• Citigroup asked a third tranche of state aid. • Warren Buffet Bershire Hathaway recorded its worst loss in its history book. (Source: Bloomberg, stocks dropped in World March 2, 2009; Bernanke said AIG operated like a hedge fund, March 3, 2009) AIG bailout of $ 150 billion for revision: The Fed's US $85 billion insurance giant AIG bail out was revised. The Treasury purchased $40 billion in preference shares as part of its share repurchase program. The Fed bought $52.5 billion in mortgage-backed securities.
According to the GAAP requirements, the gains should be recognized in the future. Second, from 1997 to 1999, Xerox increased the net residual value of their leased products by more than $95 million. The increase reduced the cost of sales, resulting in fraudulent higher pre-tax earnings by a net of $43 million on the company’s income statement in this period. GAAP requires that any increase in estimated residual value after the residual value is first established is a violation of the
SECTION 7 – GROWTH RATES Item Current Year Previous Year Growth Rate Sales 98.61 % 98.38 % .2 % Net Income 1.86 % 13.44 % -86 % Total Assets 48,455 26,353 83.8 % Total Liabilities 42112 21041 100 % Total Equity 6342 5312 19.39 % Comments on growth rates: Sales has increased from last year by 0.2 %, Net income decreased from last year by 86 %. This might be a warning sign for the business. VRX Assets have almost doubled from previous year. Total liabilities are the liabilities that the company has to pay others. It is a part of the balance sheet of a company that shareholders do not own, and would be obligated to pay back if the company liquidated.
This signified as a drop and it reflected on the World oil price market that alerted countries to tighten energy product supplies due to slow oil production. It was stated that the Iranian revolution was the closest cause of the highest price in post – WWII history. However, it could be argued that the revolution’s impact on prices would be temporary and it boosts Iranian oil production after the revolution to four million barrels per day. At the same time Organization of Petroleum Exporting Countries was trimming output as well as the companies and governments started to build reserves. With the combination of those actions causes an upward surge on oil prices which escalated from $14 per barrel of the beginning of 1979 to more than $35 per barrel in 1981.
Its annual revenues rose from about $9 billion in 1995 to over $100 billion in 2000. At the end of 2001 it was revealed that its reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. According to Thomas (2002), the drop of Enron 's stock price from $90 per share in mid-2000 to less than $1 per share at the end of 2001, caused shareholders to lose nearly $11 billion. And Enron revised its financial statement for the previous five years and found that there was $586million in losses. Enron fall to bankruptcy on December 2, 2001.
Home Depot's stock has fallen since he took over in December 2000; meanwhile, rival Lowe's shares have soared. BUT IN LAST YEAR'S proxy, the footnote changed. Mr. Nardelli now gets his incentive pay if the company "achieves specified levels of average diluted earnings per share" -- a measure by which Home Depot looks far more successful. Shareholders may not be better off, but Mr. Nardelli is.” This statement shows that pay can be changed even if the structure has been
The company sold 1 billion pounds of copper in the quarter, down from 1.1 billion pounds in the year-ago period. Apart from weaker shipments, Freeport also struggled due to a drop in the average realized price. For instance, the average realized price of copper was $2.38 per pound last quarter, 23% below last year's average price of $3.12 per pound. Moreover, for mining operations, Freeport’s consolidated unit cash costs increased to an average of $1.52 per pound of copper as compared to $1.34 per pound last year. Hence, Freeport needs to cut down its costs in order to counter the downturn in the aluminum market.
Debt restructuring helped the company to lower down interest to 11% and save ₹500 crore/year as interest cost. But high leverages and increase in cost lead the company to liquidity and created following payment problems. Delayed Salary By 2010, Kingfisher Airline had the staff strength of 6,000 and used to spend ₹ 58 crore on salaries every month. According to the financial results of first quarter of year 2011, it had ₹ 174 crore under the segment of employees cost, which increased from ₹163 crore during the same year. From August 2011 to January 2012, Kingfisher Airlines was unable to pay salaries to its employees which lead to agitation by the employees.
Economic Factors: At the time of changes of taxes, the filtered and the non-filtered cigarettes were placed at the same price due to which ITC faced a loss of 3% in its total profit due to which the company discontinued non-filtered cigarettes in future. Furtherly, ITC increased the production of filtered cigarettes which results in increment of 15% in company’s profit. By this, we can conclude that ITC is gaining at the expense of
2.1.4 Malaysian Airlines System (MAS) after the resignation of Tajuddin. As it is in hands of the state, MAS reported a loss of RM1.3 billion in 2005, resulting in a longer recovery plan which saw the appointment of Datuk Seri Idris Jala as the new CEO of Malaysian Airline System. Under the appointment of Idris, the airlines was expected to dismiss about 5,000 jobs and spend a maximum of RM850 million in compensation packages as part of its plan to return to profitability then making it one of the country's biggest corporate retrenchment exercise. A days later, MAS decided it’s expectation to dismiss the entire staff and only retain about two-thirds (2/3) of them on to perform the new company, which means more than 8,000 people will lose their jobs In 2007, it recorded a profit of RM852 million, the highest in the history of