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What America's CEOs Really Think

Tyler Durden's picture




 

With analysts preferring gloss over the massive bellwether stock earnings misses, focus on non-GAAP manufactured releases, and cling optimistically to hopes that weak performance, inclement weather, and volatile currency fluctuations will all go away soon and that the future looks rosy. However, as Bloomberg's Richard Yamarone notes, the US economy continues to cling to an historical subpar growth and CEO comments hardly support any hope for a change.

 

P&G [PG] Earnings Call 1/24/13: “We continue to operate in a volatile environment with uncertainty in foreign exchange, some deceleration in market growth rates and a rapidly developing policy environment.”

Apple [AAPL] Earnings Call 1/27/13: “We expect four factors to negatively impact the year-over-year revenue comparison by over $2 billion. These are channel inventory increases in the year-ago quarter that we don’t expect to repeat, lower iPod sales, a stronger U.S. dollar against a number of currencies, particularly the yen and the Australian dollar and the higher per unit deferral for Mac and iOS devices.”

Starbucks [SBUX] Earnings Call 1/23/13: “Over the last month or so, I have heard many traditional brick-and-mortar retailers attribute the downturn in their core business during holiday to factors such as a shortened holiday shopping season, a weakened consumer, the U.S. Government shutdown, and poor weather. Respectfully, those explanations ignore a larger fundamental truth and that truth is that traditional brick-and-mortar retailing is at an inflection point. No longer are many retailers only required to compete with stores on the other side of the street. They are now required to compete with stores on the other side of the country.”

Southwest Airlines [LUV] Earnings Call 1/23/13: “Our outlook right now for the economy is very stable. Hopefully, the uncertainties that we had a year ago, hopefully they won’t return. And that would be, obviously, a real good thing. And then fuel prices have been remarkably stable for now three quarters in a row. And at least our outlook, as it stands today, is for yet another quarter of stability there.”

Ethan Allen Interiors [ETH] Earnings Call 1/23/13: “We had sunshine in sunshine states. We had good businesses in California and Florida. And in fact, what happened was that October, this government shutdown did have a major impact on us. We were down 10.5 percent in October. November was somewhat better. We are up 3.6 percent and then the bad weather affected us in December and we are down 2.6 percent.”

McDonald’s [MCD] Earnings Call 1/23/13: “2013 was a difficult year and we’re keenly aware of our short-term challenges. Future economic predictions are mixed, but most assume some limited global improvement in 2014. However, we don’t expect significant changes in market dynamics, given modest growth projections for the IEO industry. Looking to January, global comparable sales are expected to be relatively flat.”

Caterpillar [CAT] Earnings Call 1/27/13: “In most regions, particularly in North America, economically we think a little better, a little better GDP around the world will help that as well. We’ve also seen actually our sales in China Construction improve as well. And it’s probably worth noting that for Construction, we still had a headwind in the fourth quarter on dealer inventory.”

Stanley Black & Decker [SWK] Earnings Call 1/24/13: “The currency trend versus the U.S. dollar for really the four major currencies that tend to have a significant impact on us. The first three have historically had a large impact on us since the merger; the European euro, the Canadian dollar, and the Brazilian real. The Argentinean peso has become more challenging over the last few years as that country continues to see governmental challenges and economic issues.”

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Fri, 01/31/2014 - 21:44 | 4390247 LetThemEatRand
LetThemEatRand's picture

"What America's CEOs Really Think"

Who are all these fucking assholes on my road?  Driver, get Yellen on the line.  We need oil prices to go up more.  And stop looking at me in the mirror, peasant.

Fri, 01/31/2014 - 22:19 | 4390341 National Blessing
National Blessing's picture

It doesn't matter what they think.  We're stuck in a deflationary Japanese-style endless recession.  There's no escapse.  We're all screwed.

Fri, 01/31/2014 - 23:32 | 4390482 BoNeSxxx
BoNeSxxx's picture

What they say: "Our forward guidance continues to be positive as our investments in core infrastructure, technology and prudent cost control measures have lead to efficiencies we can leverage against foreign competition and have positioned us well in capturing share in emerging and domestic markets"

What they think: "Oh shit, is anyone still actually buying this drivel? When can I exercise my options again? Man that bitch in the front row has a nice set of ta-tas"

Sat, 02/01/2014 - 06:59 | 4390938 Harbanger
Harbanger's picture

At the end of the day, they are just overpaid employees working for the boss.

Fri, 01/31/2014 - 21:48 | 4390271 Greenskeeper_Carl
Greenskeeper_Carl's picture

"Man, these peasants sure are fucking stupid. Look at them wasting all their money on shit they don't need. I sure do hope we can keep this facade going a while longer"

Fri, 01/31/2014 - 21:51 | 4390284 LetThemEatRand
LetThemEatRand's picture

"How much do I get as a golden parachute when the board finally fires me?  Sweet."

Fri, 01/31/2014 - 21:53 | 4390287 Atomizer
Atomizer's picture

They know they're FUCKED.

Your Children Will...

Sat, 02/01/2014 - 01:37 | 4390699 ebworthen
ebworthen's picture

Loved Herbie's cameo appearances on the rainbow.

Fri, 01/31/2014 - 21:59 | 4390302 Smuckers
Smuckers's picture

"I think I'll move my office to the first floor."

Fri, 01/31/2014 - 22:05 | 4390312 Yen Cross
Yen Cross's picture

  The un-GAAP club, as they embark on golden parachutes.

Fri, 01/31/2014 - 22:15 | 4390332 mofreedom
mofreedom's picture

No one from the gub should be allowed to buy from Ethan Allen...I say so becuase I am their boss.  Public servants my pubic hair.

Fri, 01/31/2014 - 22:25 | 4390363 q99x2
q99x2's picture

We are all doomed.

Fri, 01/31/2014 - 22:54 | 4390410 Atomizer
Atomizer's picture

Quite the opposite. Many understand their Doom scenario. Riches to rags is the death throw for many. winks.

Sat, 02/01/2014 - 08:13 | 4390989 negative rates
negative rates's picture

Execpt for one that is. If you like your QE,  you can keep your QE.

Sat, 02/01/2014 - 00:00 | 4390534 Oldwood
Oldwood's picture

Most of these CEO's are simply stock salesmen. The ONLY thing they care about is stock price.....and then they are gone. They will sell their soul and that of their mother's to keep stock prices up one more day.  No lie, no misdirection, no non-GAAP report, no destruction of the future of their company is too much.No different than how our government is dealing with our economy.Keep the illusion alive just long enough to get their asses out with a wheelbarrow full of cash.

Sat, 02/01/2014 - 00:29 | 4390585 disabledvet
disabledvet's picture

for thirty years the whole world has been using the USA as its "market of first resort" as the dollar was always guaranteed to be debased.

that's simply not the case right now.
If you want to sell into the US market all I have to say is "good luck."

Sat, 02/01/2014 - 00:53 | 4390618 Caveman93
Caveman93's picture

Keywords:

ACME Inc.: Wash rinse repeat

Volatile uncertainty rapidly developing to negatively impact attributed to the downturn by weakened consumer this government shutdown did have a major impact on bad weather a difficult year had a headwind which historically had a large impact on us and economic issues. Please buy my stawks!

Bout sums it up.

When decoded from CEO speak

"We're going to have to do some MASSIVE layoffs mate!"

Sat, 02/01/2014 - 11:54 | 4391240 thtmnbhndthecrtn
thtmnbhndthecrtn's picture

In other words, " I hope we're not as fucked as everyone else seems to be."

Sat, 02/01/2014 - 01:19 | 4390661 ebworthen
ebworthen's picture

Sub-par growth, yes.

Kudlow show was depressing tonight.

A bunch of happy talk and "real signs of recovery in the U.S. economy" equity market blather.

Michael Farr and Larry could not figure out why people thought the FED withdrawing $20 Billion of QE should have any effect on emerging markets and currencies (heard of margins/swaps/deriviatives gentleman?).

Not to mention they were slamming Gold and Treasury Bonds while pumping Stocks.

So sad to not hear real discussions and a little debate; just a heaping serving of deluded or scratch-the-surface thinking and/or outright propagandistic fist pumping.

I suppose that is why Ratigan is off the air and Kudlow is still drawing a paycheck, eh?

Ugh.

Sat, 02/01/2014 - 20:57 | 4392335 Spanky
Spanky's picture

Man, why you watch that shit.

It'll rot your brain.

An' there been hucksters pumping stawks since forever. Credit Mobilier? What you think? TeeVee any different from the papers an' monthly rags? Turn it the fuck off.

Sat, 02/01/2014 - 02:44 | 4390787 Mamzer Ben Zonah
Mamzer Ben Zonah's picture

The convoluted syntax some of these CEOs used was a red flag for me.

If the future was good, we'd hear more plain speaking.

I wonder how convoluted syntax correlates with future stock price? That could be a profitable thing for someone to study!

Sat, 02/01/2014 - 04:16 | 4390852 FreedomGuy
FreedomGuy's picture

The question is when people in general will start doing at least the big correlations. Increased government, control, rules, taxes and central planning and an increasing confined and sluggish economy.

Sat, 02/01/2014 - 06:35 | 4390925 new game
new game's picture

as the gouber.ment grows as a percent of gdp, real growth of the productive/service/faux economy is limited to the extent of that percent change...

headwinds japan style, ZIRPED

JMFO

Sun, 02/02/2014 - 12:43 | 4393371 RaceToTheBottom
RaceToTheBottom's picture

Where the Fuck is a representative from the long lost Accounting profession???? Didn't that used to be a real profession? Now prostitutes have more respect.

Used tp be Accuonting was a real profession on par with Engineering.  Now Accounting has sold out. Imagine if Engineering had a NonGAAP equivalent?  This design of a bridge will fail if you build it but since you pay the bills, we are giving you this design and are telling you it will fail......

Sun, 02/02/2014 - 18:59 | 4394308 Basilian
Basilian's picture

This article was generic nothingness.

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