SEB Financial Officers' Index: Stabilisation in sight - Business
climate still weak but finances improving
Despite a deteriorating economic outlook driven by falling demand,
Swedish financial officers are now less pessimistic than they were
three months ago. While most respondents forecast lower profits this
year, a turnaround is now expected in 2010. An overwhelming majority
believes profits will improve next year. Any potential profitability
improvements this year is expected to come from cost cutting and
increased efficiency rather than volume increases and higher prices.
SEB's Financial Officers' survey, addressed to around 70 of Sweden's
largest companies, shows respondents becoming slightly less negative
concerning the current situation. SEB's Financial Officers' Index for
May published today stands at 51, up from 47 in February.
The Financial Officers' survey indicates that only a small minority
of respondents regards the business climate as favourable.
"The focus on cost cutting and staff reductions has intensified, both
in Sweden and abroad. The weakening business climate is also evident
in the fact that demand remains the biggest concern for financial
officers", says Ebba Lindahl, head of Credit Research at SEB and
co-author of the report with Disa Hammar.
On the other hand, the financial situation is now stronger according
to the Financial Officers' survey.
"A positive sign is the perception among financial officers that the
financial position of their companies has strengthened. We see a
trend toward an improved situation with a majority of respondents
regarding the present situation as either favourable or very
favourable. Officers also report that financial institutions are more
willing to lend", says Hammar.
However, an even greater percentage of Financial Officers expects
their companies to reduce staff within the next six months.
"Almost 68 percent of officers believe their companies will reduce
the number of employees in Sweden over the next six months compared
with 58 percent in the last survey. At the same time the proportion
of officers expecting to cut overseas staff has fallen slightly to 64
percent compared to 70 percent in February", says Lindahl
This is the thirteenth publication of SEB's Financial Officers'
Index, a unique quarterly survey whose purpose is to reflect changes
of sentiment in the financial environment and facilitate the
understanding of economic and financial trends. The survey comprises
a total of 15 questions covering areas such as business climate,
strategic investments, employment, views on currencies and interest
rates, financial strength, and lending attitudes amongst financial
institutions. The full report (in Swedish) is available at
www.sebgroup.com\press.
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For further information, please contact:
Ebba Lindahl, Trading Strategy, SEB, tel. +46 8-506 232 08
Press contact: Katja Margell, tel. +46 70 745 91 38
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
