12.01.2015 - Currency swings pose challenges for Asian groups
Viewed from the South Korean port of Ulsan, home to the world’s largest shipbuilder Hyundai Heavy Industries, it is jackpot time on the international currency markets. Hyundai derives nearly all its revenues in dollars, a rising currency, while a big chunk of its spending is in weak euros — a sweet equation for its bottom line. Machinations at the Federal Reserve and European Central Bank are reverberating across Asia through the currency markets, and for many companies, the impact is not as benevolent as at Hyundai. Makita, a Japanese power tool maker which generates 40 per cent of its sales in Europe, loses Y600m of operating profit for every Y1 rise against the euro...............................................Full Article: Source
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