Financial TimesFinancial Times

The strong dollar wipes billions off US corporate earnings

By Eric Platt, Kate Duguid

25 Jul 2022 · 4 min read

Editor's Note

FT explains how a strong US Dollar is adversely impacting companies with global operations, especially Big Tech giants.

Currency’s surge to highest level in 20 years is taking a toll on businesses with global operationsThe strong dollar has wiped billions of dollars off the second-quarter sales of US companies, prompting many to cut their guidance for the remainder of the year.

The list of bellwethers stomaching multi million- or billion-dollar hits has grown by the day after the US currency surged to its highest level in 20 years this month, including IBM, Netflix, Johnson & Johnson and Philip Morris. That group is expected to swell as titans of the technology industry such as Apple and Microsoft — which generate a substantial portion of their business outside of the US — release quarterly results in the coming days.

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