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Spotlight shines on Latin America: Treasury & Risk's 2012 Global Operations Survey.

Corporate expectations are looking south of the U.S. border for 2012. More than 50% of the senior finance executives responding to Treasury & Risk's new Global Operations Survey pick Latin America (31%) and Brazil (22%) as markets where their companies plan to expand in the next 12 months; 19% say they expect Brazil (6%) and Latin America (13%) to provide the most revenue growth in 2012. With more attention comes more scrutiny; 29% say they are concerned about treasury management and banking in Latin America. That's well behind the 39% who name Southern Europe as their top worry, not surprising given the sovereign debt crisis. In another likely nod to Europe's problems, 70% say they are monitoring financial institution risk more closely than they were a year ago. In fact, 16% say they changed banks because of such risks within the last year, while another 14% plan to do so in the coming year. MORE SURVEY RESULTS CAN BE FOUND ONLINE AT WWW.TREASURYANDRISK.COM

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60% of $5-billion-plus companies have same-day visibility into their global cash, vs. 46% of companies with less than $500 million in revenue.

45% of companies with regional treasury centers say they operate three treasury centers; the number of centers cited ranged from one to 10.
REGION/COUNTRY EXPECTED TO PROVIDE MOST REVENUE GROWTH

U.S. and Canada 43%

China 17%

Latin America 13%

Southeast Asia 12%
and Pacific

Europe 8%

Brazil 6%

Note: Table made from bar graph.

NEW COUNTRIES/REGIONS WHERE COMPANIES ARE EXPANDING

U.S. and 34%
Canada

Latin America 31%

Southeast Asia 24%
and Pacific

Brazil 22%

China 22%

Europe 12%

Note: Table made from bar graph.

MARKETS THAT HAVE BECOME LESS ATTRACTIVE

Europe 44%

Middle East 26%

Russia 26%

Africa 19%

China 17%

Latin America 16%

Note: Table made from bar graph.

REGIONS/COUNTRIES POSING TREASURY MANAGEMENT OR BANKING CONCERNS

Southern Europe 39%

Latin America 29%

China 27%

Northern Europe 27%

Middle East 25%

North America 19%

Note: Table made from bar graph.

VISIBILITY INTO GLOBAL CASH

Same day 54%

Next day 33%

Weekly 8%

Monthly 5%

Note: Table made from pie chart.

GLOBAL TREASURY OPERATIONS ARE:

Centralized at headquarters 68%

Centralized by regions 23%

Decentralized 9%

Note: Table made from pie chart.

HOW MANY BANK WEB PLATFORMS DO YOU USE?

Up to 5 62%

From 5 to 15 28%

From 15 to 30 5%

More than 30 5%

Note: Table made from pie chart.

RESPONDENTS' COMPANIES' ANNUAL REVENUE

Under $500 mln 28%

$500 mln to $1 bln 17%

$1 bln to $5 bln 31%

More than $5 bln 24%

Note: Table made from pie chart.

LIQUIDITY MANAGEMENT TOOLS USED

Physical pooling 39%

Notional pooling 25%

Netting 34%

In-house banking 48%

Note: Table made from bar graph.

DO YOU OPERATE REGIONAL TREASURY CENTERS?

Yes 35%

No 65%

Note: Table made from pie chart.

COMPANY POLICY ON PORTION OF FX EXPOSURES TO HEDGE

Up to 25% 42%

25% to 50% 24%

50% to 90% 27%

100% 7%

Note: Table made from pie chart.

INTERNATIONAL SALES AS PERCENTAGE OF REVENUE

Up to 10% 44%

From 10% to 20% 8%

From 20% to 30% 9%

From 30% to 50% 21%

More than 50% 18%

Note: Table made from pie chart.
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Article Details
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Publication:Treasury & Risk
Article Type:Survey
Geographic Code:1USA
Date:Feb 1, 2012
Words:538
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