From an economic perspective, first-quarter advance estimates show that Singapore's GDP saw a record slump of 11.5 per cent. However, early signs from the United States reporting season have not been all gloom and doom. -- ST PHOTO: CAROLINE CHIA
THE severe recession and the way Corporate Singapore is faring will make the upcoming reporting season one of the most eagerly watched in recent history.
This time last year, it was all about how big the record-busting profits were. But now, the experts will be poring over the first-quarter earnings with forensic intensity to assess just how bad things are and how much worse they might get.
The reporting period goes into full swing this week with big guns CapitaLand and Keppel Corp among the first key cabs off the rank.
Analysts expect overall earnings for the quarter to have fallen by up to 35 per cent from the same period last year.
Part of that can be explained by the fact that the profits in early last year were exceptionally good while this year, the financial market turmoil and recession have delivered a substantial double blow to earnings.
'It's not just a stock market crisis, but an economic crisis as well,' said Mr Gabriel Yap, senior dealing director at DMG & Partners Securities.
'Almost all sectors are expected to see a sharp drop in earnings.'
Westcomb Securities research head Goh Mou Lih said: 'It should be bad. We could see the full impact of the economic recession and the fallout from the Lehman Brothers collapse on earnings in the first three months.'
From an economic perspective, first-quarter advance estimates show that Singapore's GDP saw a record slump of 11.5 per cent.
However, early signs from the United States reporting season have not been all gloom and doom.
