Chief financial officers of engineering companies underestimated the speed of the industry's post-recession recovery, but they are taking aggressive steps to rein in costs and focus on balance sheets. In a survey of 120 firms, CFOs report median growth of 2% in 2010, below the 4.5% increase they projected for the year when queried last April. They also report a 9.6% median profit margin for last year, less than the 10.7% return they had forecast a year ago.
“I see the increasing role of metrics and squeezing costs,” said Paul Zofnass, president of EFCG Inc., a New York City financial adviser and industry-focused mergers-and-acquisitions broker, which conducted the survey. Results were shared at an April 15 conference in New York City that attracted about 125 respondents and other CFOs. Firms appear more confident this year, projecting 6.3% median revenue growth and an 11.1% median rise in profits by the end of 2011, he said.