The shadow of the logo of Euro is seen on a U.S. one dollar note in this picture illustration taken in Madrid March 10, 2015. REUTERS/Sergio Perez
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The euro's slide toward parity with the dollar will provide a much-needed boost for European companies this year and force U.S. rivals to adapt their businesses or risk losing market share.Other companies predicting a tail wind from the around 20-percent drop in the value of the euro over the past six months to $1.06 Friday include jet manufacturer Airbus, German car and truck maker Daimler and French engineering groups Schneider Electric and Alstom.Many companies said hedging contracts would mean the impact of the lower euro would take time to feed through.In the meantime, the weaker euro may actually weigh on some European companies' earnings because companies must report drops in the values of hedging instruments, which move in the opposite direction to companies' revenues.Philip Morris International, which has a significant portion of its debt denominated in euros, said they were also benefiting from lower borrowing costs, since meeting the coupons on euro debt was now cheaper in dollar terms. For a small number of U.S. companies, the euro drop may even be a net positive, operationally.
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