HSBC: International biz can boost bottom line

July 29, 2013 Updated Jul 29, 2013 at 8:18 AM EDT

By Allissa Kline, Buffalo Business First Reporter

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HSBC: International biz can boost bottom line

July 29, 2013 Updated Jul 29, 2013 at 8:18 AM EDT


Companies in the Northeast that operate internationally are more profitable than companies with domestic-only sales, according to a new report sponsored by HSBC Bank USA N.A.

The latest "Spotlight on U.S. Trade" study - the third study in a planned series on international trade - examines the profit margins of publicly-traded companies in the Northeast and four other regions in the country. It concludes that "globally oriented companies" in the Northeast have profit margins nearly 10 percentage points greater than regional counterparts that do not operates outside of the United States.

The report also shows that:

• Globally-minded healthcare companies in the Northeast are more profitable on average that domestically-minded peers.

• Companies with an international presence experienced less-volatile year-over-year profit margins compared to U.S.-only companies.

• The degree of international business corresponds to the degree of profitability.

The study is based on a survey of 259 publicly-traded companies in four sectors: healthcare, industrial, consumer goods and information/communication technologies. The level of internationalization for each company was based on international sales and operations.

The Northeast is defined in the report as 11 states - Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware and Maryland - and Washington, D.C. In 2012, the region exported $226.7 billion in goods of the $1.6 trillion exported nationally.

The report is an Economic Intelligence Unit study sponsored by HSBC Bank, the former leading retail bank in Western New York. Locally, the bank now focuses on commercial and international banking.

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