I think the report/presentation is generous and time-sensitive. I see a number of key fundamentals which will hurt all/every business (excluding arms manufacturers perhaps?):-
- Interest rates will rise dramatically. This will hurt B&Os efforts in recent years to re-finance
- They may have reduced ability for additional borrowing facilities (Cashflow is collapsing)
- Non-staged sales. Millenials will have a lot less disposable in 2022/23
- Overall, can see a compounding of UK outlook, disposable income with Sales hit
- Can expect to see a compounding of German outlook, disposable income with Sales hit
- Raw materials (particularly Aluminium, Nickel and polymers) price increase as western currencies devalue.
- Yes a higher interest rate will hurt all sales for all companies. But this is needed if we want to slow down the economy, which are very much needed.
- B&O have much more Cash and bonds than they have debt. They can continue in many years on Zombie mode. This is not the case right now, as they are investing a lot in product development, which will be good for the future.
- You cannot say this for certain, in Denmark the employment rate is as high as it gets. This means that the younger generation can pick a job by their choosing, and get very high start salaries. Some might get fired if things slow down, but most will keep their high pay.
- Yes but nothing wrong in things slowing down. Right now they cant produce the amount they can sell.
- Same
- The raise in price on these materiels have been raising mostly because of higher demand. If the demand slows down, as you suggest, These thing will get a more normal state, and the prices will be lowered a lot. Off cause a small inflation dent will stay but it will be small if they have succes in slowing down the economy.
Slowing down is hard without crashing, lets hope.