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SEC Filings

10-Q
NEXEO SOLUTIONS, INC. filed this Form 10-Q on 05/10/2018
Entire Document
 

The following is a summary of GDP, oil price and U.S. Industrial Production Index fluctuations in our various regions of operations by fiscal quarter:
 
 
Q2 18 v Q2 17
 
Q1 18 v Q1 17
 
Q4 17 v Q4 16
 
Q3 17 v Q3 16
North America
 
 
 
 
 
 
 
 
U.S. GDP Growth
 
2.9
%
 
2.6
%
 
2.3
%
 
2.2
%
U.S. Industrial Production Index
 
3.9
%
 
3.0
%
 
1.3
%
 
1.9
%
West Texas Intermediate Crude Oil Average Price Increase
 
21.5
%
 
12.2
%
 
7.2
%
 
5.5
%
EMEA
 
 
 
 
 
 
 
 
Euro Area GDP Growth
 
2.5
%
 
2.8
%
 
2.7
%
 
2.4
%
Brent Crude Oil Average Price Increase
 
23.1
%
 
20.3
%
 
11.0
%
 
8.0
%
Asia
 
 
 
 
 
 
 
 
China GDP Growth (1)
 
6.8
%
 
6.9
%
 
6.9
%
 
6.9
%

(1) As reported by the Chinese government.

Overall GDP growth has increased in many of the countries in which we operate. As a result we have experienced an increase in sales volumes. In terms of currency, the USD has weakened over the prior comparable period against most other currencies in which we transact. As a result of these factors, reported dollar revenues and gross profit have been positively impacted in many of our regional operations.

North America

The North American economic environment continued to improve during the first half of fiscal year 2018. U.S. GDP increased in the second fiscal quarter of 2018 as compared to second fiscal quarter of 2017, and the inflation rate rose 2.4% in the second fiscal quarter of 2018 compared to the same period in the prior year.
 
In terms of currency, the CAD strengthened when compared against the USD for the first half of fiscal year 2018 following declines during fiscal year 2017, which positively affected, among other items, the reported dollar revenues and gross profit from our operations in Canada. Additionally, the Peso strengthened in value against the USD in the first half of fiscal year 2018.
 
EMEA

In Europe, we conduct business primarily in the Western European countries. As evidenced by their increases in GDP, the economic environment in the countries in which we operate in Europe has continued to improve.
 
In terms of currency, the euro and other European currencies strengthened versus the USD in the first half of fiscal year 2018, which positively affected, among other items, the reported dollar revenues and gross profit from our European operations.
 
The market price for the products we sell in Europe typically correlate to the market price of Brent Crude as these operations are primarily based on the distribution of commodity plastics products which are sourced in Europe. Consistent with the increase in oil prices through fiscal year 2017 and the first half of fiscal year 2018, we have experienced an increase in average selling price for the products we distribute in Europe.

Asia

Our operations in Asia are concentrated mainly in China. GDP growth in China, as reported by the Chinese government, has remained steady through the past several fiscal quarters.

In terms of currency, the RMB strengthened against the USD during the first half of fiscal year 2018 following declines during fiscal year 2017, which positively affected, among other items, the reported dollar revenues and gross profit from our operations in China.


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