Contact: Mark Panus, Duke-Fuqua, (919) 660-2903 or Chris Allen, FEI, (973) 898-4658
CFO SURVEY: COMPANY INTERNET SALES AND PURCHASES TO JUMP;
FEW PRICE INCREASES, STRONGER EARNINGS AHEAD
DURHAM, N.C., March 29— A new poll of 371 companies indicates that by next year more than half (56 percent) will sell their products over the Internet, accounting for an average of 8% of a firm’s total revenue. That’s a jump from 1998 when just 24% of firms reported Internet sales, representing an average of about 5% of total sales. The results are from the latest Financial Executives Institute/Duke University Corporate Outlook Survey, conducted the week of March 15.
"Internet sales are most important for high-tech firms," says Duke University finance professor John Graham, director of the survey. "In 1998 Internet sales represented 6.5% of all sales for high-tech firms, and this number is expected to increase to 11.1% in the year 2000. Communications and media firms expect 6%, and firms located in the Pacific region of the country expect 7.5% of their revenues to come from the Internet next year."
CFOs also anticipate that their companies will use the Internet to make more purchases from suppliers. Two-thirds of firms expect to make purchases over the Internet in 2000. Among those using the Internet, the executives anticipate using this method to make an average of 7.9% of all supply purchases next year. High-tech firms will purchase, on average, 10.2% of their inputs over the Internet in 2000. In 1998, only one-third of all firms made Internet purchases, representing 4.5% of total purchases.
Other findings from the FEI/Duke survey include:
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FEI/Duke CFO Survey
Health Care Costs
About the Survey
The survey is conducted quarterly by FEI and Duke University’s Fuqua School of Business. Each survey polls a broad cross-section of CFOs from over 3,000 U.S. companies. The current survey was conducted during the week of March 15, 1999. Complete survey results are available on the Internet at:
About FEI and Fuqua
Financial Executives Institute is the leading advocate for the views of corporate financial management. Its 14,000 members hold policy-making positions as chief financial officers, treasurers and controllers at 8,000 companies throughout the United States and Canada.
The Fuqua School of Business at Duke University was founded in 1970. Fuqua’s mission is to provide the highest quality education for business and academic leaders and to promote the advancement of the understanding and practice of management through research.