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Announcing you're thinking of getting rid of the PC business without a concrete plan was No. 2. Deteriorating profitability, particularly in services, was No. 3".
The IMF said deteriorating profitability and unresolved legacy challenges raise the risk that external capital and funding could become more expensive, particularly for weak banks with very low share prices.
"JLR faces negative performance trends with deteriorating profitability metrics, partially driven by a weakening Chinese market, as well as sizeable negative free cash flow generation due to higher capex spending required for the development of alternative fuel vehicles, starting to exert some pressure on JLR's liquidity position.
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Tax revenues were hit very hard by weak economic activity, deteriorating corporate profitability, elevated and rising unemployment, markedly reduced bonus payments, Badiani said.
"Profitability is deteriorating in North America; at any level of the market, these guys are not as profitable as they used to be," said Rod Lache, an auto analyst at Deutsche Bank Alex.
Industry profitability deteriorates rapidly as new entrants shatter pricing for all competitors for at least five years.
Although, in principle, the limit placed on the amount of electricity eligible for remuneration in the case of biogas installations provides an incentive to sell electricity at the highest possible price (see above), it is likely to deteriorate further the profitability of new installations.
Southern Europe's deteriorating credit conditions also hurt banks' profitability.
"It is clear from the deteriorating macro environment and the competitive pricing environment in certain regions challenging profitability that we must embark on a more aggressive transformation," he said.
Fidelity International, which employs 5,000 people, said it was cutting more than 14.0% of its workforce as the deteriorating investment market took its toll on the company's sales and profitability.
Managers in companies selling multiple products are making strategic decisions about pricing and product mix with distorted cost information, detecting the problem only after their competitiveness and profitability have deteriorated.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com