windfall profit


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Windfall profit

A sudden unexpected profit uncontrolled by the profiting party.

Windfall

A sudden, unexpected profit or gain. A windfall may occur, for example, after a company announces an earnings surprise and its stock consequently jumps significantly. Companies may also experience windfall when demand for their products skyrockets; for example, an umbrella manufacturer may see windfall during an especially rainy year. See also: Windfall shares, Windfall tax.

windfall profit

an exceptional gain or PROFIT arising from a sudden and unexpected change in market conditions which serves to raise the price of a FINANCIAL SECURITY, FIXED ASSET or STOCK.
References in periodicals archive ?
Second, it measures ability-to-pay in terms of windfall profit, the amount of yearly gain in shareholders' wealth after deducting the return that compensates shareholders' for a normal investment return.
The six firms are expected to contribute their windfall profits to a special fund for securities-related research and public relations operations, the sources said.
The strong pound - which BMW blames for the 'car-boot sale' of Rover is giving the German car maker windfall profits of at least pounds 300 million a year, it was claimed yesterday.
Aside from the aforementioned royalties, a windfall profits tax of 1 to 10 percent would also be imposed on a sliding scale on margins exceeding 35 percent.
The proposal included the following tax provisions: (1) four percent excise tax, (2) five percent of gross revenues on nickel mining, (3) two percent royalty based on income for open-pit mining of copper, gold and other metallics, (4) one percent tax on income for underground mining, and (5) the windfall profits tax.
Hence, in this way, he misused his authority, aided and abetted while acting in conspiracy with his co-accused Kamran Ali remained Member (Legal) Ministry of Information Technology and Telecom in the grant of undue and illegal benefit to the Long Distance and International (LDI) Companies, which earned them windfall profits as a result of the ICH Policy processed by the accused.
In FY16, some companies gave special commissions in addition to sitting fees and regular commissions because of windfall profits, which were absent in FY17.
Japan's Exporters reaped windfall profits over the past few years as government efforts to kick start the world's number three Economy sharply weakened the yen.
Japan's exporters used to reap windfall profits over the past few years as government efforts to crank up the world's third-largest economy sharply weakened the yen.
This loophole has resulted in windfall profits and a de facto production subsidy for highly carbon-intensive clinker."
And Tata Steel has received hundreds of millions of pounds in windfall profits from an EU-wide scheme to cut greenhouse gas emissions, analysts say.
However, in its arguments, the lenders said that even though they believe CW's figures are wrong, they still stand to "reap windfall profits regardless of how the interest rate is calculated on the senior loan."