5 Brazilian companies dependent on US market

Five Brazilian companies are the most dependent on the US market at this moment and may likely suffering more intensely the current crisis that slashes the world financial market: AB InBev, Braskem, Embraer, Gerdau Group, and JBS.

In the last few years, a bunch of Brazilian companies ventured beyond the country’s frontier to establish a foothold in foreigner countries. From simple exporters, in the beginning many of these companies, in a certain moment of their trajectory, unveiled an opportunity in either acquiring or even setup, from the green field, an operation in those countries. Some have been so successful that have even achieved a global leading position in their segments. The bad side of the story is that like any other transnational company, the Brazilian ones are likely exposed to the spillage of the international economical earthquakes, like now, that insist in shaking the planet every now and then.

According to Exame, a respectable Brazilian business magazine, five Brazilian companies are the most dependent on the US market at this moment, yet not necessarily in the order they are presented here, and, as such, may likely suffering more intensely the current crisis that slashes the world financial market:

  1. AB InBev, the Belgian-Brazilian brewing giant, controls Anhäuser-Busch, which produces Budweiser beer, the American synonymous with the beverage;
  2. Braskem, a gigantic Brazilian petrochemical conglomerate, after the acquisition of US Sunoco and DOW’s polypropylene divisions in 2010 and 2011, respectively, leads the American polypropylene market, with a production of 1.425 million MT per year;
  3. Embraer, the world-class Brazilian aircraft manufacturer, has currently one third of its sales revenue dependent on the US airlines orders;
  4. Gerdau Group, the steel mills conglomerate, harvested 30% of its sales revenue in the Q2 from US market;
  5. and JBS, the company’s accent turned out to be totally American, as 75% of its sales revenue came directly from the US (and indirectly from the Australian) markets - from the 2011 Q1 sales revenue, 43% came from the US beef operations, which, by its turn, controls the Aussie operations; 22% from Pilgrim’s Pride chicken business and 10% from pork business sales to US market.

In the last few years, a bunch of Brazilian companies ventured beyond the country’s frontier to establish a foothold in foreigner countries. From simple exporters, in the beginning many of these companies, in a certain moment of their trajectory, unveiled an opportunity in either acquiring or even setup, from the green field, an operation in those countries. Some have been so successful that have even achieved a global leading position in their segments. The bad side of the story is that like any other transnational company, the Brazilian ones are likely exposed to the spillage of the international economical earthquakes, like now, that insist in shaking the planet every now and then.

According to Exame, a respectable Brazilian business magazine, five Brazilian companies are the most dependent on the US market at this moment, yet not necessarily in the order they are presented here, and, as such, may likely suffering more intensely the current crisis that slashes the world financial market:

  1. AB InBev, the Belgian-Brazilian brewing giant, controls Anhäuser-Busch, which produces Budweiser beer, the American synonymous with the beverage;
  2. Braskem, a gigantic Brazilian petrochemical conglomerate, after the acquisition of US Sunoco and DOW’s polypropylene divisions in 2010 and 2011, respectively, leads the American polypropylene market, with a production of 1.425 million MT per year;
  3. Embraer, the world-class Brazilian aircraft manufacturer, has currently one third of its sales revenue dependent on the US airlines orders;
  4. Gerdau Group, the steel mills conglomerate, harvested 30% of its sales revenue in the Q2 from US market;
  5. and JBS, the company’s accent turned out to be totally American, as 75% of its sales revenue came directly from the US (and indirectly from the Australian) markets - from the 2011 Q1 sales revenue, 43% came from the US beef operations, which, by its turn, controls the Aussie operations; 22% from Pilgrim’s Pride chicken business and 10% from pork business sales to US market.
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