Posted on Saturday, October 18 2008 @ 4:46 CEST by Thomas De Maesschalck
Google unveiled yesterday
it has taken measures to protect itself from swings in foreign currency exchange rates. Last quarter, 51 percent of the search king's income came from outside the US.
Specifically, Google has invested about $80 million in hedging programs that counteract currency swings, Chief Financial Officer Patrick Pichette said on a conference call to discuss Google's third-quarter financial results. The foreign-exchange issue that currently afflicts Google is that the dollar is growing stronger relative to other currencies right now, which effectively devalues revenue from other countries.
The hedging programs "should be viewed as an insurance policy," Pichette said.
Google has hedging programs for the euro, the Canadian dollar, and the U.K. pound, and plans to extend the program to other foreign currencies, he said.
