Foreign Sales by U.S. Companies Continue to Rise

45.8% of Sales Now Generated Overseas
Standard & Poor’s
recently announced that for fiscal year 2007, S&P 500 companies with full
reporting information posted 45.8% of their sales from outside of the United
States versus 43.6% in 2006. The data is based upon 251 companies within the
S&P 500 that have full reporting information.

"The destination and
manufacturing of U.S. products and services has changed. Helped along by lower
costs for labor, healthcare, pension (and OPEB) and assisted at times by tax
laws and product regulations, U.S. companies have moved their operations abroad
where products can be more cost efficient to both manufacture and sell," says
Howard Silverblatt, senior index analyst at Standard & Poor’s and author of
the report.

Standard & Poor’s Index Services findings were based on
fiscal year 2007 data for issues with full reporting information. Of the 251
companies with full reporting information, European sales represented 28.8% of
foreign sales, with 4.6% coming from the United Kingdom. Asian sales represented
16.8%. Standard & Poor’s also determined that foreign income taxes increased
US$10.9 billion or 9.7% in fiscal year 2007, while U.S. federal income taxes
declined US$4.2 billion or 2.7%.

"Higher growth for emerging markets,
the decline in the U.S. dollar and concern over U.S. consumer spending are
fueling the continuing shift to sales abroad," adds Silverblatt. "The growing
significance of international sales and profits among U.S. domiciled companies
should not be overlooked as more and more companies shift their focus
overseas."

The full report can be accessed by going to: www.standardandpoors.com/indices and clicking on
publications.

Source: Standard & Poor’s

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