Fiscal Cliff: Corporate Eyes Watching

The fiscal cliff.

It’s on many people’s minds.

It’s on the stock market’s collective mind, say analysts explaining the recent ride there.

Among the many corporate filings to the Securities and Exchange Commission in November, the term has shown up nearly 300 times.

Sometimes, it’s come up as a never-mind-the-fiscal cliff.

From the Chrysler Group comes this:

“Even with all the talk of a looming fiscal cliff, Chrysler Group is well positioned for a strong sales finish to the year,” said Reid Bigland, President and CEO – Dodge Brand and Head of U.S. Sales. “Our November sales were up 14 percent and we extended our sales streak to 32-consecutive months of year-over-year sales gains. We are expecting a strong December as the industry continues to recover from the East Coast hurricane and consumers continue to respond to our popular year-end Big Finish event.”

Dun and Bradstreet Corp. offers this warning:

“As a result of the macro-economic challenges currently affecting the global economy, our customers or vendors may experience problems with their earnings, cash flow, or both. This may cause our customers to delay, cancel or significantly decrease their purchases from us and impact their ability to pay amounts owed to us. In addition, our vendors may substantially increase their prices without notice. Such behavior may materially, adversely affect our earnings and cash flow. In addition, if economic conditions in the United States, including any possible impact of an upcoming fiscal cliff, and other key markets deteriorate further or do not show improvement, we may experience material adverse impacts to our business, operating results, and/or access to credit markets.”

Some have their eyes on the possible direct impact of the talks:

HCA Holdings, in noting what it’s watching economically,  includes: “The effects related to the enactment and implementation of the Budget Control Act of 2011 and the outcome of pending government negotiations related to avoiding the “fiscal cliff” which would result from the BCA’s automatic spending reductions that include cuts to Medicare payments and tax increases beginning in federal fiscal year 2013, and the effects related to cuts to physicians’ Medicare reimbursement if Congress does not override the scheduled reductions related to the Medicare Sustainable Growth Rate.”

And some are holding out for a positive outc0me.

This comes from American Software Inc.’s filing:

“The economic headwinds which began for us this past Spring, and which are believed to be the result of the worldwide economic slowdown, continued during the second quarter,” stated James C. Edenfield, president and CEO of American Software. “These headwinds have slowed our rate of growth. Hopefully, a resolution of the ‘fiscal cliff’ will enable more of our prospective customers to regain their confidence so that we can accelerate our rate of growth. ”

Jeff Kearns contributed to this report. 


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