Restructuring lifts outlook

Evidence showing implementation of corporate restructuring plans is leading fund managers to be increasingly positive on the prospects for profits recovery. Tomoko Fujii, analyst at Goldman Sachs, says: "First-half financial year 1999 business results confirmed successful restructuring efforts among manufacturers, setting the stage for sharp profit gains once final demand picks up. "The ratio of selling, general and administrative expenses to sales turned down for the first time in the current cycle. At the same time, the pace of reductions in employees and tangible fixed assets accelerat...