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Total negative currency impact rose more than
four-fold in the fourth quarter from the previous quarter, and
was the biggest since the height of the euro crisis, according
to the report.
FiREapps analyzes currency effects on quarterly earnings of 846
North American companies, a subset of the Fortune 2000 companies
that generate at least 15 percent of international revenue in
two or more currencies. (http://bit.ly/1O1vOgS)
Earnings per share of North American corporates were hurt by
$0.06 on an average, nearly double the 2013-2014 average and the
highest since FiREapps began measuring the impact of currency
swings.
A slew of U.S. multinational companies, from DuPont to
Procter & Gamble, have showed that a strong U.S. dollar hurt
their earnings, and several blue-chip exporters said the
situation will get worse if the greenback holds its strength.
The number of companies reporting a negative impact was 6.4
percent higher in the fourth quarter than in the third quarter,
according to FiREapps.
A strong U.S. dollar is hurting multiple sectors, including
industrial companies such as 3M Co, technology companies like
Microsoft Corp and Apple Inc, airlines such as American Airlines
Group Inc, healthcare companies, including Bristol-Myers Squibb
Co and Pfizer Inc, and consumer firms like Procter & Gamble -
which all garner a large portion of their sales from outside the
United States.
(Reporting by Kanika Sikka and Shivam Srivastava in Bengaluru;
Editing by Anupama Dwivedi)
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