Posted on 05/12/2005 8:08:27 AM PDT by TXBSAFH
Wal-Mart profit misses forecast; outlook weak
CHICAGO (Reuters) - Wal-Mart Stores Inc. on Thursday reported a weaker-than-expected profit and said second-quarter results would miss Wall Street forecasts as steep energy prices and cool, wet weather cut spring sales.
Shares of Wal-Mart, which said gasoline prices would continue to curb consumer spending in the current quarter, fell 4 percent in premarket trading. The world's biggest retailer said it expects trends to improve in the second half and remained optimistic about the U.S. economy.
"Our results were not up to Wal-Mart standards," Chief Executive Officer Lee Scott said on a recorded message, citing steep oil prices and unusually cool, wet weather in parts of the United States.
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We love Walmart. It puts food on our table.....
Walmart is one of the best ran companies in the nation. They cut costs like you would not imagine. We sell product to them and we know what it took to get our product in their stores...... very very low profit. You would be SHOCKED!
We are in agreement.
But if Wal-mart is truly mature and is no longer a growth business, it still has 5.5B in cash and can produce cashflow in the 20B range.
Right now the dividend yield is 1.25%. If they decided to just dividend more cash out to the shareholders it could be a stock yielding a reliable 6-7% dividend.
I'm not telling you what to do or recommending anything - make up your own mind.
But slowing growth is no reason to be a panic seller.
They renovate about half as many stores as they build new every year. They are constantly building and improving their facilities and supply lines.
Walmart bashing checklist:
1) Driving out manufacturing jobs
2) Building up the "ChiCom" military
3) Don't pay any benefits and low wages
4) Drive out all the "mom and pop" stores
5) Only store selling goods made in China
6) steal land from people to build stores
Let's see how fast all these union talking points can develop.
Mostly via people who read and understand economics books.
how many mom and pop shops stayed open 24-7 and employed 100+ people a shift before wal-mart came to town?
"No, if you read the article, it's more American dollars going to the Saudis."
my, my...testy for a HS student aren't you? LMAO
don't they teach "respect for elders" where you go to school?
fyi, not all crude comes from the "Saudis"...
and Walmart is still a toilet full of Chicom junk.
It probably started because conservatives oppose Marxism.
And regulating the economy is Marxist.
so far in the less than 50 posts on this topic, the only one not hit on was #6. Koblenz hit most of them in one post.
Really easy to pick out you union lovers in every WalMart bashing thread. Unions have driven manufacturing jobs out of union states in the 70's and 80's and now out of the country. China is only the latest country to receive these jobs. Remember Japan, Taiwan, Mexico? Maybe your union should send you to spelling class, it might help make your rantings more readable.
Well said.
As for buying from overseas. Sure, why not? In certain areas there is simply no way for high waged Western workers to compete with lower-waged workers who have roughly equable productivity. If you protect such an uncompetitive industry with tarriffs or subsidies you are essentially adminstering a welfare scheme in all but name.
Such protection can make sense in certain "strategic" areas. It makes sense to have some internal food industry for instance, even if other countries can grow you the food cheaper. You can make a case for your own defence industries in the same way. But - assuming that the playing field is flat in other respects - non-strategic industries simply have to compete, not ask for handouts. The laws of the Market have never been repealed.
Are you trying to tell me that the McDonalds in China are being run by the the chicoms?
China is no longer communist. The people want capitalist goods, they want an opportunity to participate in capitalist markets, and region by region they are getting increasingly fed up with the government taking their stuff.
As participation in global markets leads to a strong middle class, the Chinese government will collapse. You can't control people who can buy internet access, afford trips to immensely superior capitalist nations, afford education, etc.
Also, you are very consistently misspelling "Chinese." Are you an expert in that which you cannot spell?
>>How's your union helping you out lately?
united and u.s. air both dumped their pensions on you. that was a management decision. further, us air had the nerve this week to ask for $55 million dollars to pay "retention" bonuses to their management people.an average of 29k per manager. there is enough greed and blame to spread around.
I agree with an earlier post--you are truly stupid.
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