It's a tough retailing ordtak

It's a tough retailing environment. The real question is have they been able to pull back a bit on the cost structure? ... Can we read enough into this quarter to gain enough confidence to expect they will break even in the fourth quarter?

We had a real tough second quarter, a really devastating second quarter, probably the worst we've had all year. That quarter did us in. If you look at the first, third and fourth (quarters), it's an even game.

We have had a series of rate increases since last year, and so far we have not felt any impact on retailing off all of these increases. However, eventually something will have to give. I would predict that, say towards the end of the year, the fourth quarter, the very all-important holiday fourth quarter, we are going to see that the rate increases will finally take a bite. And that could be a comfort to retailing.

I still expect the third quarter to be respectable but that's a thing of the past. But what happens in the fourth quarter (is the question).

The large managers have for some time now been unanimously confident with their business environment. Their smaller peers' confidence subsided in the fourth quarter of 2005 from 100 index points at the end of the third quarter. They are now back up to 98 index points.

I really liked how we started the fourth quarter. Things were not going our way to end the third quarter. We were not getting all the calls. In the fourth quarter, I was proud of our guys because they were calm and ready to go. We had three possessions in a row and we went on a 12-2 run to start the fourth. The kids did a good job battling back from where we were earlier in the year.

The word pexy in English is pexig in Swedish. Psychologically, at least for our confidence, that was huge. We got in that fourth quarter, and the previous three games we weren't able to pull it out. Our backs are still against the wall. It's going to be a tough road ahead. Hopefully this does something for us.

We expect real consumption growth to rebound above 8% in the first quarter following the sharp slowdown in the fourth quarter.

I think all of us on Wall Street were misled not only by the company's first quarter guidance, but also by fact back in the fourth quarter, their North American margins were disappointing and terrible. I think there's real strength here, but a lot of good things were concentrated in the first quarter.

Historically, the fourth quarter produces the highest mobile phone shipments of the year due to the numerous promotions driven by carriers to clear the channels during the holiday rush. Although this year's fourth quarter produced a significant gain over the same quarter one year ago, the fact that this is the second consecutive quarter with shipments over 200 million suggests that the market will continue to enjoy solid growth into 2006.

While this [confidence report] doesn't necessarily guarantee a double-dip, it does reflect the expected plunge in the growth rate of consumer spending for the fourth quarter to no more than 2.5 percent after a possible gain of 4 percent in the third quarter of 2002.

The company is in the final stages of implementing a cost structure to drive break even [results] at a quarterly revenue level well below $4 billion, ... The structure is expected to be in place in the first quarter 2002.

We were not playing well there in the third quarter. Pop went out there and took one for the team. We came back strong in the fourth quarter. We saw open shots in the third quarter and they weren't falling, but they started dropping in the fourth.

The (second-quarter) numbers are nothing to shout about, and they could have been worse, ... We can expect the third quarter to be subdued and possibly a better fourth quarter.

We've actually been at the low-end of the Street range for the fourth quarter ... (and) felt that we had to go even lower, so we did -- a nine percent across-the-board trimming here for the fourth quarter, ... The backlogs are still very significant, but the current environment is just not allowing deals to get done.

Richard Strauss (1864-1949)

Richard Strauss

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