{"id":122837,"date":"2021-10-13T14:08:39","date_gmt":"2021-10-13T14:08:39","guid":{"rendered":"https:\/\/fin2me.com\/?p=122837"},"modified":"2021-10-13T14:08:39","modified_gmt":"2021-10-13T14:08:39","slug":"rising-energy-prices-will-squeeze-company-profits-says-business-consultant","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/rising-energy-prices-will-squeeze-company-profits-says-business-consultant\/","title":{"rendered":"Rising energy prices will squeeze company profits, says business consultant"},"content":{"rendered":"<ul>\n<li>Rising energy prices will increase business costs and narrow profit margins of companies around the world, said Richard Martin, managing director of IMA Asia.<\/li>\n<li>The squeeze on company earnings will likely come in the fourth quarter of 2021 and the first quarter of 2022, said Martin.<\/li>\n<li>U.S. firms have a better chance at protecting their margins thanks to a &quot;very buoyant&quot; consumer market, while those in China and India could face greater risks, he added.<\/li>\n<\/ul>\n<p>Rising energy prices will increase business costs and narrow profit margins of companies around the world, a management consultant said Wednesday.<\/p>\n<p>Prices of energy commodities \u2014 including oil, natural gas and coal \u2014 soared in recent weeks as supply remains tight and demand rebounds from a Covid-induced slowdown. That has contributed to power and fuel shortages from Europe\u00a0to Asia.<\/p>\n<p>&quot;It&#x27;s a big problem for companies. It will narrow their profit margins because as their input costs go up, the question is how quickly can they raise their selling price,&quot; Richard Martin, managing director of IMA Asia, told CNBC&#x27;s &quot;Squawk Box Asia.&quot;<\/p>\n<h2>Stock picks and investing trends from CNBC Pro:<\/h2>\n<p>This manager&#x27;s fund is up almost 20% this year. Here&#x27;s how he beats the inflation jitters<\/p>\n<p>In a world of disappearing income, these stellar dividend stocks offer returns and stability<\/p>\n<p>Missed out on bitcoin? Bank of America picks 12 stocks to ride the next crypto wave<\/p>\n<p>The squeeze on company earnings will likely come in the fourth quarter of 2021 and the first quarter of 2022, said Martin, who advises senior executives in charge of Asia-Pacific operations at major global companies. \u00a0<\/p>\n<p>Higher energy prices have coincided with supply chain disruptions and a shortage of shipping containers \u2014 which have contributed to a rapid rise in inflation. \u00a0<\/p>\n<h2>India, China may be at risk<\/h2>\n<p>Companies in the U.S. have a better chance of protecting their profit margins thanks to a &quot;very buoyant&quot; consumer market, said Martin, adding that it will allow them to raise selling prices quickly.<\/p>\n<p>But those in other countries face grimmer prospects, said the consultant.<\/p>\n<p>&quot;In many countries around the world, we don&#x27;t have such a buoyant consumer market. China is one, in fact a lot of East Asia is in that area. And as the costs go up, the profit margins go down,&quot; said Martin.<\/p>\n<p>India is also at risk. Martin noted that the Indian stock market has been on a tear, but the South Asian country will struggle to pass on costs to consumers.<\/p>\n<p>Source: <a href=\"https:\/\/www.cnbc.com\/2021\/10\/13\/rising-energy-prices-will-hurt-companies-profit-margins-ima-asia.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rising energy prices will increase business costs and narrow profit margins of companies around the world, said Richard Martin, managing director of IMA Asia. The [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":122836,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rising energy prices will squeeze company profits, says business consultant - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/rising-energy-prices-will-squeeze-company-profits-says-business-consultant\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rising energy prices will squeeze company profits, says business consultant - Fin2me\" \/>\n<meta property=\"og:description\" content=\"Rising energy prices will increase business costs and narrow profit margins of companies around the world, said Richard Martin, managing director of IMA Asia. 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