Strong dollar, weak guidance: Just look at what United Technologies (UTX) said late last month when it warned of below-consensus results. The helicopter and elevator maker said that while it sees revenue “momentum,” the surging dollar is creating serious headaches.
During a conference call with analysts, United Technologies CEO Gregory Hayes complained about how he “can’t control” foreign-exchange rates. “We’ll do as much as we can to mitigate these headwinds.”
While a stronger greenback (up 9% during the fourth quarter from the year before) is great for Americans traveling abroad, it hurts companies when they translate sales generated overseas back home. That’s a big deal because many major companies make money in other countries.
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