Foreign turnover accounts for more than
75% of the total at one in four listed Spanish
The efforts made by many Spanish companies to further
their international expansion is proving key to offset-
ting the effects that Spain’s deep recession is having on
their accounts. Foreign sales are becoming increasingly
important and are offsetting the stagnation taking place
in domestic turnover, which has been weighed down by
the lethargic state of internal demand, with both public
and private consumption dropping and gross domestic
product contracting.
During the first half of 2012, foreign turnover at Spain’s
listed companies rose by almost 16% to 59.63% of the
total (56.33% in 1H 2011), while domestic turnover rose
barely 1%. At industrial and service companies, we take
turnover to be revenues; and for banks, we use interest
and similar income.
These figures prove the fact that right now the majority
of companies are generating a portion of their revenue
abroad. Inmany cases, it is a significant figure: at more than
half the companies, foreign turnover exceeds domestic
turnover; and at one in four it exceeds 75% of the total.
The European Union is becoming less relevant
Unlike in previous years, the growth in foreign business
has been focused on business developed in non-EU
countries. The EU accounted for 32% of foreign turnover
at Spain’s listed companies during the first half of 2012
(19% of total turnover), compared with 34% during the
same period in 2011. The figure appears to reflect the
weak state of most of Europe’s economies.
Sector detail
Basic Materials, Industry, and Construction is the sector
in which foreign turnover is most important: 70.69% was
generated abroad, compared with 57.89% as at June
2011. It is also the sector with the strongest growth in
foreign turnover (+52.9%). It is closely followed by Tech-
nology and Telecoms, sector in which 69.8% of total turn-
over comes from abroad, and this despite the fact that
it was one of the sectors with the slowest growth rates
under this heading (+5.9%).
BME Bussiness Areas
Report 2012
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