American firms see application is concerned about the exposure of Europe

A trader works on the floor of the New York Stock Exchange, on March 10, 2011.

Credit: Reuters/Brendan McDermidBy Ashley Lau

NEW YORK | Tue July 5, 2011 3: 17 pm EDT

NEW YORK (Reuters) - Europe's debt woes led lower stock markets around the world and can infect the gains in the second quarter for us companies with large sales in the region.

Information technology and consumer staples companies are among the most highly exposed and are more sensitive to changes in demand for the industry, analysts said.

Companies on the S & P more exposed to Europe, the largest concentration of industry was in technology information, with eight he reporters 30 percent or more of their sales in Europe.

A screen of Thomson Reuters StarMine of 41 companies reports more than 30% of their sales in Europe has been a decline in earnings expectations. Forecasts are down 1.3% in 30 days, according to the data.

"We will see an impact, the sector to", said Paul Hickey, co-founder of the research firm Bespoke Investment Group to Harrison, in the State of New York. "Multinational consumption, such as Coke and Heinz staple companies, have more revenue to the outside and inside the United States."

Last month end Adobe Systems Inc. (ADBE).(O), which a 32.4% of its sales in Europe, sparked concerns about the European benefits when he cited the weakness of demand in Europe for its applications.

"What we saw was slowing down the process to a certain extent, delaying purchases, clients," said Mark Garrett, Chief Financial Officer of the designer of software based in San Jose, California, widely known for its publishing software and photography.

Companies such as publisher of software Adobe and tobacco company, Philip Morris International (PM).(N) are among those who have the largest international exhibition and are more vulnerable to any economic distress overseas.

Based in New York Philip Morris International, which has an exhibition of 32.4% in Europe, attributed the decline of the total cigarette market "unfavourable economic conditions" in Europe, and pointed out the Greece and the Spain in particular. The company said its total cigarette market in the European Union decreased by 5.3% in the first quarter.

"In consumer staples, those who have most to the Spain, the Greece and to a lesser extent, of the United Kingdom face stronger winds, and the reason is that consumers are under pressure from the most,"said analyst equities of Morningstar Philip Gorham.""

Gorham, who covers consumer staples industry, said he expects to see the trade down on markets such as the Spain and the Greece.

"In Spain for example, unemployment of 20 percent really changed the way in which the consumption takes place in some industries," he said. "I believe that we will see continuous deep decline in certain regions and certain markets".

Last week, Europe's largest engineering conglomerate Siemens (SI.)(N), a bellwether for the German economy, warned on the relaxation of the growth in a slowdown of the economic recovery.

"The tailwind for the economic recovery is likely more." Now, increased efforts are needed in the pursuit of growth, "Director of Finance of the Siemen, Joe Kaeser, stated in an event of the investor in Shanghai."

Dutch company Philips Electronics (PHG).(As) has echoed this sentiment, a warning of significant decline in profits in the business of consumers because of the weakness of demand in Europe.

For American companies, the impact of any withdrawal of the application abroad could hurt the margins of society by having an impact on prices for power, as the excess supply must be absorbed elsewhere in the world.

Frames-based on the Tempe, Arizona first Solar Inc. (FSLR)(O), which was 60.1% of its sales in Europe and ranks among the most exposed S & P 500, said in May that they see slow and the concern about fluctuations in demand for its sales in Europe.

During a conference call, Executive Director of the first solar, Rob Gillette, said that the company expects demand for European industry to go through a period of adjustment in the second and third quarters.

Among other technology companies with heavy exposure in Europe are based in San Rafael, California Autodesk Inc. (ADSK.)(O), with 40.1% of its sales in Europe, based in Lexington, KY Lexmark International (LXK.)(N), with exhibition of 36% and based in Fort Lauderdale (Florida) Citrix Systems (CTXS)(O), with an exhibition of 34.3%.

"Over the last decade, several American companies, to their advantage, expanded internationally," said Hickey of Bespoke. "The international arena had most impact that say 10 years ago."

Coca-Cola Enterprises (CCE).(N), which, with 62% of its sales in Europe, is the most exposed of all US companies on the S & P said that it was a little shelter negative impact on its sales in Europe.

"What is striking is that consumer arbitration is for our category, which only is not enough affordable, high-priced, said Hubert Patricot, President of the European Group of the company, in a conference call at the end of April." Despite the difficult economic environment, consumers continue to foster our category. »

(Reports by Ashley Lau;) (Editing by Andrew Hay)