FiREapps Q1 Currency Impact Report Shows a Pattern of Decreasing Negative Impact
$6.7 Billion in Negative Currency Impacts Reported
(SCOTTSDALE, Ariz.) – FiREapps' release of its Q1 2017 Currency Impact Report depicts a loss of $6.7 billion to currency impact by North American and European companies.
FiREapps analyzes the earnings calls of more than 1,200 publicly traded North American and European companies each quarter to collect data on the negative impact and volatility of various currencies. The FiREapps Q1 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 corporates.
Of corporations quantifying impact, 126 North American multinationals reported $6.47 billion in collective negative currency impacts and five European multinationals reported a collective loss of $230 million in negative currency impacts.
The low volatility depicted in Q1 2017 is a continuation of what we have seen over the previous three quarters. However, a bout of low volatility does not mean corporations can ignore their FX exposures.
Knowing low currency volatility does not last forever, corporate CFOs and treasurers would be wise to look at historical negative currency impacts to help guide their currency management decisions. Companies that have a history of being near the average impacts are at risk of repeat performances when the next period of high volatility occurs.
In Q4 2014 and Q1 2015 North American Corporates experienced a spike in volatility. These two high volatility quarters came as a surprise after eight straight quarters of low volatility from Q4 2012 to Q3 2014. Corporations reported a combined $47.6 billion in sustained negative currency impacts in Q4 2014 and Q1 2015, far greater than the collective $30.44 billion they sustained over the previous eight quarters combined.
FiREapps has been working with multinationals for nearly 20 years, helping them better analyze and mitigate risk in order to limit the negative impact of currency to $0.01 EPS or less. Managing the impacts of foreign currency fluctuations does not need to be difficult with the help of technology that can access accurate and timely data to provide visibility into currency exposures.
For media inquiries please contact Angie Schuster at +1 (480) 443-7333 Ext. 166 or by email at ASchuster@FiREapps.com.
FiREapps is the leading provider of Corporate Currency Analytics and FX exposure management technologies. Established in 2005, FiREapps developed the first solution to automate foreign exchange exposure management for multinational companies. Through a combination of software solutions and expert analysis, FiREapps helps companies ensure they’re accurately measuring and managing their FX exposures. Numerous Fortune 500 companies rely on FiREapps technology to help them reduce FX risk and increase efficiency every day.
FiREapps is headquartered in Scottsdale, Arizona, with offices in Portland, London and Frankfurt.
For more information, visit www.fireapps.com or call +1 866-928-FIRE (3473).