RE: new maturitynot sure how management will deal with this cotinuing problem
I can think of a few things:
1- Increase productivity : higher output per unit cost- whether HR or plant efficiency and/or efficacy..
2- Increase revenues: yup find new sources of revenues to keep ahead of the curve.
3- Reduce cost: I think they were clear as to why they want to link to China in one of their recent presentations- lower cost sourcing?
4- Reduce taxation (well, that's a cost too!)- hey let's hear what's cooking for business from the fed's budget today... canadian businesses are all over the fed's case to promote competitiveness in a rapidly rising dollar environment.
Let's see how they fared in Q1 with against the following Loonie averages:
Average Rates Jan-March 2006
January
0.863694 USD (21 days average)
February
0.870547 USD (19 days average)
March
0.864158 USD (23 days average)
versus
Average rates Q4//Oct-Dec 2005
October
0.849434 USD (21 days average)
November
0.846514 USD (22 days average)
December
0.860864 USD (22 days average)
Note that Q4/05 wasn't bad considering the delta from Q3 average:
July
0.817227 USD (21 days average)
August
0.830422 USD (23 days average)
September
0.849013 USD (22 days average)