Finance chiefs are anticipating more pain from foreign exchange rates after the U.S. dollar strengthened again this summer and fall, following a historic tear last year. “We had an expectation of what [foreign] currency was going to do," said Bhaskar Rao, chief financial officer at Lexington, Ky.-based Tempur Sealy. The mattress maker now sees foreign exchange as a headwind for its full-year 2023 results—a reversal of previous guidance. Zoetis, which sells its products in around 100 countries, estimates the impact of foreign exchange on future results based on a spot rate at the time of reporting, according to CFO Wetteny Joseph. Like many companies, however, Zoetis does provide investors with “constant-currency" metrics, which strip out the effects of foreign exchange.

Source: Wall Street Journal December 01, 2023 09:47 UTC