Trump's tariffs cast shadow over earnings season as ASX eyes 9,000
The final week of earnings season promises more surprise punches as CSL and James Hardie feel the pain of their US exposures.
This year’s earnings season bonanza has already seen the benchmark ASX 200 index breach 9,000 for the first time. But as we enter its final week, spare a thought for the companies exposed to an uncertain US economy.
Australia might face the lowest rate of levies under US President Donald Trump's global tariff regime. But one of the defining themes of earnings season so far has been the punishment doled out to US-exposed companies that have disappointed.
James Hardie shed 28% in a single session after bemoaning “weaker than anticipated” homebuilding trends in the US. Blood products giant CSL dropped 17%, in part a reaction to a fall in profit for its influenza vaccine business on lower US immunisation rates and the shuttering of 7% of its US plasma centres due to underperformance.
Australia’s largest steelmaker BlueScope, which saw a more modest intraday fall of 3%, reported a 90% drop in full-year profit. On a call with investors, chief executive Mark Vassella blamed a “maze” of US tariffs for lower demand and a $439 million writedown on its US metal coatings unit.
