Friday, April 17, 2015

Strong dollar hit to GE, Honeywell may bode poorly for other industrials

The logo of US conglomerate General Electric is pictured at the company's site in Belfort General Electric Co and Honeywell International Inc said on Friday they will take steps to cushion the impact of a stronger dollar, which hurt first-quarter results at both companies. Indeed, the impact of currency shifts on U.S. companies will be highlighted further next week with quarterly reports from United Technologies Corp , which already slashed its 2015 financial forecast in January over currency worries, as well as from 3M Co and Illinois Tool Works Inc . GE said foreign currency effects shaved $950 million, or 4 percentage points, off its sales in the first quarter. Honeywell also reported a 4-percentage-point quarterly drag from a stronger dollar, and projected that exchange fluctuations would weigh down sales by $1.7 billion this year.








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