More talk of cutting costs as revenues remain weak

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We are in the core of earnings season, and once again this morning's crop of earnings illustrates the very severe "revenue recession" we are experiencing.

DuPont, for example, beat on the top line but revenues were notably light.

Diesel engine maker Cummins also beat on the top line but revenues were notably light.

Truck maker Paccar also beat on the top line but revenues were notably light.

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Global industrial player Textron also beat on the top line but revenues were notably light.

And specialty glass maker Corning also beat on the top line but revenues were light.

Detect a trend?

This is a problem. The is trading at close to 19 times forward earnings with little or no growth. When you have negative revenue growth, that means your margins are under pressure. To keep margins near the record highs we have seen in a negative growth world, you have to keep aggressively cutting costs.