Big companies give up on profit forecasts

More large companies are shying away from providing a profit forecast for the following financial year. One reason is that the outlook for the domestic economy is sufficiently uncertain to make forecasts difficult. The more significant, reason, though, is the narrow filter through which many investment analysts view such forecasts. Coles Myer chief executive John Fletcher said “I've given up trying to talk to analysts about the importance of ideas and culture and standards because most of them are young and they've never ever run anything, so they have no experience about what it's like to be in business, and therefore they just don't understand it. So trying to explain it to them is just … I keep saying to them this is important, but they say how does this help my model?”