At the margin, refining capacity, local demand, these sorts of things matter from day to day.
The weakness in output growth at home will open up a growing margin of spare capacity that will over time bear down on inflation.
But inflation should then drop back, as the contribution from retail energy prices wanes and the margin of spare capacity in the economy increases.
But they argue that "this approach also brings with it many of the same risks that have negatively impacted Intel over the last few years, " including margin pressures and the capacity to handle the new lines.
Higher production, capacity and efficiency "drove significant margin expansion" during the quarter, Chief Executive JifanGaoJifan Gao said.
Higher production, capacity and efficiency "drove significant margin expansion" during the quarter, Chief Executive Jifan Gao said.
Despite a growing market, capacity explosion created rampant competition and margin pressures.
Since Akzo would be able to supply Wal-Mart from its existing manufacturing capacity, Barker estimates that the gross margin on Akzo's budget brand decorative paint would be an impressive 30%.
How much to worry about capacity utilisation and how much to worry about possible margin shrinkage?
The increased orders improved capacity utilization which we expect to result in gross margin also exceeding the high end of our previous guidance.
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"On the margin, a new nuclear plant is not a cheap addition, but adding to the capacity of our existing nuclear fleet is quite economical--about half the price of a new nuclear plant, " Rowe says.
With global demand recovering and increasing chemical demand from emerging markets such as China, we expect that additional capacity expansions and economies of scale advantages should lead to market share and EBITDA margin growth for this division.
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