Dow 30 Companies See Slowdown in Revenue Growth from Europe in Q2’12
Europe was a focus of the market during the past few days, as the ECB announced its most recent plan to resolve the financial crisis that has engulfed the continent in recent years. As a result, the DJIA recorded a large increase (to 13292.00 from 13090.84) over the past week.
While the markets expressed optimism over the new plan, companies have continued to face challenging conditions in Europe. At this point in time, all 30 companies in the DJIA have now reported earnings results for Q2 2012.
Many companies in the DJIA specifically commented on the difficult conditions they faced in Europe during the quarter in either their earnings release or conference call. In terms of revenue growth from Europe, what did these companies report for numbers for the second quarter? How did the numbers for Q2 2012 compare to prior quarters?
Overall, eleven of the 30 companies in the DJIA provided revenue growth numbers for Europe. Of these eleven companies, eight reported a year-over-year decline in revenues from Europe. Three of these eight companies reported double-digit declines.
Ten of the eleven companies recorded a second consecutive quarter of declines in year-over-year revenue growth in Europe as well. HP was the only company that witnessed an improvement in year-over-year revenue growth in Q2 2012 compared to Q1 2012 (-4% compared to -7%), though the company still reported a year-over-year decline for the quarter (-4%).
Based on these numbers, it appears that companies are continuing to see conditions getting worse in Europe in terms of generating revenue growth.