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View Full Version : Capital Spending in an economic downturn.


YoHo
05-07-2001, 04:23 PM
LArworth quoted the following in a thread in Diz-Biz. Proported to be from Disney CFO. Thought it would stir the waters around here.

Walt Disney Co. is looking for a silver lining in the U.S. economic clouds, and finding it, according to its chief financial officer.

The media giant is taking advantage of cheaper stock valuations, lower interest rates, and reasonable construction costs to consider acquisitions, debt offerings, and capital investments, Chief Financial Officer Tom Staggs said.

"You can't just get into your bunker and cover your head," Staggs said in an interview. "In a tough economy there are greater opportunities, and you have to invest to capture those
opportunities."

"It's helpful to me that I'm sitting here building in the middle of a downturn," Staggs said, "I suspect I'll do better on construction costs than we otherwise might have."

Because the majority of Disney's capital spending is for its theme parks, Staggs said the company focuses on long-term returns.