General Motors Co’s new chief financial officer told analysts the automaker remains committed to the low-debt strategy and discipline on vehicle pricing emphasized by his predecessor. In a dinner meeting with analysts on Thursday, Dan Ammann said GM faced limited impact from the Japan crisis, was increasing its auto credit capabilities, and was reducing its exposure to incentives in the U.S. market, according to research notes from Barclays Capital and J.P. Morgan. “Dan emphasized fundamental continuity around GM’s financial strategy and philosophy with his predecessor,” Barclays analyst Brian Johnson said. “Dan plans to continue the low-debt strategy of his predecessor.” [Reuters]
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Latest Survey of CFOs Confirms That Surveys of CFOs are Bunk
Less than two weeks ago, we shared with you the latest results from Grant Thornton’s National CFO Survey.
What we learned is what we already knew, which is that the job market sucks and will continue sucking if we are to believe the 516 CFOs surveyed from October 5th to October 15th:
In a national survey of U.S. Chief Financial Officers (CFOs) and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, only 29% plan to increase hiring in the next six months, while 21% plan to decrease hiring.
Not so good, huh? Well fortunately for all of you looking for a job out there, the GT methodology is severely flawed for two reasons: 1) It included the extra-super-tragic days of October 5th and October 15th when CFOs were feeling especially negative and 2) They survey far too many CFOs.
Had they performed their survey on October 6th through the 14th like FEI and Baruch College and kept cut their population by roughly half (FEI/Baruch interviewed 249 CFOs), they would have discovered that things aren’t really that bad at all:
While CFOs this quarter continue to forecast high unemployment nationwide (on average predicting at least nine percent through October 2011), hiring prospects at their own companies paint a rosier picture. More than half (56%) plan to hire additional employees within the next six months, and overall they anticipate a four percent increase in hiring over the next six months.
So obviously Grant Thornton just needs to tweak their methodology a bit and then we’ll all be on the same page.
Until that happens, feel free to get some of your hapless friends together and start asking CFOs for their broad-based economic outlook. It appears that as long as you have a shell of a methodology and manage to get at least 250 responses, it’s perfectly acceptable to share the findings with everyone and claim that things are turning around.
Weatherford CFO Not Taking $500 Million Accounting Error Well; CEO Slightly More Upbeat
WTF WFT CFO Andrew Becnel needs a hug:
Weatherford International Ltd. Chief Financial Officer Andrew Becnel called a $500 million accounting error disclosed by the oilfield-service company late Tuesday an “embarrassment,” the damage of which is “impossible to quantify.”
But you know who’s taking this whole snafu in stride? CEO Bernard Duroc-Danner that’s who! BDD told investors on a conference call today that nothing is fucked and that this will all be yesterday’s news in no time:
Chief Executive Bernard Duroc-Danner said there is no risk of a U.S. government investigation or of any tax penalties or fines related to what he characterized as a mistake in calculating the tax rates on dividends moved from one subsidiary to another.
Geez. Give the SEC some credit wouldja? Just because they missed a few things here and there doesn’t mean they won’t ask any questions about your material weaknesses.
Weatherford Finance Chief Calls Accounting Error an ‘Embarrassment’ [WSJ]
Mysterious CFO Firing of the Day: Angeion Corp.
Anyone that is in St. Paul/Minneapolis (ideally Baker Tilly Virchow Krause employees) should get in touch with us because this reeks of bad behavior that we absolutely must know about:
Angeion Corporation has terminated the employment of its Chief Financial Officer, William J. Kullback, effective July 9, 2010. The termination of Mr. Kullback is not related to any issue with respect to the Company’s financial statements.
Yes, that’s all there is. We did poke around a little bit and found that Mr Kullback was formerly with Price Waterhouse which could lead to believe that he’s got a bit of a temper and/or was roofied but then again we’re just throwing that out there.
We rang up Angeion to see what’s what and left a message with CEO Rodney Young who is supposed to call us back. We’ll report back if we find out the scoop.
8-K [SEC Filing]
UPDATE: Mr Young got back to us and we had a very pleasant chat although he wouldn’t elaborate on the dismissal of Mr Kullback, so speculate away! Or if you’ve got actually knowledge that will do too.