Private Sector Pay Cuts

[adamirer]

Last Friday INM demanded its staff take varying levels of pay cuts ranging from 5%-10% or else face the prospect of of shortened weeks, redundencies and forzen careers. The implication was the company was struggling... then... today....

"INM said today that its operating profit for 2009 is currently forecast to be within a range of €240-270m, down 10% on 2008."

What a shower of p****s. Pay cuts for those staff in companies that are struggling to survive is one thing, pay cuts when forecasted to make a €240m profit is entirely another. Wasn't O'Reily being labelled a 'patriot' here the other week?

Bully staff with fears for their jobs due to declining revenues and then announcing massive profits just goes to show why so many are cynical of big companies in Ireland and why the sactimonious crap that INM/Sindo spew is treated with distain.

[Rebel CNC]

Last Friday INM demanded its staff take varying levels of pay cuts ranging from 5%-10% or else face the prospect of of shortened weeks, redundencies and forzen careers. The implication was the company was struggling... then... today....

"INM said today that its operating profit for 2009 is currently forecast to be within a range of €240-270m, down 10% on 2008."

What a shower of p****s. Pay cuts for those staff in companies that are struggling to survive is one thing, pay cuts when forecasted to make a €240m profit is entirely another. Wasn't O'Reily being labelled a 'patriot' here the other week?

Bully staff with fears for their jobs due to declining revenues and then announcing massive profits just goes to show why so many are cynical of big companies in Ireland and why the sactimonious crap that INM/Sindo spew is treated with distain.

Profits of €240m sound great but won't be enough to keep up repayments on fairly sizeable loans - the largest of which is due to be repaid later this year. With a share price going through the floor they will not get the facility renewed!
The €240m doesn't include the value of write downs either.

[adamirer]

Profits of €240m sound great but won't be enough to keep up repayments on fairly sizeable loans - the largest of which is due to be repaid later this year. With a share price going through the floor they will not get the facility renewed!
The €240m doesn't include the value of write downs either.

€240m is €240m, even with the 1.2bn loan they have. APN is a sizeable asset, the business is very profitable, so there's the banks won't foreclose as long as they service the debt.

[Cookie68]

Profits of €240m sound great but won't be enough to keep up repayments on fairly sizeable loans - the largest of which is due to be repaid later this year. With a share price going through the floor they will not get the facility renewed!
The €240m doesn't include the value of write downs either.

? I must have a look at the accounts. I would have thought that loan repayments relate to cashflow rather than profit.

[myk]

They are still paying a dividend, which isn't really the action of a group in dire straights.

[Rebel CNC]

? I must have a look at the accounts. I would have thought that loan repayments relate to cashflow rather than profit.

You're right but they need to generate higher profits to generate the cash required to pay off the loan capital.
Chances are they will get refinancing but on a much higher interest rate.
Also, they probably got six decent months of trading in 2008 before things went really bad -2009 and 2010 are going to be carnage for them on the advertising front.

[adamirer]

You're right but they need to generate higher profits to generate the cash required to pay off the loan capital.
Chances are they will get refinancing but on a much higher interest rate.
Also, they probably got six decent months of trading in 2008 before things went really bad -2009 and 2010 are going to be carnage for them on the advertising front.

You'd think, but this was a trading statement, so either they bare faced lied or they still think they will be hugely profitable. €240-€270m is a forecast for 2009 bearing all that in mind, not the 2008 a/cs!

[H.R. Haldeman]

Their profits don't matter.

What matters is the big picture: all of us in this country need to pay ourselves less. Wages across the entire economy need the bubbly top 10%-15% to come off. This will help hasten drops in our costs of living (already under way) and we'll all end up much the same as we are now anyway. We are all corks in the same sea, so the sea-level dropping should not make much difference within the country, but will do great things for our competitiveness abroad.

10%-15% pay cuts for EVERYONE I say.