FiREapps quarterly report on negative currency on MNCs* in Europe and North America that reported FX impacts in earnings calls for 2Q 2018 showed that:
- North American companies negative FX loses increased to $1.02 billion, a 2,657% increase from the previous quarter
- European companies negative FX loses declined by 58% to 22.89 bn, but this was still the 2nd highest reported quarterly loss.
Other findings included:
- Top 5 volatile G20 currencies:
- Top 5 Volatile Currencies as Weighted by GDP Percentage:
- EUR was most impactful currency for North American AND European companies
- 123 North American and European companies reported currency headwinds in Q2 2018. Of those companies, 70 quantified FX impacts.
- There was a 150 percent increase in the number of North American companies reporting negative currency impacts in Q2 2018.
- As negative impacts to European companies remain higher than previous years, the number of companies reporting impacts increased, but the number of companies quantifying negative impacts has decreased.
* The companies included in the research are large multinational firms doing business in more than one currency with at least 15 percent of their revenue coming from overseas.
CTMfile take: negative FX currency impact continues to be a major problem for many companies.
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