Article: Corus profits drop 50% in Q2 http://www.vancouversun.com/business/fp/Corus+profit+drops/2905229/story.html
Summary: Corus, a medai company reported that their profits dropped 50% in Q2 of 2010. The company earned $14.6 million in Q2 of 2010 compared to $29 million the same time last year. Adding to that is the fact that losses to the corporate segment of the company have almost doubled in the same time period. The $14.3 million loss was blamed on debt refinancing. Consolidated revenues and segment profits however, when up during the same period. The company's CEO: John Cassady said that the advertising recession was behind them and that the advertising problems facing the industry was over.
Connections: Chapter 15 talks about outsiders and insiders. Outsiders are interested in the revenues and profits of a company to analyze how they are performing. Insiders are concerned in making sure the company does it's best since their jobs usually depend on it. They analyze more information than outsiders and they do so more thoroughly. Insiders are the ones that must work hard to make sure Corus gets back up to previous profit levels.
Reflections: I am not surprised that their profits dropped as compared to the previous year. Companies were more reluctant to spend much money on advertising since they were amidst a recession. I also agree with CEO John Cassady in thatt the problems facing the industry is over. Now that we are out of a recession, people are willing to spend more, which in turn will allow companies to put more money back into avertising.
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