Tuesday, 27 January 2015

Apple CFO Sees Sales Growth as Hedges Ease Currency Swings

Apple Inc., which has already taken its most aggressive steps in years to blunt the effects of currency swings on revenue, said sales will keep growing this quarter even with the strengthening U.S. dollar.
“We’re guiding to a strong March quarter with revenue up between 14 and 20 percent and that’s in spite of the fact that you’ve heard from many U.S. companies these days that foreign exchange has become a challenge,” Chief Financial Officer Luca Maestri said Tuesday in an interview.
The dollar’s surge is reducing earnings at U.S. companies from Procter & Gamble Co. to Pfizer Inc. and DuPont Co. that make a large portion of their sales abroad. Apple, which got more than half its revenue in the most recent fiscal year from outside the U.S., has benefited from hedging and raised prices on iPhones in Russia and mobile software applications from Canada to Europe. The higher local prices help compensate when the revenue is converted back into dollars.
Apple’s shares rose in extended trading after it reported profit and revenue that exceeded analysts’ average estimates for the quarter ended Dec. 27, fueled by a 46 percent surge in iPhone shipments to 74.5 million units.
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