CFO Studio Magazine - Curt Allen, CFO, Subaru

But business is a cycle, so it’s bound to recover. “Other Asian economies are a mixed bag, but Australia may be at or near the bottom.” Europe, too, is at or near the bottom, he says, and perhaps beginning to improve selectively. Meanwhile, “the U.S. appears to be recovering at a glacially slow pace. “All in all,” says Rothman, “I kind of like our chances in 2015.” Health Care Consumers’ spending on health care is highly dependent on jobs numbers, says Guinan. Though employment numbers are improving, Quest sees headwinds from moves to redesign benefit plans into high- deductible plans — leading consumers to make discretionary decisions on going to doctors and getting tests done. On the other hand, the Affordable Care Act is moving large numbers of previously uninsured individuals into the system, which will benefit Quest. Huber at Horizon Blue Cross Blue Shield also sees both harm and benefit from these trends. “In our industry, we’re just going through an unbelievable amount of change,” he says. The downside: “Margins are really being squeezed significantly, and we’re a low- margin business to begin with.” By investing in technology and working to improve processes, Huber says, the organization will “tackle the issue of costs.” Horizon’s growth opportunity is in Medicaid and Medicare, which are expanding considerably. Quest’s lies in buying “small, tuck-in laboratories and regional laboratories,” which Guinan believes will add about 1 to 2 percent topline growth annually. Quest’s organic growth will come from improved competitiveness: better tools for the sales force, for example, and tests that provide higher value for patients (an example is a test panel that looks for a genetic anomaly associated with certain solid tumors). Chocolates & Cars Consumers disappointed retailers over Black Friday weekend, but Godiva hit its numbers, says Marberger.The big question is: How strong is consumer confidence? Generally, the company sees reason for optimism, and is “investing for growth, and very optimistic about our business in Asia.” The risk Marberger is watching is the price of cocoa, which can be impacted by a bad crop, speculation in the market, or significant demand coming out of Asia, where buying patterns are less predicable than in more mature markets. “We feel optimistic that prices [of cocoa] relative to 2014 levels will come down, which is good news.” For automobiles, the key number is the seasonally adjusted annual (selling) rate (SAAR), which has continued to grow for three years, says Henn of Mercedes-Benz. “We expect further year-over-year industry growth in 2015, maybe a little less, but still growth.” He says there is a slight concern that the market might be overheating because of low interest rates coupled with low gas prices, and if the government adjusts interest rates mid- year, as some Fed watchers predict, that could have some impact on automotive leasing and financing. But overall, 2015 looks “very promising.” 14 WWW.CFOSTUDIO.COM 1st QUARTER 2015 2015 PLANNING “GODIVA IS INVESTING FOR GROWTH, AND VERY OPTIMISTIC ABOUT OUR BUSINESS IN ASIA.” — DAVID MARBERGER, GODIVA CHOCOLATIER Brian Friedman, New York Jets Irv Rothman, HP Financial Services