CSL state in their reports impact of currency movements, the...

CSL state in their reports impact of currency movements, the main ones are:

currency baseline 1% change to profit
AUD/USD 0.90 +/- $1.2m
AUD/EUR 0.60 +/- $2.0m
AUD/CHF 0.92 +/- $1.6m

So USD is now 0.81 (down 10% from baseline), EUR 0.66 (up 10%) and CHF 0.94 (up 2%)

So net profit change since 1/2 year report is 1.2 * 10 - 2 * 10 - 1.6 * 2 = -11.2m

So current currency prices have a negative impact on CSL profit for the year even with the big drop in the US dollar.

Also, as can be seen by the impact of a 1% change in a currency pair, the US change has some impact (1.2m) but the change in the Euro (2m) and Swiss Franc (1.6m) both have a much higher impact.

So as it stands the current currency values is still negative for CSL and if the Euro is in as bad shape as it appears the impact could become even worse.

Combine the above with the negative report from Baxter and it is no surprise sentiment is staying negative for CSL.

Don't get me wrong I am a long term holder of CSL and am still bullish in the long term on the company but the current drop of the aussie against the US dollar alone is not enough to provide a boost to the price, we need stability in the Euro plus some positive news to break this negative funk.