S&P 500 Foreign Sales for 2017

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jbranx
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Joined: Thu Feb 09, 2017 6:57 pm

S&P 500 Foreign Sales for 2017

Post by jbranx » Thu Aug 16, 2018 3:04 pm

S&P index group is out with its report of the 500's foreign sales for last year. They remain very robust at 43.62% of all sales. Here are the key details from the report:

The percentage of products and services produced or sold by S&P 500 companies outside the U.S. equated to 43.62% for 2017, up from 43.16% in 2016, but down from 44.35% in 2015 and 47.82% in 2014, which was at least an 11-year record high.

Income tax payments to the U.S. jumped 29.1% in 2017 (to $207.2B from $160.5B) , as S&P 500 issues paid 66.5% of their income tax dollars to Washington, and that is before the 2018 repatriation impact; foreign income taxes increased 22.1% (to $104.5B from $85.6B).

The tax issues and payments for 2018 may be tied to new and developing trade and tariff regulations, and may be a new issue impacting 2018 payments, and potentially cause variances from recent historical patterns; the year-to-date higher dollar is also expected to have an impact, but to some degree, this is an ongoing event for the market.

Both Asian and European sales continue to increase in absolute dollars, as European sales grew a slight tick higher as a percentage of all S&P 500 sales (8.14% from 8.13%), with Asia declining (8.26% from 8.46%); the bottom-line is both partners are inherently part of U.S. sales, with Asia being a large supplier to the U.S.

S&P 500 operating earnings for full-year 2017 increased 15.89% to $1.066 trillion, up from $919.9 billion for full-year 2016, as sales increased 5.84% to $10.54 trillion from $9.96 trillion in 2016.

Geographic Breakdown

· Sales in Asia declined, but they remained the highest of any region. Asia accounted for 8.26% of all S&P 500 sales, down from 8.46% in 2016, but up from 2015's 6.77% and 2014's 7.80%.

· European sales ticked up for 2017, but they remained lower than Asia. For 2017, European sales increased to 8.14% of all sales, up from 8.13% in 2016, 7.79% in 2015 and 7.46% in 2014. The UK (which is part of European sales) increased to 1.12% from 2016’s 1.10%, after 2015’s increase to 1.86%.

· Japanese sales decreased to 1.51% of all S&P 500 sales from 1.52% in 2016, and African sales inched down to 3.90% from 3.97% in 2016. Sales in Canada declined to 2.16% from 2.67% in 2016, after declining significantly to 1.17% in 2015 from 3.51% in 2014 (oil-related sales were seen as a contributing factor).

Sector Analysis

· Information technology had the most foreign exposure of any sector, even though it declined to 56.95% from 2016’s 57.15%.

· Energy trailed right behind information technology, reporting 54.06% in foreign sales, down from 58.88% in 2016 (when it overtook information technology as the leading sector).

· Health care increased to 38.16% from 37.41% in 2016 (52.42% in 2011[/color][/color]), while financials increased to 31.20% from 30.82% in 2016, as it posted the lowest rate of the sectors.

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