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We are now forecasting just 4% volume growth, in line with its distribution channel, and already have margin deterioration as a result of the price declines baked in.
"There was a gross margin deterioration in the quarter and the question is, does that continue into the new year," he said.
Ms. Callies pointed out that the drag on small-company performance was not limited to the first quarter; margin deterioration among these concerns was a constant through the second half of 1997 as well.
I then went to some Wall Street presentation — and I made quite a few of them — and when I was making my normal presentation, someone raised their hand and asked, can you give us the margin deterioration that will occur from all the extra spending on account of 9/11.
"Furthermore, unlike Q1, we suspect gross margin deterioration to be a factor as management seeks to clear inventory build-up".
"Conversely, our outlook would worsen on margin deterioration and market share losses in the optical and enterprise businesses".
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We found that both simulation and lecture based groups had lower scores at 2-week follow up compared to post teaching, and although the margin of this deterioration was smaller in the simulation group (1.3 vs. 3.6), this did not achieve significance, (p = 0.1670).
"We expect Dell to aggressively manage cost/expense with the goal of limiting deterioration in operating margin," Citigroup analyst Richard Gardner wrote in a note to investors Thursday.
Mr. Pearson, the Dell spokesman, declined to discuss the financial details of the deal or whether the company expected to see any deterioration of profit margins.
Transport capacity constraints in the US, weaker EU sugar prices and a deterioration in ethanol margins were behind the hit to its bulk ingredients unit, it said.
Disinflation could explain the intriguing deterioration in operating margins among small companies recently identified by Christine A. Callies, investment strategist at Credit Suisse First Boston in New York.
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