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The
companies that quantified an exchange-rate effect reported a
negative impact totaling $6.81 billion, the smallest for any
quarter since the third quarter of 2014, when the effect was
$4.00 billion, according to FIREapps, a currency risk consulting
firm.
While the firm does not estimate the effect on future results,
U.S. corporate reports on the fourth quarter already are showing
signs of a stronger impact from U.S. dollar strength.
Colgate-Palmolive <CL.N> said on Friday its quarterly sales were
hurt by a strong dollar, and PayPal Holdings <PYPL.O> also said
currency fluctuations hit fourth-quarter results.
The U.S. dollar index <.DXY> rose 7.1 percent in the fourth
quarter, while it was down 0.7 percent in the third quarter of
2016.
The number of North American companies citing a negative impact
from currency fluctuations in the third quarter was 218, below
the prior three quarters' average of 307 companies, the FIREapps
report showed.
U.S. multinationals' foreign currency earnings are worth less in
dollars when the dollar is stronger. Nearly half of U.S. S&P 500
companies' sales come from overseas, according to S&P Dow Jones
Indices data.
(Reporting by Caroline Valetkevitch; Editing by Leslie Adler)
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