CTC Poll: Corporate Treasurers Plan to Increase Capital Expenditures by 2011

Nearly two-thirds of corporate treasury and finance executives expect to increase capital expenditures by the first half of next year, according to a new survey of corporate treasury and finance executives with Association for Financial Professionals' Corporate Treasurers Council (CTC).

The straw poll of roughly 30 CTC members took place July 21 as part of a virtual roundtable.

When asked how they expect to eventually deploy their excess cash, 50 percent said they expected to increase capital expenditures, and 80 percent were looking at acquisitions. Slightly more than a third said they were looking to hire, and just over 10 percent planned to increase dividends and repurchase stock.

When CTC members were asked when they expected to deploy their excess cash, 43 percent said during the first half of 2011 while just over 20 percent said they had already begun deploying the cash, or would do so in the next 3 to 6 months.

The July survey corroborates earlier anecdotal evidence from 14 CTC roundtables that occurred nationwide in June. At the very least, CTC corporate treasury and finance executives are more sanguine about the economy and the outlook for growth in the coming months. Based on the July survey, it seems CTC members also do not believe a double-dip recession will occur.

Virtually every CTC member who participated in the June and July roundtables said their company was growing.

The findings from CTC members are in sharp contrast to media reports. Even AFP’s recent 2010 Liquidity Survey said that corporations had increased their cash balances over the prior six months and remained very conservative about their short-term investments.

Craig Martin is AFP's treasury practice lead and director of executive programs. He can be reached via cmartin@afponline.org