Latin American Business Outlook Insights 2013
Get an in-depth look at the top internal and external concerns for Latin American CFOs, along with forecasts for revenue, product prices, earnings, and capital spending. Explore key challenges and outlooks shaping the Latin American business landscape.
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Latin American Business Outlook Part of the Global Business Outlook A joint survey effort between Duke University, Funda o Get lio Vargas and CFO magazine Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 1
Top Internal Concerns for Latin America CFOs 1. Ability to maintain margins 2. Attracting and retaining qualified employees 3. Maintaining morale/productivity 4. Ability to forecast results 5. Working capital management 6. Supply chain risk 7. Managing IT systems 8. Counterparty risk 9. Protection of Intellectual Property 10. Balance sheet weakness 11. Pension obligations Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 2
Top External Concerns for Latin America CFOs 1. Consumer demand 2. Price pressure from competitors 3. Federal government policies 4. (tie) Corporate tax rates 4. (tie) Currency risk 6. Global financial instability 7. Foreign competition 8. Credit markets/interest rates 9. Cost of non-fuel commodities 10. Inflation 11. Cost of fuel Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 3
Forecast of % change over next 12 months Historical Responses Mar 2013 Response 15% 25% 10% Revenue 15% 5% 5% 0% Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 -5% Latin America United States Europe Asia 15% 10% Product Prices 10% 5% 5% 0% Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 0% -5% Latin America United States Europe Asia Notes: Presented data are the mean value for each region or country Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 4
Forecast of % change over next 12 months Historical Responses Mar 2013 Response 15% 25% Earnings 10% 15% 5% 5% Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 -5% 0% Latin America United States Europe Asia United States Europe Asia Latin America Brazil 15% 15% Capital Spending 10% 10% 5% 5% 0% 0% Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 United States Europe Asia Latin America Brazil -5% Latin America United States Europe Asia -5% Notes: Presented data are the mean value for each region or country, except medians are shown for Latin American earnings in Dec 2012 and Mar 2013. Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 5
Forecast of % change over next 12 months Historical Responses Mar 2013 Response 15% 5% # FT Employees 10% 5% 0% United States Europe Asia Latin America Brazil 0% Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 -5% Latin America United States Europe Asia -5% 10% 15% Wages & Salaries 10% 5% 5% 0% Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 -5% 0% Latin America United States Europe Asia United States Europe Asia Latin America Brazil Notes: Presented data are the mean value for each region or country, except medians shown for Latin America in Dec 2012 and Mar 2013. #FT=Number of Fulltime Employees Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 6
Business Optimism Index (Scale from 0 to 100) Historical Responses Mar 2013 Response 75 80 Country / Region 70 65 60 50 55 40 30 45 20 10 0 35 Brazil Mexico Argentina Chile Peru Colombia Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 Latin America United States Europe Asia 75 80 Own Company 70 65 60 50 40 55 30 20 45 10 0 35 Brazil Mexico Argentina Chile Peru Colombia Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 Latin America United States Europe Asia Notes: Presented data are the mean value for each region or country Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 7
Capital spending and net new investment Percent increase over next year 8% 7% 6% 5% 4% 3% 2% 1% 0% US Latin America Asia Europe Capital spending Net new investment 8 Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013
Where will your cross-border acquisitions occur? Latin America US Africa Europe Canada Europe Latin America Latin America US/Cana da Asia/Pa cific Basin 9 Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013
Should Your Countrys Currency be Depreciated? (Percent that Say Yes) 100% 80% 60% 40% 20% 0% Brazil Mexico Argentina Chile Peru Colombia 10 Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013
Expected Economic Growth of Your Country 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Brazil Peru Chile Colombia Argentina Mexico If US were NOT to enter a recession If US were to enter a recession 11 Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013
Duke/FGV CFO Survey in Latin America Press Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 12
Duke/FGV CFO Survey in Latin America Press Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 13
Latin American Business Outlook Part of the Global Business Outlook A joint survey effort between Duke University, Funda o Get lio Vargas and CFO magazine Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2013 14
