Daily Management Review

EY: US companies are more profitable than European concerns


05/15/2017


Profitability indicators of American concerns are higher than those of their competitors from Europe. These are the results of a study of audit and consulting company EY.



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The total revenue of 300 public European companies for the past year amounted to 6.7 trillion euros, and operating profit - 576 billion euros. The total income of 300 American concerns, whose shares are traded on the exchange, for 2016 are estimated at 8.4 trillion euros. Total profit at the same time reached 970 billion euros.

"American companies have a significant competitive advantage in terms of profits, and the distance between Europe and the States increased again last year," said Mathieu Meyer, a spokesman for EY. On average, Americans were 30% more profitable compared to their competitors from the Old World.

Apple is ahead of the whole planet. No other leading company in Europe and the US does not earn as much as the manufacturer of iPhones. According to EY experts, the operating profit of the concern for the past year amounted to almost 57 billion euros, which is comparable to the total income from the core business of the five leading European companies.

EY experts believe that the advantage of American companies lies in the fact that they occupy a significant share in the national market and are represented in various industries. In addition, they focus on technology and services. In Europe, automotive and energy concerns are dominating.

According to the EY forecast, Europeans may well catch up with their American counterparts in terms of profitability this year. "The low euro exchange rate will give a strong impetus to European enterprises, especially those which are actively engaged in business outside Europe," EY states. 

source: augsburger-allgemeine.de






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