A surging US currency has hit the country’s largest companies like PepsiCo and Google, shaving off more than $20 billion from their 2015 first quarter sales.
General Motors, IBM, Procter & Gamble, Amazon and Johnson & Johnson have experienced $1billion plus haircuts on sales as they translated revenues earned abroad into US dollar terms, the Financial Times reported on Sunday. The world’s most valuable company Apple is to report earnings on Monday and warned in January that the currency move could slice more than $2 billion from its quarterly revenues. This is after the company posted the biggest quarterly earnings in corporate history of $18 billion in the quarter to December last year, surpassing Wall Street’s most optimistic expectations.
For companies that do a large part of their business overseas, a strong dollar means lower sales when the money is back from a country with a weaker currency.