KUALA LUMPUR: Currency volatility was responsible for significant impacts on the revenues of US-listed multinational corporations, costing them more than US$11.5 bil in Q3 2019, according to the new Kyriba Currency Impact Report (CIR).
CIR is comprehensive report which details the impact of foreign exchange (FX) among 1,200 companies in North America and Europe.
This is the fifth consecutive quarter of over US$10 bil in losses for North American companies – the longest such stretch in at least a decade, according to a statement.
“Waiting for currency volatility to calm down has been a US$98 bil mistake for CFOs of multinational corporations. CFOs who dismissed this problem as a temporary wave of market drama have unnecessarily cost their shareholders, and need to reconsider their strategy,” said Kyriba chief evangelist Wolfgang Koester.
The average earnings per share (EPS) impact reported by North American companies in 3Q 2019 was US$0.03 – three times greater than the industry standard MBO of less than US$0.01 EPS impact.
For the 11th consecutive quarter, North American companies indicated the euro as the most impactful currency, with 46% of companies mentioning it in their 3Q earnings calls, according to the report.
Medical equipment and supplies and the business services industries experienced the greatest impact from currencies, as these industries continue to be affected by Brexit and other volatile geopolitical events globally. – Jan 22, 2020
