Thursday, July 29, 2010

Global Companies' Earnings: Significantly Boosted By Brazil and Emerging Markets

Brazil and a few other emerging countries like are lifting the quarterly results of big global companies.

On Thursday, Santander, Telefónica, BAT (British American Tobacco), Procter & Gamble, Avon and Bunge reported that thanks to countries like Brazil they had the chance to increase profits or prevent their fall.

In the case of Avon, Brazil ended up having a central role: the company's sales rose 33% in the country, helping to offset the 6% fall in North America, reported the Wall Street Journal's website. The curious case of the Avon is the largest emerging country, China, this time did not help the company. Sales in the Asian nation plunged 32%. In Europe, sales rose 10%, but was driven by an emerging country, Russia.

Brazil has also helped Bunge (BG), but in a different way. The sale of the Brazilian fertilizer unit allowed it a sixfold profit jump, from U.S. $ 313 million in the second quarter of last year to $ 1.78 billion.

The Financial Times reported that Telefonica's profit rose more than expected. The rise of 9.4% was supported by operations outside of Spain. While sales increased by over 10% in Latin America, in Spain they fell 4.5%. The importance for Telefonica in Brazil tends to increase, now that the company alone controls mobile operator Vivo. The country will be responsible for one fifth of the revenues of the Spanish group, notes the Financial Times.

BAT, in turn, said its sales are being sustained by strong countries in the area of commodities: Brazil, South Africa, Canada, Australia and Russia.

Santander increased profist by 9% in Brazil, which relieved its global poor result, a drop of 8%.

Also on Thursday, the London Daily published a declaration of a director of Procter & Gamble, Marc Pritchard, on the Olympics in Brazil, 2014 and the Winter Games in Russia, the same year: "We definitely intend to use these events to boost our emerging markets ".

With news from Agencia Estado.

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics