The more I read about these multinationals and how many now have 55-70% sales outside the US, the more I realize the US can go into a multi decade tail spin and the multinationals won't care one bit... sort of ironic.
McDonald's (MCD) first; they beat by 11 cents but 5 of that was currency - still its a 6 cent beat... I continue to believe this is a trade down play along with Walmart (WMT) BUT they still are going to be hit with commodity costs (I can't believe I can get a McChicken for $1!), and if the economic fallout is truly bad down the road, even they won't be immune. But so far so good. (Note I own Ultrashort Consumer Services (SCC) which holds McDonald's and Walmart as its top 2 positions, but that is out of necessity as I cannot short individual names - I'd prefer to short individual retailers and restaurants and avoid the "big 2" which should be relative winners in the coming/current recession)
- McDonald's Corp. said Tuesday that its first-quarter profit rose 24 percent as the fast food company benefited from the weak U.S. dollar and strong global sales. For the January-March period, the suburban Chicago company earned $946.1 million, or 81 cents per share. That's up from $762.4 million, or 62 cents per share, during the same period last year.
- The world's largest restaurant chain said European revenue climbed 23 percent to nearly $2.4 billion, while quarterly revenues in Asia, the Middle East and Africa grew 24 percent to about $1 billion. Both geographic regions posted double-digit profit growth.
- In the U.S., same-store sales grew 2.9 percent during the quarter, but the company disclosed its comparable U.S. sales fell in March. That 0.8 percent decline was the first negative same-store sale figure in five years, analysts said. (uh oh)
- Chemicals company DuPont said Tuesday that profits increased 26 percent in the first quarter, boosted in part by higher selling prices and the weak dollar.
- Sales for the quarter grew 9 percent to $8.6 billion, thanks largely to higher local selling prices and the weak dollar, as overall volume was down 1 percent. Revenue totaled $8.77 billion, up from $8.16 billion.
- The company's performance continues to be driven by growth outside the United States, with overseas sales accounting for almost two-thirds of total sales for the quarter. Volume in the U.S. was down 5 percent, while volume increased 4 percent in Europe and 6 percent in the Asia-Pacific region, the company said.
- During the quarter, sales in emerging markets grew 25 percent, led by Brazil, China, India and Eastern Europe. Local selling prices increased 6 percent overall, more than offsetting higher ingredient costs.
- Sales in the agriculture and nutrition unit increased 18 percent to $2.9 billion, reflecting strong global demand for DuPont's seed technology and crop protection products.
Long Ultrashort Consumer Services, Russell 2000 in fund and personal account
