UBS On Japan's Impact On S&P 500 Earnings, And The American Export Industries Most At Risk

UBS does some quick maths on Japan’s contribution to corporate earnings:

Japan accounts for about 1.5% of S&P 500 Revenues, based on:

␣    Foreign Revenues are ~30% of total S&P 500 revenues
␣    Japan accounted for 4.7% of U.S. exports in 2010
␣    Japan accounted for 5.3% of sales of foreign affiliates of U.S. firms in 2008 (latest available data).

So Japan accounts for about 5% of foreign revenues of U.S. firms or 1.5% of total revenue of the S&P 500 (0.05*0.30 = .015). Profit margins are much lower in Japan than other regions—in 2010E, 3.2% in Japan vs. 7.5% for the world as a whole. (See Jeffrey Palma, Global Profit Picture, March 3, 2011).

As for the specific industries most exposed, this list of exports ranked by amount going to Japan is handy:

japan exports

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