Summary
This filing from American Express (AXP) on August 8, 2012, provides an update on the company's financial performance, specifically concerning its worldwide billed business in July 2012. Management indicated that while billed business continued to grow, the pace in July was slower compared to the second quarter. The F/X adjusted growth rate was 6% in July, or 7% when further adjusted for 'days mix'. Management attributed this moderation to a weaker overall economic environment impacting various spending segments, including small business and corporate. This trend is also observed across the broader industry. The strengthening U.S. dollar is noted as a factor that will negatively impact reported growth rates, although the F/X adjusted growth for the quarter is expected to be higher than reported levels.
Key Highlights
- 1Worldwide billed business grew in July 2012, but at a decelerated pace compared to Q2 2012.
- 2F/X adjusted worldwide billed business growth was 6% in July 2012.
- 3Worldwide billed business growth was 7% in July 2012 when adjusted for both foreign exchange and 'days mix'.
- 4Slower growth is attributed to a weak overall economic environment affecting small business and corporate spending.
- 5The trend in July billed business growth is consistent with broader industry patterns.
- 6A strengthening U.S. dollar is expected to negatively impact reported growth rates.
- 7F/X adjusted growth for the quarter is anticipated to be higher than reported growth due to currency fluctuations.