Corporations posted operating earnings growth of 12% in the second quarter, despite meager U.S. economic results.
Slowing global economic activity will undoubtedly take an even greater toll on profits during the second half of 2011, but profit growth is far from recessionary territory. And corporations have proven adept at maintaining profitability in a weak economic climate.
Although corporate earnings guidance deteriorated dramatically in July, negative guidance remains far below levels previously associated with negative profit growth in outright earnings recessions.
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