The US economy looks set to continue 2013's strong performance with many key economic indicators pointing to renewed strength and increasing US growth in 2014. The ongoing energy revolution in the US favours the country in many ways; cheaper energy equals increased productivity for energy-intensive industries and a boost to consumer sentiment. This has helped create an economic boom that in principle should benefit companies, consumers and investors. Here are three Australian companies generating a significant proportion of sales in the US.
Twenty-First Century Fox (ASX: FOX) generated more than half of its revenues of $US27.68 billion in FY 2013 from within the US and Canada. Headquartered in New York, the newly-formed entertainment company is a market leader in pay-tv broadcasting in the US and globally. The company expects earnings growth in the high single to low double digits for fiscal 2014.
CSL (ASX: CSL) is a manufacturer of life-saving medicines as well as influenza and travel vaccines. It recorded 41% of group revenues in North America in FY 2013 and will report its half-year FY 2014 profit on 12 February. With over 88% of the group's sales revenues generated outside Australia last fiscal year, the group looks immune from any slowdown in the domestic economy.
Computershare (ASX: CPU) is the company responsible for the digital administration and registration of investors' share holdings. The company administers dividend payments and other general corporate actions on behalf of investors worldwide. Total revenues in FY 2013 were more than $US2 billion, 40% of which were generated in the US. A pick-up in equity and capital market activity equals an improved operating environment. The company recently stated it would be premature to revise its guidance of an approximately 5% increase in earnings per share for FY 2014. However, its shares have been touching 52-week highs in the last month.
Foolish takeaway
Owning shares in these three highly profitable companies will likely be more valuable than owning paper money in 2014. All look set to grow earnings, thanks in part to the resurgence of the US economy.
