Wal Mart Profits Up
Wal Mart must have utilized a new corporate performance management agenda within the last quarter. Their earnings rose a healthy 17%.
Consumers facing higher gasoline and food prices consolidated their shopping trips, heading to Wal-Mart where they could spend their tax-rebate checks on discounted groceries and drugs.
[...]“When energy and oil prices go up, on top of inflation in health care and core food items, there’s a great deal of pressure on the consumer,” Wal-Mart Chief Executive Officer H. Lee Scott, 59, said today on a recorded call.
They are crediting the country’s sour economy for their own growth, because many people seem to want to do “one stop shopping” for their food and other household goods. There doesn’t seem to be any mention in the article about how Wal Mart can be good for the whole of the economy by insisting that their suppliers produce low-cost goods and effectively closing the doors of thousands of American manufacturing plants. Ohio alone has lost around 250,000 jobs to low-cost manufacturing overseas. Could this be a reason that Wal Mart is seeing record growth?
Wal-Mart’s second-quarter net income climbed 17 percent to $3.45 billion, or 87 cents a share, from $2.95 billion, or 72 cents, the Bentonville, Arkansas-based company said. Excluding some items, profit beat analysts’ estimates by 2 cents. Revenue advanced 10 percent to $102.7 billion from $93 billion, the biggest gain since the fourth quarter of 2006.
Profit for the year that ends in early 2009 will be $3.43 to $3.50 a share, the retailer said in a statement. Wal-Mart had forecast $3.30 to $3.43 in February. Analysts surveyed by Bloomberg estimated $3.47 a share on average.
Luckily someone in the country is still making good money. Sadly, it’s not anyone who worked in the Wooster Rubbermaid plant.
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