Agilent Benefits from Falling Dollar (A)

May.16.06 | About: Agilent Technologies (A)

Adrian Dillon, EVP and CFO at Agilent, notes the effect of the falling dollar on Agilent's margins during the company's Q1 earnings conference call:

Ajit Pai - Thomas Weisel Partners

Yes, just looking at your geographic mix not in terms of revenues, but in terms of cost, and now that you have SPG leaving and potentially have ADG leaving. What percentage of your cost is in dollar rate countries and in the US and then what percentage is in China and what percentage in the rest of the world, this is both cost as well as expenses?

Adrian Dillon

Ajit, I would say that dollar literally dollar is roughly 40%, but then you get essentially the Malaysian and other related areas that are locked to the US dollar. China is roughly 25% today and obviously growing the whole Asian area is about 60% today.

Ajit Pai - Thomas Weisel Partners

So that would mean that a falling dollar would actually benefit your margins?

Adrian Dillon

Yes.