When you make your surf clothes and pay a good chunk of costs in Australian dollars, but sell your goods in euros or dollars, you’re going to mint some coin. Such is the case with Billabong, which yesterday upgraded its earnings estimates for Wall Street. Companies forecast earnings per share in order to avoid giving markets surprises. The CEO of Billabong, Derek O’Neill told the company’s annual general meeting yesterday that Billabong expects earnings per share growth of 12 to 16 percent in 2009. This doesn’t mean their selling more boardshorts, but is attributable primarily to the weakness of the Aussie dollar. According to their public records, more than 70 percent of salers are made outside of Australia.
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