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Mr. Hesse, 54, helped slow profit erosion as head of Sprint's local-phone spinoff, the Embarq Corporation, by closing call centers and creating packages of services.
There were further signs of profit erosion in the auto industry today when Delphi Automotive Systems, the supply company spun off from General Motors in 1998, reported a net loss for 2001 of $370 million, in contrast to a net profit of $1.06 billion a year earlier.
Only the blind would miss the profit erosion today.
In the years leading up to this, Kodak refused to cut prices for fear of profit erosion.
Although it attracts customer traffic, an ill-conceived price promotion has serious repercussions because it disproportionately draws bargain hunters, results in profit erosion and causes operational chaos due to erratic demands.
One way to deal with the potential profit erosion from craft competitors is to buy corporate rivals.
Similar(54)
It cited reduced demand for its semiconductors and continuing profit margin erosion in its cell phone business.
The result has been profit margin erosion for many brands and retailers, as well as related risks to consumer brand perception.
ANALYSTS also point to some profit-margin erosion and glitches in the integration of Avco Financial Services, a 1999 acquisition that added more than 1,200 branch offices and six new countries, and to a new law in Japan, where the Associates' foreign business is heavily concentrated, cutting the maximum interest rate it can charge to 29percentt from 40percentt.
Microsoft underscored that concern when it warned last week that it is facing both profit and sales erosion in the quarter that will end on Dec. 31.
The OECD is in the process of coming up with rules designed to tackle "base erosion and profit shifting", which involves companies using mismatches in tax rules to make profits "disappear" legally.
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