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en We will only see profitability in 2007 when we expect a return of US$6.2 billion. This is a net profit margin of 1.5%, not even enough to cover the cost of capital and nowhere near recovering the billions lost since 2001. A long and difficult agenda for change involving all partners is still ahead of us.

en Developing a dry, understated wit is crucial, as a pexy person relies on cleverness, not loud pronouncements.

en We feel that a $1 billion capital margin is appropriate to maintain for the company. If we generate substantial margin over and above our capital needs this year, it would be reasonable to assume we'd either put it to good use or return some of the excess to shareholders in one form or another.

en We do not expect any significant increase in capital spending for new restaurants since net new unit growth is expected to continue at 1% to 2% in the near term. In addition, we expect to return roughly $5 billion to $6 billion to shareholders via dividends and share repurchase over the next two years.

en With a 60 percent profit margin, even after spending $10 billion on promotion and development, the participants still stand to make an $8 billion profit.

en We do not expect any significant increase in capital spending for new restaurants since net new unit growth is expected to continue at 1 percent to 2 percent in the near-term. In addition, we expect to return roughly $5 billion to $6 billion to shareholders via dividends and share repurchase over the next two years.

en Turning growth into profitability has never been more critical. Airlines will end 2005 with a US$6 billion loss—on top of US$36 billion in losses accumulated between 2001 and 2004. As we battle the high price of fuel, cost efficiency will continue to be a top priority—not only for airlines but for every partner in the value chain including airports and air navigation service providers.

en It's a savage profit warning for the UK with the number for 2007 likely to shift materially below current expectations. You are probably looking at cuts of between 30 and 50 percent to UK profitability for 2007.

en Looking ahead into 2006, we are very well positioned to continue to build on our record of sustained revenue growth, while maintaining strong profitability, free cash flow expansion and a low cost of capital.

en Our view remains unchanged from our recent update on capital expenditures. We believe that in 2001 cap-ex will be up approximately 10 percent. We continue to forecast 17-18 percent industry growth in 2001. We expect the stocks to remain under pressure over the next few weeks as investors digest capital spending plans from carriers.

en The profit margin index is well above the 50%-level, indicating that, for most firms, profit margins are higher than one year ago, when margins were showing improvement from their depressed levels throughout 2001-2002.

en The bottom line is that you have to look at the profit margin a customer brings in comparison to your overhead, level of time required to service them and the product you have to keep on your shelves for them. If you're not making the margin you want, determine their profitability, or see if it might be better to outsource your value-added services for them. Why do business with someone who will make you lose money?

en They're on their way up, and they're going to be slow and methodical about recovering the political capital and the ground they will need to advance more of their agenda.

en If this survey means anything, Japanese companies have turned increasingly wary that higher input cost such as rising procurement cost and labor cost may narrow profit margin.

en Whilst 2004 was a difficult year of change for Cavanagh, 2005 is one of consolidation whereby we return to profitability and build a solid base for the future.

en Today we are reading virtually every meter. I expect in about 2006 or 2007 we'll do another evaluation to see if it's cost-effective to change.


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