Currency allocated to earnings of North American companies declines in second quarter
By Caroline Valetkevitch
NEW YORK (Reuters) – The negative impact of currency fluctuations on the results of North American companies decreased in the second quarter of this year compared to the previous quarter, data from the treasury and financial management company showed on Tuesday Kyriba.
The overall exchange rate affected, including on businesses in the United States, Canada and Mexico, was $ 2.32 billion in the second quarter, compared to a negative effect of $ 5.87 billion in the second quarter. first trimester, Kyriba said in a report.
S&P 500 companies begin reporting third quarter 2021 results.
“Supply chain disruption and inflation will test the corporate liquidity strategies of CFOs and treasurers and the application of best practices to protect EPS, drive growth and reduce risk supply chain over the next few months, ”Kyriba’s Wolfgang Koester said in a statement.
Kyriba said 35 North American companies reported currency impacts in the second quarter, up from 77 in the first quarter and 28 in the fourth quarter of 2020.
The US 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 to US currency.
(Reporting by Caroline Valetkevitch; Editing by Bill Berkrot)