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We are in an intensely competitive industry. There is excess capacity. Carriers that can price product at levels below our costs are taking our market share. Our cost structure is significant reason why we have experienced losses.

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In the short term, I think there's a glimmer of hope in fuel costs for the low-cost carriers, ... Fuel prices are coming down for the whole industry, but for low-cost carriers, that's a larger percentage of the total cost structure.

These results are pleasing in that good revenue growth was achieved in the current low inflationary environment but many businesses experienced cost increases in excess of inflation, due to start-up costs of increasing capacity and fuel price rises.

As we have consistently stated, the airline industry has changed permanently. Northwest must significantly lower its costs to compete with other carriers. Many of these are legacy carriers that have already used the bankruptcy process to achieve changes in their cost structures or newer, low-cost carriers which have much lower labor and operating costs than legacy carriers.

The reason Ford is in this mess is product, product, product. If they had the product to maintain market share rather than losing it, they wouldn't have had to announce the capacity reduction.

Sonoco delivered on its key performance initiatives in 2005. The Company experienced sustained quarterly earnings increases, margin improvement and double-digit sales growth driven by acquisitions, improved company wide volume coming from significant new consumer product and market development, and geographical expansion. Our employees remained focused on meeting the needs of our customers while improving productivity and managing costs in all of our businesses. We continued our efforts to successfully hedge the majority of our natural gas needs to provide more certainty of energy costs, and we maintained a positive price/cost relationship, despite rising costs in most raw materials.

Harris E. DeLoach

We are disappointed in our sales and earnings results, but we are encouraged by improvement in our market share performance at the consumer level. Both the company and the domestic beer industry have experienced volume declines and significant cost pressures.

Oil remains the wild card for industry profitability. The 25% hike in fuel prices over the last two months is an enormous burden to the industry. However, the S$ 1.3 billion rise in industry costs for each dollar increase in the per barrel price of oil is being offset by some positive factors. Industry hedging levels are 50%. Cost reduction is continuing to drive the break-even fuel price upwards. And the US domestic yield rose 12.4% in February.

Giovanni Bisignani

The ratings reflect Dunkin's very highly leveraged capital structure, thin cash flow protection measures, narrow product focus and participation in the intensely competitive quick service sector of the restaurant industry.

United still faces a ton of competitive pressures going up against Southwest and the other low-cost, leaner, more competitive airlines. United and the other carriers still face high jet-fuel prices. That takes up a large chunk of their costs. They have cut so many costs since they went into bankruptcy. They cannot eliminate many more costs. Over time, fares will have to go up.

The industry has managed to respond well to inventory fluctuations, slightly excessive capacity levels, and rapidly changing market parameters. The industry appears to have a reasonable balance between production levels and capacity and end-user demand.

We have determined that with certain programs winding down at this facility, the most effective course of action is to better align our available capacity with the market, and make our overall cost structure more competitive.

In a year or so, is United going to have the most competitive cost structure among the legacy carriers?

Companies often implement collaborative planning and forecasting with upstream vendors and manufacturing partners, but they rarely translate these demand and production forecasts into transportation capacity requirements and share them with carriers. But some shippers are now providing forward visibility to carriers and securing capacity in advance. These shippers are receiving priority in capacity allocation over shippers that do not if only because carriers appreciate the effort these shippers are making to keep them informed.

Adrian Gonzalez

The new players have a cost structure that is on the average of about 2,500 dollars less a vehicle. That's a killer number when you're trying to get competitive. It's a lot easier to add costs than to take out costs.

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