Currency hit to North American companies' results dips in Q2

By Kitco News / October 26, 2021 / www.kitco.com / Article Link

NEW YORK, Oct 26 (Reuters) - The negative impact of currency fluctuations on corporate results for North American companies fell in the second quarter of this year from the previous quarter, data from treasury and financial management firm Kyriba showed on Tuesday.

The collective exchange rate hit, including on companies in the United States, Canada and Mexico, was $2.32 billion in the second quarter, compared with a $5.87 billion negative effect in the first quarter, Kyriba said in a report.

S&P 500 (.SPX) companies are beginning to report results on the third quarter of 2021.

"Supply chain disruption and inflation will test CFOs and treasurers' enterprise liquidity strategies and application of best practices to protect EPS, drive growth and reduce supply chain risk in the coming months," Kyriba's Wolfgang Koester said in a statement.

Kyriba said 35 North American companies reported currency impacts in the second quarter, compared with 77 in the first quarter and 28 in the fourth quarter of 2020.

The U.S. dollar index fell 0.9% in the second quarter of this year. It gained 2% in the third quarter.

A stronger dollar makes overseas sales less valuable when converted back into U.S. currency.

Reporting by Caroline Valetkevitch Editing by Bill Berkrot
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Recent News

Monetary-driven precious metals outperform major base metals

September 09, 2024 / www.canadianminingreport.com

Gold stocks hit by plunging equities markets

September 09, 2024 / www.canadianminingreport.com

Gold stocks down as metal and equities momentum fades

September 02, 2024 / www.canadianminingreport.com

Another Kazatomprom guidance announcement shakes uranium price

September 02, 2024 / www.canadianminingreport.com

Major monetary drivers still supporting gold

August 26, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok