Dollar recovery boosts UK firms
Sunday 20 August 1995
UK plc would see its annual profits of pounds 60bn soar by nearly pounds 5bn if the dollar made the same progress against the pound that it has made against the Japanese yen over the past five months.
However, the impact of the dollar on translation of profits from US subsidiaries, exports and trade done in dollars will be offset by any dollar-based raw material purchases. And any gains that the pound makes against European currencies will erode the profits of companies that have business there, especially if they source their raw materials in dollars.
Clear winners are oil companies such as Enterprise, Lasmo, and Premier, which sell all their products in dollars, but meet their costs in other currencies. Other companies singled out by the stock market over the past week have been Hanson (46 per cent of profits in dollars), Siebe (52), BAT(36), Glaxo Wellcome (43) and Williams (48).
There are other big winners, too. According to broker Kleinwort Benson, which monitors big companies' dollar earnings, at least 12 British companies in sectors such as drugs, advertising, food, chemicals and insurance broking do more than half their business in dollars (see table).
- 1 Lucy Hawking: Stephen Hawking's daughter writes impassioned open letter to Katie Hopkins about rights of disabled people
- 2 #NotGuilty: Second Oxford student writes of brutal rape by two men who then threw her in a bin as part of campaign against victim blaming
- 3 How the language you speak changes your view of the world
- 4 Russell Brand backs Ed Miliband: 'You gotta vote Labour'
- 5 Uploading pictures to find out how old you are gives Microsoft the right to post them wherever they want
Lucy Hawking: Stephen Hawking's daughter writes impassioned open letter to Katie Hopkins about rights of disabled people
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...