As detailed in this month’s Corporate News, February has seen the recessionary effect of 2009 emerging in company results. ExxonMobil reported excellent overall figures, but markedly lower downstream earnings. Shell were well down overall, with downstream even weaker; BP were the same. So too Chevron, who also announced a wholesale review of their refining and downstream business.
This is clearly to be expected when lower volumes (and prices) apply in a capital led refining business and the scale of the challenge was encapsulated by Fuchs, the world’s largest independent lubes business. Their 2009 9Months results were presented at the German Corporate Conference and showed total sales down 19%, some 25% lower in Europe alone.
A pre-emptive 9% reduction in global staff levels helped Fuchs deliver strengthened profits for Q3 and Q4, with improved margins and cash levels as oil prices and stocks decreased. The turnaround is impressive, given that the organisation faces the ‘perfect storm’ of a core business in Germany and an exposure to both First Fill and the manufacturing industries.
Toyota’s travels are reminiscent of all sorts of other bodged product recalls and corporate hubris, of the level previously associated with GM. Having become the largest global car manufacturer with an enviable, carefully nurtured reputation for quality Toyota now has to rebuild. The good news is actually people’s memories are heavily skewed towards the most recent experience. If they implement the recall with their fabled efficiency, the brand will soon recover. Personally I think there should be some good deals available on Toyotas if you want to buy now – apparently that’s one reason why their dealers are so busy!
Sebastian Crawshaw, Chairman OATS