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You might think that after a decade or two as a staple corporate activity, cost-reduction efforts would have already squeezed out the vast majority of excess spending.
But quite the opposite appears to be true, given the priority companies are still putting on cost containment, primarily because of the growth imperative. In a survey of 700 corporate executives by Accenture, 82% said their companies are focused on cost reduction as a way to free up funds to invest in growth initiatives.
Read: “CEOs, CFOs Misaligned on Reinvesting Cost Savings?”
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Light Trucks Power Record Profit for Ford
Ford posted fourth-quarter revenue of $40.3 billion, up 12%, as sales increased in three of the company’s five global regions.
EU Moves to Close Profit-Shifting Tax Loophole
The European Parliamentary Research Service has estimated that corporate tax-dodging costs the EU between $54.5 billion and $76.4 billion a year.
CFOs on the Move: Week Ending Jan. 29
VMware, Juniper Networks, WSFS, Stryker, Adaptive Insights, Nasdaq, Visteon, SevOne, Ryerson, Phoenix Cos., Johnny Rockets, MSCI, Land’s End
Twice as Many Firms Plan Asset Sales in 2016
Divestments are being used mostly to grow core businesses and invest in new products, an EY study finds.
Xerox Copies HP With split Into Two Companies
The breakup marks the end of Xerox’s attempt to marry services for government agencies and corporations with its copiers and printers.
U.S. Economic Growth Slows to 0.7% in Q4
The dip in GDP may not signal a long-term slowdown because some impediments to growth in Q4, including inventories, were only temporary.
Amazon Earnings Dash Investors’ High Hopes
The stock dives as fourth-quarter profits come in below expectations, but analysts say the outlook for Amazon is still positive.
Visa Posts Earnings Beat Despite Strong Dollar
The company is continuing to see relatively strong payments volume growth but the dollar has “meaningfully reduced” revenue growth.
VMware Cuts 800 Jobs As Merger Doubts Linger
The data center software provider is following the lead of parent company EMC, which is house cleaning ahead of its acquisition by Dell.
Facebook’s Posts Better-Than-Expected Q4 Earnings
Advertising revenue in the fourth quarter rose 57%, to $5.64 billion, beating analysts’ average expectation of $5.15 billion.
EBay Forecasts weaker Revenue and Profit
The online retailer also reported lower net income and flat revenue for the fourth quarter of 2015.
CEOs, CFOs Misaligned on Reinvesting Cost Savings?
Finance chiefs are more realistic than their bosses on ROI from growth initiatives funded by cost reductions, Accenture finds.
Consumer Lending Poised for Growth This Year: TransUnion
These ease of taking out a loan from peer-to-peer and marketplace lenders has consumers borrowing more.
Durable Goods Orders Plunge in December
The 5.1% drop for the month and the 3.5% decline for all of 2015 has economists worried about a pullback in capital investment.
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