North American Update – JUNE, 2008

Contribution from Paul Carman, VP North America, Document Boss

While the economic news in the US does not improve, companies have fought back and are beginning to show improved results. And for a change, those improved results are coming from the technology sector!  While it is too early to forecast year end results, preliminary reports by high tech companies are encouraging. The most depressed results are coming from the consumer goods sector, not unusually in an economic downturn.
True leadership and strong company strategies seem to be winning. We see a very active M&A market continuing, with the HP acquisition of EDS a shining example. The true performers are using this weak time to fortify themselves for the longer battle. Most industry gurus are encouraging companies to retrench and re-invigorate during these down times.  Leadership changes are occurring at many companies in the US as Boards and CEO’s are building their “dream teams” to win in the future.
All analysts are pointing to renewed M&A activity as a sign that companies are escaping the “panic” mode of an early slowdown and executing their strategies to assure long term success.