Kyriba’s October 2022 Currency Impact Report

A Quarterly Report Assessing the Impact of Foreign Exchange to North American and European Corporate Earnings

About the Report

The October 2022 Kyriba Currency Impact Report analyzes the reported effects of currencies to North American and European companies’ earnings during the second quarter of 2022. To obtain this information, Kyriba analyzed the earnings calls of 1,200 publicly traded North American and European companies as part of a continued effort to provide insight into how foreign exchange impacts organizations. The companies included in this data set are large multinational firms doing business in more than one currency with at least 15% of their revenue coming from overseas.

Kyriba Currency Impact Report: Key Findings

• The collective quantified negative impact reported by both North American and European companies totaled $37.27 billion in Q2 2022, a 126% increase from Q1 2022.
• 24% of corporates studied (284/1200) quantified +/- impacts totaling $49.09 billion ($37.27 billion headwinds), ($11.82 billion tailwinds).
• The Russian ruble was the currency most mentioned as impactful by North American companies, as third most by European companies.
• 243 North American and European companies reported currency headwinds in Q2 2022. Of those companies, 229 companies quantified their FX impacts.

Currency Impact on North American Corporate Earnings

North American companies reported a $34.25 billion impact in Q2 2022, 133% larger than the impact in Q1 2022.¹

The average earnings per share (EPS) impact reported by North American companies in Q2 2022 was $0.10, ten times greater than the industry standard MBO of less than $0.01 EPS impact and the highest spike in average EPS recorded by this report.

¹ Impacts are likely underestimates as most companies with currency headwinds generally do not report them.

The ruble was the most mentioned currency, a continuation from the prior quarter. The Canadian dollar was the second most-mentioned, followed by the euro, the Australian dollar, and the yen. The euro was the most volatile currency weighted by GDP (page 6).

In Q2 2022 earnings calls, 8 percent of North American companies that reported impacts fielded analyst questions.

Increasing from last quarter, European companies reported an 68% percent increase in negative currency impacts, with companies reporting $3.02 billion in FX-related losses.²

Of the 350 Europe-based multinationals analyzed, 2.3% reported headwinds in Q2 2022. Of those, 100% quantified their negative impacts (see page 15).

² Impacts are likely underestimates as most companies with currency headwinds generally do not report them.

The euro was the most mentioned currency in earnings calls for Europe, followed by the US dollar and ruble. The krona was the fourth most mentioned, followed by the pound. The ruble was the most volatile currency as well as most mentioned in North American earnings calls (page 6).

In Q2 2022 earnings calls, 5 percent of European companies that reported impacts fielded analyst questions.