Nordic Industrials flag FX bruises as dollar dents Q2 profits
At first glance, activity levels remained healthy, but a weaker U.S. dollar impacted companies this quarter, chipping away at profits even for companies with solid order books and global footprints.
Shares in Epiroc (EPIRa.ST), opens new tab dropped 5.5%, hitting the bottom of the pan-European STOXX 600 (.STOXX), opens new tab index on Friday, after the mining equipment maker missed expectations. Weak demand and pressure on its construction unit outweighed efforts by the company to improve efficiency.
Miner Boliden (BOL.ST), opens new tab also saw its earnings fall short of expectations, as the weakening U.S. dollar had a greater impact than anticipated.
Boliden's results served as a stark reminder of how much the dollar matters in export-heavy Scandinavia.
Metals sold by the Swedish miner are priced in U.S. dollars, which means that when the dollar is weak the sales value of its products falls when converted back into Swedish crowns.
While demand for minerals and industrial components is still high, companies like SKF (SKFb.ST), opens new tab and Trelleborg (TRELb.ST), opens new tab say that more clients are holding off on non-essential purchases or phasing out investments due to the tariff uncertainty.
SKF beat estimates this quarter, but noted a currency headwind impacting earnings.
Atlas Copco (ATCOa.ST), opens new tab reported a lower order intake due to a negative currency effect. Its shares fell nearly 10% on Friday, marking their worst day of trading in nine years.
Trelleborg missed market forecasts for second-quarter core earnings on Thursday. It warned U.S. President Donald Trump's trade war was making customers cautious about placing new orders.
Companies' profit margins are so far holding firm, largely due to efforts to save money, keep prices higher and cut jobs, but its uncertain how long those efficiency drives will work as foreign exchange and cost rises eat into profits, analysts say.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
41 minutes ago
- Reuters
South Korea seeks mutually agreeable U.S. trade package
SEOUL, July 26 (Reuters) - South Korea will prepare a trade package that is mutually agreeable with the United States ahead of minister-level meetings planned next week and a U.S. tariff-pause deadline of August 1, the presidential office said on Saturday. The package will include shipbuilding cooperation, a sector of high interest to U.S. Commerce Secretary Howard Lutnick, who discussed the matter with South Korea's Industry Minister Kim Jung-kwan on Friday, it said in a statement. Friday's meeting was a follow-up to a meeting on Thursday, where Lutnick and Kim reaffirmed their commitment to reach a trade deal by August 1, after a joint meeting of finance ministers and top trade envoys that had been scheduled for Friday was postponed. South Korea, facing 25% tariffs, is rushing to reach a trade deal with Washington, with National Security Adviser Wi Sung-lac visiting the U.S. recently for high-level talks and Minister for Trade Yeo Han-koo also in the U.S. for negotiations, as pressure grows on officials to clinch a deal that is no worse than Japan's that cut tariffs to 15%. South Korea's trade negotiations with the U.S. have included non-tariff barriers in the agricultural and digital service sectors, but foreign exchange has not been part of trade talks beyond usual consultations, according to South Korean officials. U.S. President Donald Trump arrived in Scotland on Friday for bilateral talks with European Commission President Ursula von der Leyen on Sunday, which could yield a trade deal with the European Union, after making a deal earlier this week with Japan and the Philippines. Next week, U.S. officials will hold a new round of trade talks with China in Sweden for an extension to a separate deadline of August 12 set between the two countries. South Korea's Finance Minister Koo Yun-cheol and Foreign Minister Cho Hyun will also hold meetings with U.S. Treasury Secretary Scott Bessent and State Secretary Marco Rubio, respectively, next week.
Telegraph
an hour ago
- Telegraph
The alternatives to Amex that offer better rewards
American Express (Amex) is synonymous with credit card spending but it's also known for its deals that offer generous cashback, points-based rewards and exclusive perks including priority access to gigs, film screenings and theatre shows. But while these rewards can be appealing, Amex isn't always the best option. While acceptance has improved over the last few years, Amex cards are still not accepted by all retailers. If your aim is to earn reward points or cashback, this will be hindered if some of your favourite places to spend don't accept your card. There can also be incredibly high repayment rates and fees – with the Amex Platinum card charging 691.7pc APR variable, along with £650 a year in annual fees. This means there are more eligibility criteria to fulfil than with other credit cards. For example, you'll usually need a good or excellent credit rating, and some cards will also have a minimum income requirement – in the case of Amex Platinum, you must earn at least £35,000 and have 'no history of bad debt'. With that in mind, Telegraph Money looks at some of the best alternatives to Amex, depending on what you value most from your card – whether it's cashback, rewards, low-cost borrowing or fee-free spending abroad. Best for rewards Some Amex credit cards enable you to earn Avios points that can be redeemed on British Airways flights and holidays. Others let you earn reward points to be spent at certain retailers such as Amazon and Boots, while several Amex cards give you access to pre-sale tickets and exclusive benefits for gigs and theatre visits. Here are some popular alternatives to these cards, depending on what's most useful to you: Virgin Atlantic Reward credit card: flight rewards The Virgin Atlantic Reward credit card gives you 0.75 Virgin Points for every £1 spent on everyday purchases and 1.5 Virgin Points for every £1 spent with Virgin Atlantic or Virgin Holidays. What's more, if you spend on your card within the first 90 days, you'll earn 3,000 bonus points. Points can be redeemed on Virgin Atlantic Flights, hotels and travel extras such as airport parking. The card has a representative APR of 26.9pc (variable). Alternatively, you can pay £160 a year to upgrade to the Reward+ version of the card and earn 18,000 bonus points when you make your first purchase in the first 90 days. You also earn 1.5 Virgin Points for every £1 spent on everyday purchases and three Points for every £1 spent with Virgin Atlantic or Virgin Holidays. Head for Points, a consumer website that pits the top credit cards against each other, notes this is 'exceptionally good'. According to the provider's website, Virgin Points 'never expire'. At the time of writing, you'd need to have earned 20,000 of them to buy a return economy flight from London Heathrow to New York's JFK airport in off-peak September. Barclaycard Avios credit card: flight rewards and exclusive events You can collect 1 Avios for every £1 spent on eligible purchases with the Barclaycard Avios card, plus 5,000 bonus Avios if you spend £1,000 in the first three months. There's a representative APR of 29.9pc. Alternatively, upgrade to the Plus version of the card for £20 a month and earn 1.5 Avios for every £1 spent, plus 25,000 Avios if you spend £3,000 in the first three months. You also benefit from discounted airport lounge access. However, the representative APR jumps to 80.1pc APR for this option. According to Barclaycard, you can get a peak economy return flight from London to Milan for 19,500 Avios plus £1. In addition, becoming a Barclaycard customer gives you the opportunity to take advantage of entertainment perks, including exclusive tickets to live performances and events.
Daily Mail
2 hours ago
- Daily Mail
The Lionesses are on the brink of glory at the Euros... and so is their market value! Brand expert reveals how women's team are entering their 'influencer' era - and the one thing the men's team MUST learn from them
Should the Lionesses beat Spain in the Euros final on Sunday, they won't just be bringing football home, they'll be opening the door to a commercial future once thought to be intangible for the women's game. Their 2022 Euros triumph broke many preconceptions of what is achievable in the sport, and the top tier of women's football is fast becoming a goldmine for brands seeking authenticity, relatability and reach. The Lioness stars have become more than just athletes. They are style icons, social trailblazers and marketable personalities with growing influence that's not gone unnoticed by big player brands. 'They're doing more outside the sport than the men's team ever have,' says Hayley Knight, Co-Founder and Director of Comms for BE YELLOW, a leading PR and Media Relations Agency. 'They're more human. They're more accessible. They're pushing for equal access in sport for schools and they're influencing policy. 'And the one wonderful thing about the Lionesses in particular and this particular team is that there's no scandal, they're very open and honest. There's LGBT representation. It's very diverse. 'So there are a lot more brands that can invest and there's a lot more brand trust that they can hook onto. And the contracts will be longer because of that. 'Plus they have access to social media and influencer marketing in a way that previous teams and the men's team have never had access to.' Lucy Bronze's on-field heroics and social media visibility have landed her lucrative endorsements with the likes of VISA, Spotify, and recently, Rexona, that have seen her rake in the big bucks, amassing a whopping £3.5m net worth. Fashion house Gucci swooped up the ascendant Leah Williamson as a brand ambassador – and along with other deals with big players like Nike and Pepsi – the England captain has a staggering £4m net worth. And they're not the only millionaires in the squad - Chloe Kelly, Lauren James, and Alessia Russo can all boast at least six-figure values from their deals with industry giants like Calvin Klein, Google Pixel and Adidas, to add to their wages. Growing viewerships have seen the Lioness stars begin to bridge the chasm to the men's when it comes to earning away from the pitch, but that's not the only magnet for advertisers. 'They have different audiences, and more diverse audiences, than the men's teams,' Knight explains. 'They also have access to the women and girls market, which is a very underserved demographic, especially in sports. And that can be incredibly valuable to brands in order to help target them. Williamson, pictured stripping down to her underwear while modelling for Calvin Klein, has a staggering £4m net worth - thanks to sponsorship deals with big players like Nike and Pepsi 'A lot of brands' main focus is on Gen Z and the younger audience, and the Lionesses will allow them to access that.' With further Euro glory on the horizon, the already burgeoning market for England's female football stars could find a second, third, even fourth, wind in the coming years. 'I think over the next 12 to 24 months, merchandising growth could lead to about a £10 to 20m increase,' predicts Knight. 'I'd say we'll see about a 20 to 30% increase across endorsement deals. If the players go above and beyond the sport, they're probably looking to make about £20,000 to £60,000 per sponsored post. 'I think they could even exceed a 50% increase over the next few years.' Those endorsement premiums will almost certainly bleed into the salaries seen in the Women's Super League. At present, Chelsea forward Sam Kerr is reportedly the highest earner in the league, taking home a considerable £400k a year. That dwarfs the average annual salary of women footballers globally per FIFA's annual report, a measly £8k per year, which increases just under £18k when only the 41 clubs designated as Tier 1 are taken into account. Spain superstar Ainata Bonmati broke records last year by coming the first women's footballer to earn a salary of €1m a year (around £835k) - a record broken in the men's game in 1979 Still, even a superstar like Kerr would have to work roughly 385 years to make what Cristiano Ronaldo does in one – the Portuguese legend snaps up an unconscionable £153.5m a year in his new Al Nassr contract. Ainata Bonmati broke records last year by coming the first women's footballer to earn a salary of €1m a year (around £835k) - as a point of comparison, Trevor Francis became the first men's footballer to earn £1m when he joined Nottingham Forest in 1979 – 46 years ago. 'I don't think the ceiling will ever be as high as men's sports, unfortunately, and I hate to say that. But I think that the women will swiftly increase and bridge the gap. 'There's more growth potential for the Lionesses. 'I think [Switzerland star] Alisha Lehman is a really interesting example. She's positioning herself as an Instagram influencer beyond a top level player. And she's not just influencing football, she's also getting brand deals for fashion and beauty and lifestyle. And I think that we've only really seen that in the past with big fashion advertising campaigns for the likes of Beckham. But these women that already have that platform and work as influencers, become a lot more accessible to smaller brands.' The nation will be behind the Lionesses on Sunday, as they look to add to their growing trophy cabinet, but even if they don't succeed, Knight reckons their commercial value won't diminish.
