Analysts said earnings improvement came from keeping down expenses and a lower tax rate.

There's a lot of pressure on them to show substantial earnings improvement, starting with the first quarter.

The company said the earnings improvement was due mainly to reduced financial expense during part of the year and a lower effective income tax rate.

"Those companies don't have to rely on top-line growth for earnings improvement."

Much of the earnings improvement has come from the commercial aircraft business.

He said the earnings improvement needed to justify current prices was unlikely before late 1992.

So it's very important that we begin to see earnings improvement come through.

Here's the rub: earnings improvement may not translate into better stock performance.

"We're disappointed that we didn't translate respectable revenue growth into earnings improvement."

But the rate cut increased optimism in the stock market that British companies would see an earnings improvement.