A surging dollar and weakness abroad whacked North American corporate profits by an unprecedented amount in the second quarter, foreshadowing an even worse hammering this earnings season.

Currency volatility cost North American companies $34.3 billion in the April-to-June period, the highest loss on record in data going back to 2013, according to Kyriba Corp.

There are already signs that the third-quarter earnings season could be even worse, as the U.S. dollar is expected to remain strong and the risk of a global economic slowdown becomes clearer. The Bloomberg dollar index reached a record high last month.

 

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2022 ALM Global, LLC. All Rights Reserved.