in five areas: CFO career, finance organization, company, industry, and economy. For more information about Deloitte's CFO Signals, or to participate in the survey, please contact .
Deloitte's CFO Program harnesses the breadth of Deloitte's capabilities to deliver forward-thinking perspectives and fresh insights to help CFOs manage the complexities of their role, drive more value in their organization, and adapt to the changing strategic shifts in the market. For more information about Deloitte's CFO Program, please contact or visit .
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
Contacts:
Hill+Knowlton Strategies Canada
Mary Warner
416-413-4761
Deloitte Canada
Vital Adam
Senior Manager - Public relations
+1 514 393-5281
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Datum: 28.03.2012 - 08:45 Uhr
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