Profit margin

profit margin for the bearings industry has been established to be 15 % (see recital 59), the Commission has found that the profitability achieved during the investigation period fell far below this figure.

3.4 The examination of the impact of the dumped imports on the domestic industry concerned shall include an evaluation of all relevant economic factors and indices having a bearing on the state of the industry, including actual and potential decline in sales, profits, output, market share, productivity, return on investments, or utilization of capacity; factors affecting domestic prices; the magnitude of the margin of dumping; actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital or investments.

2.2 When there are no sales of the like product in the ordinary course of trade in the domestic market of the exporting country or when, because of the particular market situation or the low volume of the sales in the domestic market of the exporting country[30], such sales do not permit a proper comparison, the margin of dumping shall be determined by comparison with a comparable price of the like product when exported to an appropriate third country, provided that this price is representative, or with the cost of production in the country of origin plus a reasonable amount for administrative, selling and general costs and for profits.

Indeed, the very nature of an average profit margin entails that the corresponding individual profit margins will to some degree vary.

It was also specified that a profit margin of 2 % to 3 % should be considered as reasonable.

The Norwegian authorities argued that a normal profit margin considered of 12 % is too high.

It was considered, however, that this profit margin, although valid on average for all the exporting producers, would not necessarily reflect the profit margin of each of the companies individually.

Another exporting producer not selected in the sample submitted that a normal profit margin would be 2 % to 5 %.

The profit on exports of the product concerned for each company initially selected for the sample was corrected to 3,5 % of turnover, an average of the profit margins submitted to be the normal profit margin for these sales.

The non-injurious price has been obtained by adjusting the sales price of the Community industry by the actual loss/profit made during the IP and by adding the abovementioned profit margin.

The non-injurious price has been obtained by adjusting the sales price of the Community industry by the actual loss/profit made during the IP and by adding the above mentioned profit margin.

It was submitted by the Pakistani exporting producers that the profit margin of 6,5 % of turnover was higher than appropriate minimum profit established in other investigations concerning the same product.

This correction was done by using for all exporting producers a profit margin on export sales of 3,5 % (the issue is explained in full in recital 56).

It was argued by the exporting producers and by two associations that it was unreasonable to consider such profit as a reasonable profit for Pakistani exports to the Community market, while at the same time considering a profit margin of 6,5 % as an appropriate minimum for the Community industry.

This profit margin was considered reasonable as it refers to profits of the Community producers in a normal trading situation unaffected by a sudden sharp rise in imports.

In other words, while the Institutions are reasonably satisfied that the average profit margin used is appropriate, this average profit margin is - given the important knock-on effects for the other elements of the constructed normal value and thus for the dumping calculations in general - clearly not a basis in order to specify an individual duty rate.

In the light of the fact that the information available allowed the Commission only to calculate an average profit margin on exports of the product concerned it was considered appropriate to calculate one overall dumping margin applicable to all the exporting producers.

In this context, it is to be noted that in view of the revision of the methodology used to establish the cost of acquisition, no profit margin has now been used at the level of the sampled producers.

In this case, it was found that a profit margin of 6,5 % could be regarded as an appropriate minimum, calculated as an average of the level of profitability obtained by the Community industry in the years 1999 and 2000.

The information submitted by interested parties, and used to correct the reported costs for each of the six initially sampled companies, contained references to an average profit margin on exports of the product concerned of 2 % to 5 %.

Indeed, in order to ensure transparency and to enable each individual exporting producer to cross-check the calculations of the Commission, they all received the full calculation which reflected the abovementioned profit margin of 3,5 %.

More importantly, the fact that an average profit margin had to be used as facts available for all exporting producers was a major reason for arriving at the conclusion that it would be inappropriate to specify individual duty rates for each individual exporting producer.

It should also be noted that the audited accounts, for the IP or for a period covering most of the IP, of the companies concerned which are producers and sellers of almost exclusively textile products, showed on average an overall profit margin on turnover of approximately 5 %.

This price was calculated by taking the respective cost of production for the Community product (adjusted to take account of transport costs to ensure a proper comparison with imports delivered to the main geographical area for consumption) to which was added a profit margin of 6,8 %.

Taking into account the level of profitability obtained by the Community industry in the years 1999 and 2000, it was found that a profit margin of 6,5 % of turnover could be regarded as an appropriate minimum which the Community industry could have expected to obtain in the absence of injurious dumping.

Taking into account the average level of profitability obtained by the Community industry in the years 1999 and 2000, it was found that a profit margin of 6,5 % of turnover could be regarded as an appropriate minimum which the Community industry could have expected to obtain in the absence of injurious subsidisation.

These margins were furthermore in sharp contrast with the average negative profit margins (-9,4 % on turnover) reported by the same companies for sales of the product concerned to other countries, and they were also in contrast to the 1,6 % profit margin on turnover reported on average for exports of other textile products including very similar products (processed fabric, table linen, curtains) with similar cost structures, sold also to the same type of clients, or even to the same clients.

the actual costs of the non-Community carrier providing the services, plus a reasonable margin of profit;

The profit margins reported for sales of the product concerned to the Community were by far exceeding the margins used in internal price settings and negotiations with customers.

In this case, the variation was important as the range of possible profit margins quoted differed from 2 % to 5 %.

For specific classes of non-life business which are subject to a particularly volatile risk profile, the existing solvency margin requirement should be substantially increased so that the required solvency margin is better matched to the true risk profile of the business.

As concluded in recital 41, it was found that the reported costs of production and, as a consequence, the reported profit margins for exports of the product concerned were false.

The profit margins used at the level of the sampled exporters, in the limited number of cases where values were constructed, were in the range 12 % - 21 % with the average being close to 15 %.

A Norwegian party maintained that the profit margins used in constructing the costs of acquisition and normal values were unrealistically high (recitals 31 and 38 of the provisional Regulation).

This methodology shall cover, inter alia, the manner in which normal competitive pricing, actual costs and reasonable profit margins shall be assessed in the specific context of the aviation sector.

This is so because it would lead to unjustifiably high dumping margins for some exporting producers and to unjustifiably low dumping margins for some other exporting producers as compared to a situation where the real individual profit figures, i.e. those established in the case of full cooperation, had been used.

They stated that these statements related to profit margins considered acceptable for sales by the Community industry. In this respect, it is noted that these statements (i) were made during a hearing;

In the southern margin (profile Sopada, Fig. 7), however, the first corals were determined in the Upper Danian (Montian) only, and they occur up to the Upper Thanetian, i.e. throughout the Middle and Upper Paleocene.

In cases where normal value was constructed, this was done by adding a reasonable amount for selling, general and administrative expenses ("SG& A") and a reasonable margin of profit to the cost of production in Norway.

The need to calculate a global dumping margin is the result of the following considerations: The profit margins on export sales submitted by the exporting producers in their replies to the questionnaires could not be used and had therefore to be corrected.

It was further submitted that the analysis period was not representative of a normal competitive situation, as prices and profit margins, according to the industry, were particularly high during these years compared with the average situation in the industry.

Beds with characteristics of the Kozina facies outcrop in the northern margin of Kras, in profiles Dolenja vas and Sopada (Fig. 7), and they are especially well exposed in new road-cuts of the highway at Čebulovica and along the road between Divača and Lokve.

According to determinations by D. Turnšek (Drobne et al., 1988; Pugliese et al., 1995), the corals appear in the northeastern margin of the Trieste-Komen plateau (profile Dolenja vas, Fig. 7) in the Lower Danian already, and they pass across Danian into Thanetian.

It is furthermore a commonly known fact that the Community market of bed linen is indeed highly competitive and that as a result of the numerous players and the open market, profit margins reported by the Pakistani exporting producers could not be regarded as credible.

With regard to the partial verification visit carried out at the premises of the second company, it was found that the pricing policy for sales of bed linen to the Community and to other markets did not differ significantly, and could not result in such strongly different profit margins, as reported by the company.