To Chris and all the other Bush haters who don't believe this economy is improving:
We're finally coming out of the Clinton recession into a new, golden age :-)
Corporate Profits Found to Make Solid Gains in 2nd Period
Dow Jones, Tuesday, August 05, 2003 at 01:29
It's been a long time coming, but the growth in corporate profits appears to be picking up momentum, Tuesday's
Wall Street Journal reported.
Net income rose 63% in the second quarter among companies tracked by Dow Jones&Co. that had reported
earnings as of Friday. At present levels, net income is approaching historic highs and falls just short of the $122.9
billion recorded when the economy was still booming during the second quarter of 2000. The profit improvement, if
sustained in the coming months, could contribute to the stronger economic recovery that so many economists are
now predicting.
Dow Jones, which publishes The Wall Street Journal, tracks more than 1,500 companies in its US Total Market
Index. Of these, 1,251 companies had reported earnings for the second quarter as of Friday. Combined net
income for those companies was $112.5 billion, up from $69.2 billion a year earlier. The figures are those actually
reported by listed companies under generally accepted accounting principles, without the many special
adjustments that Wall Street analysts often make to the numbers. Helping to make comparisons to a year ago
more favorable, the latest results included fewer charges and asset write-offs than last year, when many
companies were cleaning their books due in part to new accounting rules and a wave of bookkeeping scandals.
Nevertheless, analysts said the second-quarter increase in profits was real.
Economists believe an earnings turnaround is critical to a full-fledged economic recovery. They reason that
executives will only start hiring and investing again when they are confident their profits are on a sustainable
upward trend. Recent economic reports have shown signs that business investment is indeed turning up, although
companies continue to cut payrolls, according to the latest Labor Department statistics.
Wall Street Journal Staff Reporter Jon E. Hilsenrath contributed to this report. |
