CFOs still see bright side

American CFOs’ optimism about the economy and their own companies’ financial prospects remains high, despite continuing high oil prices, relentless increases in health care costs and added expenses required to protect their companies from a possible terrorist attack.

According to the September “CFO outlook survey,” conducted by Financial Executives International and Baruch College’s Zicklin School of Business, oil prices are hurting earnings at about one out of five companies (19%) overall. The manufacturing industry is the most affected, where 36% report a significant negative impact. In contrast, two-thirds say earnings are not tied to the price of oil in any significant way.

When asked about their attitudes toward Sarbanes-Oxley, almost 60% of private companies said they plan to comply with at least some aspects. Their reasons: “It’s a better way to run a business” (61%); “It will apply eventually to private companies” (52%); and “Stakeholders should be treated like public investors” (35%). (More than one response was allowed).

Of the private companies that might consider going public, over half (54%) say Sarbanes-Oxley will not deter them. In contrast, 20% are holdouts, saying they will not go public because of the requirements.

For more on the survey, see www.fei.org/cfosurvey.cfm.