A slew of U.S. multinational companies, from DuPont (DD.N) to Procter & Gamble (PG.N), showed that a strong U.S. dollar hurt their earnings, and several blue-chip exporters said the situation will get worse if the greenback holds its strength.
All told, the resurgent U.S. currency could shave up to $12 billion off U.S. companies' fourth-quarter 2014 revenue alone, according to currency expert Wolfgang Koester, chief executive of FireApps, a data analytics company in Phoenix, Arizona, that examines quarterly reports for currency-related losses.
The pain is hitting multiple sectors, including industrial companies such as 3M Co (MMM.N), technology companies like Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O), airlines such as American Airlines Group Inc (AAL.O), healthcare companies, including Bristol-Myers Squibb Co (BMY.N) and Pfizer Inc (PFE.N), and consumer firms like Procter & Gamble - which all garner a large portion of their sales from outside the United States.
"This is a slow-motion crash," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh. It could take a couple of quarters for currency conversion losses to show up, she said.
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