As earnings season continues, some companies have highlighted the impact of “unusual weather patterns” on their second quarter results.
According to Goldman Sachs economist David Kostin, “A cool, wet season in parts of the US and Europe dampened some consumer activity, while business in other regions benefitted from an exceptionally hot summer.”
In a new report for clients, Kostin pulled statements from various weather-dependent companies to show how climate was a theme of this earnings season.
On top of this, we were faced with unusually widespread wet and cold weather conditions across multiple regions, including North America, across Northern Europe and India, all of which impacted the entire industry.
Unfortunately, we experienced an extremely wet and cold second quarter, with more rain in the U.S. in June than we’ve seen in 50 years; and 44% more precipitation than in June of last year.
Additionally, historically wet and cold conditions across Europe, including the coldest spring for Germany in 40 years, further dampened already weak consumer sentiment and industry trends, and contributed to volume declining 3% in Germany in the quarter.
As with other retailers, the weather had a negative impact on seasonal sales in the third quarter.
CMS Energy Corp
Later in the year, we benefited from a hotter than normal summer and put this upside to use by investing substantially more in tree trimming, generating plant maintenance and system hardening. The benefits are showing up in our present reliability performance during prolonged hot and humid weather.
Fortunately, we are in, I think, 41 or 42 states in Puerto Rico in the U.S. if you will. And so when the weather was bad in one part of the country it wasn’t bad in the other part of the country.
For companies like United Technologies Corp., which deals in air conditioning, a hot summer is a great thing. Their orders were up nearly 20% this quarter.