Kodak Joins Hedging Club as Euro Weakens

A weak euro cost Eastman Kodak Co. millions of dollars in its first quarter, but it’s not taking the same risk again. The world’s largest photography company, which generates about a quarter of its revenue in Europe, this month joined a list of major U.S. firms hedging to protect themselves against the plunging currency. Merck & Co., Johnson & Johnson and 3M Co. are among other companies that have hedged euro exposure, according to their most recent filings. Kodak is also not alone in reporting revenue declines caused by the sagging euro, which touched a record low Friday and has lost 22% of its value against the dollar since its debut last year. The currency’s decline, and recent accounting changes that make hedging less cumbersome, “are causing a lot of CFOs and treasurers to say, ‘We’ve got to have a game plan to deal with this unpredictable currency market,’ ” said Anil Agarwal, a currency specialist at Brown Bros. Harriman & Co.