From the July/August 2011 issue of Treasury & Risk magazine

Inflation Threatens Profits

Price pressures could trim typical global company's profits by 9%, Hackett says.

The upward pressure on prices poses a serious challenge for corporate finance executives and could trim 9% from the profits of a typical large global company, according to recent research from the Hackett Group.

The problem is not just the magnitude of the price increases but their volatility, Hackett says. And while 61% of the companies Hackett surveyed say they’re good at anticipating price inflation, only 39% say they are successful at mitigating it.

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