Corporate Earnings & the WOCU
Earnings season is well under way and in the past 2 weeks we have witnessed some staggering foreign exchange impairments due to continued volatility. Examples are:
- IBM : Lower profits due to FX convergence in excess of US$ 500 mln
- Pepsico : Bottom line hit by US$ 227 FX transaction charges
- Alcoa : CEO on record stating that “the biggest threat to future [Alcoa] earnings is FX volatility not competition”