Finance & Business World

A third of companies are in crisis one year on from Lehman Brothers Holdings Inc.’s collapse and most are still cutting costs, a McKinsey & Co. survey found.

“A year after the global economic system nearly collapsed, many companies are finally finding ways to increase profits, but almost as many expect profits to continue falling,” the consulting firm said in an e-mailed report. “Executives also indicate that their broader economic hopes remain fragile.”

Federal Reserve Chairman Ben S. Bernanke said in a speech yesterday that the worst U.S. recession since the 1930s has probably ended, while warning growth may not be strong enough to quickly reduce the jobless rate. Stock markets have rallied and bond spreads have contracted this year amid hopes the global economy is rebounding.

Bonds have returned investors 13 percent this year, according to the Merrill Lynch Global Broad Market corporate bond index. The MSCI World stock index is up 22 percent.

Less than 10 percent of survey respondents expect sales to fall because consumers or businesses can’t get credit, McKinsey found. Just under 50 percent expect higher borrowing costs over the next five years.

China executives are no more likely than those in other countries to predict the start of a global rebound, though are particularly bullish on China’s economic prospects, with 82 percent expecting higher growth this year, McKinsey said.

Concern over trade restrictions has eased in the past six months, the survey said.

The firm said it received responses from 1,677 executives from all regions, industries, and company sizes.

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