The ongoing energy revolution in the US favours the country on almost every level; cheaper gas and electricity equals increased industrial productivity, stronger consumer sentiment and a natural tailwind to support GDP. Throw in some highly accommodative Federal Reserve policies and US-exposed equities look set to trend higher.
Moreover, the recent wild excitement over Liquefied Natural Gas Limited's (ASX: LNG) potential to ride the LNG energy demand boom suggests the energy revolution has a long way to run yet. LNG Limited is now up an astonishing 740% in the last six months thanks to its LNG energy-development plans in the US. Overall economic growth should in principle benefit all companies, consumers and investors. Here are some Australian companies with a relatively high proportion of revenues from North America.
CSL Limited (ASX: CSL) is a manufacturer of life-saving medical treatments which recorded 41% of group revenues in North America in the last financial year. Another healthcare provider with even more leverage to health spending in North America is ResMed. Inc (CHESS) (ASX: RMD), with more than four-fifths of its revenues coming from the region.
Computershare Limited (ASX: CPU) is the company responsible for the digital administration and registration of general corporate actions and investors' share holdings. Total revenues in the last financial year were more than $US2 billion, 40% of which were generated in the US. It's nicely leveraged to activity in equity markets globally and the US in particular.
Another financial services business with significant exposure to an expanding US economy and energy markets is Macquarie Group Ltd (ASX: MQG), with 68% of its income coming from abroad in the last financial year. Macquarie has so far resisted the idea of relocating its headquarters to North America or Europe, instead choosing an altogether shorter move across the street to new offices at Sydney's 48 Martin Place. Wherever the headquarters is located, Macquarie's market-facing businesses will continue to benefit from US economic strength.
Other companies with US exposure on an upward trend include the world's largest packaging and plastics business Amcor Limited (ASX: AMC) and crates and pallets business Brambles Limited (ASX: BXB). Both have exposure to North American industrial growth and the ability to grow profits on the back of relatively cheaper costs.
Unsurprisingly, all of the above businesses have been touching multi-year highs in the last year and may still represent cunning plays for Australian investors with an eye for the future. There's also one more company offering..
