Largest European Foreign Exchange Impact Seen Since 2015 | Global Trade Magazine
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  March 13th, 2018 | Written by

Largest European Foreign Exchange Impact Seen Since 2015

FiREapps Q3 Report Shows $4.27 Billion in Negative Currency Impacts for European Companies

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  • Europe saw an increase in negative foreign exchange impacts and in the number of companies reporting impacts.
  • North American and European companies reported a collective $5.27 billion in FX losses for the quarter.
  • The third quarter of 2017 saw decreasing FX impacts for North American corporations.

The release of the Q3 2017 FiREapps Currency Impact Report(CIR) depicts a loss of $4.27 billion due to currency impacts by European companies—the largest reported impact since the third quarter of 2015.

Europe saw an increase not only in negative quantified foreign exchange (FX) impacts but also in the number of companies reporting impact.

North American and European companies reported a collective $5.27 billion in losses for the quarter, with 26 North American multinationals quantifying $1.01 billion in FX impacts and 26 European multinationals quantifying a loss of $4.27 billion.

The third quarter of 2017 saw decreasing quantified impacts for North American corporations, with a dramatic decline in the number of companies reporting negative currency impacts as well—68 in Q3 2017 as compared to 220 in Q2 2017. Earnings per share (EPS) impact reported by North American companies was at $0.03 and has continued to hover around the $0.03-$0.04 mark over the past five quarters.

Each quarter, FiREapps analyzes the earnings calls of more than 1,200 publicly traded North American and European companies to collect data on the negative impact and volatility of various currencies. The FiREapps Q2 2017 Currency Impact Report can be used as a benchmarking tool for corporate boards and CFOs to gauge their company’s currency impacts in comparison to other multinational corporations.

The report is available for download here.

FiREapps, established in 2005,  provides corporate currency analytics and FX exposure management technologies. Through a combination of software solutions and expert analysis, FiREapps helps companies ensure that they are accurately measuring and managing their FX exposures. FiREapps is headquartered in Scottsdale, Arizona, and has offices in Portland, London and Frankfurt.


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