Multilingual Business Communication

March 16, 2009

Crisis makes companies quiet

Filed under: crisis communication, Dorien Heiremans, Uncategorized — meertaligebedrijfscommunicatie @ 8:12 pm

To give their shareholders some indication of future profits, dividends or company success, it is common for companies to publish financial targets for the year to come.

Recently some companies, such as Unilever, have opted to refrain from giving earnings estimates for 2009. They have done so because they claim forecasts can never be accurate during these times of financial turmoil or because they are afraid pessimistic predictions will have a negative effect on share prices. However, the Economist warns for companies that refuse to issue their annual financial targets because it may be an indication of an underprepared management or an excuse to avoid to be held acountable for possibly bad results.

While it is true that the recent crisis has made it harder to accurately make predictions, let alone positive predictions, not making any predictions at all may be an unwise choice. Especially during these uncertain times, it is important to maintain good investor relations.

Dorien Heiremans.

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