Telefonica leads Latin Trade's second quarter MNC ranking. Photo: ecemaml/Wikimedia Commons
Three companies defy region’s adversities
by David Ramirez
Latin Trade’s Multinational Companies (MNCs) index, which measures the US dollar-revenue of the top 25 MNCs operating in Latin America, fell again in the second quarter.
Following a 13 percent contraction in January-March, the index dropped 16 percent in April-June (both figures year on year), as the total revenues of the 25 MNCs composing the list dropped to $47.7 billion.
Just like other firms operating in Latin America, multinational companies’ revenue has been dragged down by more hostile macroeconomic conditions, including waning household consumption and sharp US dollar appreciation.
Out of 25 MNCs ranked, 22 show lower revenue in the quarter, with automotives firms the top underperformers. The revenues of Volkswagen (Germany), Fiat (Italy) and Ford (US) plunged by around 30 percent each, partly driven by faltering car sales in Brazil (24 percent down year on year in January-September) and other key markets, such as Argentina and Chile.
Groupe Casino (France) was another top underperformer in the ranking, with revenue plummeting 29 percent in April-June. Exchange rate effects aside, this owed principally to lower sales of electronics in Brazil, which offset higher food sales throughout the region. Similar factors, plus lower gasoline sales, affected the revenues of another MNC retailer, Carrefour, which dropped 12 percent over the period.
The hit to MNCs operating in Brazil also …
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