In the fourth quarter of 2014 the total reported negative currency impact was $20.18 billion (North American + European combined). All told for the full year 2014, North American and European corporates lost $39.54 billion in revenue.
In Q4 North American corporates faced the largest currency headwinds since the height of the euro crisis with $18.66 billion in revenue eroded from North American corporate earnings statements by currency surprises.
The Q4 and full year 2014 stats in the currency report cover everything from the top 5 currencies impacting North American and European corporate earnings to the percent of companies taking questions from analysts about currency impact. Get your free copy of the in depth currency report here.
3 Facts you will know after your read:
1 For the full year (2014), North American & European corporates lost a combined $39.54 billion
- North American companies reported $27.13 billion in total negative currency impact for 2014 –a 53 percent increase over 2013 ($17.78 BN).
- European companies reported $12.41 billion in negative currency impact for 2014 and $1.52 BN in Q4.
This quarter many corporates who never before reported a currency hit, reported one. Additionally, there was a significant increase in the volume and complexity of questions coming from the analysts and the market, many of which indicate(d) a systematic inability to identify and quantify exposure.
2 The percentage of companies fielding analyst questions about currency rose to all time highs
- 63% of North American companies and 68% of European companies reporting currency impact fielded currency impact-related questions from analysts
3 On the top and bottom line, Q4 was one of the most impacted quarters since we have seen since we began this research (2011)
- Q4 impact to earnings per share (EPS) in North America averaged $.06—almost 2x the 2013-2014 average
- It is more than six times the less than $.01 EPS impact management objective that leading multinationals have set for their FX managers
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