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”
A simple, easy to initiate solution, would be to adopt The WOCU to price day to day treasury operations, improving overall performance by reducing the peaks and troughs of currency movements. Click here to discuss your corporate currency requirements.