STOCKHOLM/LONDON/GDANSK Oct 23 (Reuters): Some of the world's biggest producers of food, consumer goods and cars delivered stronger-than-expected quarterly results on Thursday, easing investor concerns over the toll of US President Donald Trump's import tariffs.
Ahead of the third-quarter earnings season, global companies had warned of more than $35 billion in tariff-related costs as US duties reach their highest since the 1930s. They're also contending with disrupted supply chains, weaker consumer confidence and higher input costs.
As Trump continues to wield trade policy as a negotiating tool, executives still face regular threats of further tariffs and worries that tariffs will lead to higher inflation and hurt household budgets.
On Thursday, the busiest day for results so far this earnings season, some results suggested businesses are finding ways to pass on higher costs to customers or cut them - helping fuel stock market rallies.
Take Sweden's Volvo Cars: the company's third-quarter earnings smashed analysts' expectations, sending its shares up as much as 40 per cent, as a sweeping cost-cutting programme launched by CEO Hakan Samuelsson began to pay off.
The company is among the European carmakers most exposed to Trump's tariffs as most of its US-bound cars are exported from Europe.
"What we're now seeing is really, wow okay, this is delivering faster than we thought and faster than we planned," Samuelsson said of the cost reductions.
Gross profit margin rose to 24.4 per cent from the previous quarter's 17.7 per cent. To further counter tariffs, it plans to move production of some hybrid models to America in the coming years.
Britain's Unilever, another multi-national with a new CEO at the helm, also reported quarterly sales growth that topped expectations, driven by demand for beauty products across North America despite cautious consumer sentiment.
Like its peers, the maker of Dove soap and Hellmann's mayonnaise has been streamlining operations to reduce costs and CEO Fernando Fernandez is focusing on premium products to lift margins.
