According to a recent Wall Street Journal article, multinational company, Whirlpool, announced a $35 million operating loss in Europe (combined with the Middle East), and International Business Machines Corp. (IBM) was hit with a 5% decline in revenue in Europe. Kimberly-Clark Corp. is actually planning to stop selling one of their leading products (diapers) within Western and Central Europe, as the company admitted to earning no profit within the region.
Interestingly, the WSJ also reported that US multinational companies expect to generate 20% to 25% of their total sales in Europe. However, expectations have clearly not been met. With Europe’s economy currently lagging, we will see companies having to make up this lost revenue elsewhere.
Read the full WSJ article here: http://online.wsj.com/article/SB10001424052970204530504578076771035763116.html