European companies are slowly beginning to include an alarm due to a strong euro, after the arrival of Donald Trump, Trump in the White House, significantly strengthened the dollar that creates additional pressure on exporters after the customs issues.
For example, German manufacturer Software SAP, Porsche manufacturer Porsche, then the beer of the company that warned investors in order to experience the effects of a strong euro in the results that came to the highest level in three years.
Strong Euro undermines the competitiveness of European exports and further deteriorates shock caused by customs, says the main economist in Deutsche Bank Robin Winkler.
The HSBC Bank Analysts reduced the growth of profit growth for firms that are part of the FTSE Europe index, that strong euro could significantly affect their salaries abroad.
Although a lot of companies seek to protect against currency risk, however, a longer period of strong euro cannot leave the trace of profit and income.
The main financial director of SAP Dominik Assam said any strengthening of the euro for $ 0.01 reduces their annual revenues by 30m euros, HR. Finance Hr.
Heineken announced that the growth of the euro value compared to other currencies, including Mexican peso, can reduce the annual adapted net profit for 180m euros.
In the case of the manufacturer of electrical equipment from Schneider Electric, the annual revenues may be less than 1.25 billion euros due to the weaker dollar.
For Porsche, North America’s market is the second largest market and its main financial director Jochen Breckner said the consequence of strong euro will certainly feel, the Financial Times reports.
The German company for the production of portational or partially prepared meals HelloFresh is a computer forecast according to a $ 1.04 course for Euro, so the Euro-$ 1.14 course could reduce operating profits for 28 million euros.
Several large banks expect Euro to further strengthen after reaching a record level in April for the last three years of $ 1,157. The currency strategist in Bank of America Athanasios Vamakidis has argued that the value of the euro is additionally pushed by the German government’s economic stimulating measures.
“The market was too optimistic when the word is now and too pessimistic when it comes to Europe,” Vavivakidis said to strengthen the Euro end of $ 1.17.
(Vijesti.ba)
