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Specialty cable companies achieve high profits, boosting the overall industry profits.

Special cable companies are achieving high profits, boosting the overall industry profits. Although the profits of ordinary wire and cable companies have declined, the average net profit margin in the wire and cable industry is less than 5%, with many manufacturers even below 3%. However, there are still many high-end special cable companies that are obtaining high profits, which raises the overall industry profits. Through the analysis of the corresponding products of the listed companies in the table above: 1. There is a significant difference in gross profit margins among different products; 2. The gross profit margin of special cables is higher than that of ordinary products; 3. Companies with a larger proportion of special cables tend to have higher gross profit margins. The overall profit of the wire and cable industry has declined, but...

2018-03-15

Specialty cable companies achieve high profits, boosting the overall industry profits.

Special cable companies achieve high profits, raising the overall industry profits.

Although the profits of ordinary wire and cable companies have declined, the average net profit margin in the wire and cable industry is less than 5%, with many manufacturers even below 3%. However, there are still many high-end special cable companies that achieve high profits, boosting the overall industry profits.

By analyzing the corresponding products of the listed companies in the table above.

① There is a significant difference in gross profit margins among different products;

② The gross profit margin of special cables is higher than that of ordinary products;

③ Companies with a larger share of special cables tend to have higher gross profit margins.

The decline in profits across the entire wire and cable industry is not significant. The real reason lies in the increasing polarization within the industry, where companies operating high-end special cables have a larger profit gap compared to those dealing with ordinary cables. The profits from ordinary cable businesses are further compressed, while the special cable business has raised the average profit of the industry.

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