Foreign Sales By U.S. Companies Continue to Rise

Standard & Poor’s, the world’s leading index provider, announced today that for fiscal year 2007, S&P 500 companies with full reporting information posted 45.8% of their sales from outside of the United States versus 43.6% in 2006. The data is based upon 251 companies within the S&P 500 that have full reporting information.

“The destination and manufacturing of U.S. products and services has changed. Helped along by lower costs for labor, healthcare, pension (and OPEB), and assisted at times by tax laws and product regulations, U.S. companies have moved their operations abroad where products can be more cost efficient to both manufacture and sell,” says Howard Silverblatt, Senior Index Analyst at Standard & Poor’s and author of the report.

Standard & Poor’s Index Services findings were based on fiscal year 2007 data for issues with full reporting information. Of the 251 companies with full reporting information, European sales represented 28.8% of their foreign sales, with 4.6% coming from the United Kingdom. Asian sales represented 16.8%. Standard & Poor’s also determined that foreign income taxes increased US $10.9 billion or 9.7% in fiscal year 2007, while U.S. federal income taxes declined US $4.2 billion or 2.7%.

“Higher growth for emerging markets, the decline in the U.S. dollar and concern over U.S. consumer spending are fueling the continuing shift to sales abroad,” adds Silverblatt. “The growing significance of international sales and profits among U.S. domiciled companies should not be overlooked as more and more companies shift their focus overseas.”

The full report can be accessed by going to: www.standardandpoors.com/indices and clicking on publications.

Source: Standard & Poor

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