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STOCKHOLM/LONDON/GDANSK Oct 23 (Reuters) - Some of the world's biggest producers of food, consumer goods and cars delivered stronger-than-expected quarterly results on Thursday, easing investor concerns over the toll of U.S. President Donald Trump's import tariffs. Ahead of the third-quarter earnings season, global companies had warned of more than $35 billion in tariff-related costs as U.S. duties reach their highest since the 1930s. They're also contending with disrupted supply chains, weaker consumer confidence and higher input costs. Sign up here. As Trump continues to wield trade policy as a negotiating tool, executives still face regular threats of further tariffs and worries that tariffs will lead to higher inflation and hurt household budgets. On Thursday, the busiest day for results so far this earnings season, some results suggested businesses are finding ways to pass on higher costs to customers or cut them - helping fuel stock market rallies. DELIVERING FASTER COST CUTS The company is among the European carmakers most exposed to Trump's tariffs as most of its U.S.-bound cars are exported from Europe. "What we're now seeing is really, wow okay, this is delivering faster than we thought and faster than we planned," Samuelsson said of the cost reductions. Gross profit margin rose to 24.4% from the previous quarter's 17.7%. To further counter tariffs, it plans to move production of some hybrid models to America in the coming years. Like its peers, the maker of Dove soap and Hellmann's mayonnaise has been streamlining operations to reduce costs and CEO Fernando Fernandez is focusing on premium products to lift margins. Evidence so far in the U.S., shows spending by more affluent consumers is helping to bolster overall consumption whilst lower- and middle-income consumers are being more cautious due to persistent worries about inflation. MORE CHALLENGING MARKETS FOR SOME After a prolonged period of uncertainty and turbulence, the early crop of earnings gives an insight into industries and regions most heavily hit and the strategies companies have adopted to mitigate costs. So far, the EU, Japan and Britain have struck trade deals with the U.S. to lower tariffs. Demand from restaurants and hotels for Essity's napkins and paper towels has fallen over the past two quarters. CEO Florent Menegaux cited a tough U.S. economic picture. "The real economy, the goods economy, isn't working at all," he said. "We can see this because trucks aren't running, the confidence level among transport companies is plummeting." REASSURING NEWS MAY FURTHER FUEL STOCK MARKETS Big rallies in some of the market's most beaten-down shares like Volvo Cars illustrate the relief among investors when things may not be as bad as feared. That is adding fuel to prolonged U.S. and European stock market rallies, especially when expectations are low. European companies are forecast to report an increase of just 0.2% in third-quarter earnings, on average, which would be the worst quarterly performance since the first quarter of 2024. Out of 78 companies in the U.S. S&P 500 index that have reported earnings so far, 87% have reported earnings above analysts expectations. Reporting by Marie Mannes in Stockholm, Alexander Marrow in London, Vera Dvorakova in Gdansk and Gilles Guillaume in Paris; Writing by Josephine Mason; Editing by Elaine Hardcastle Our Standards: The Thomson Reuters Trust Principles., opens new tab Stockholm-based company news correspondent who mainly covers anything to do with retail and industrial companies in Sweden as well as other sectors with Swedish companies. She previously covered the general Nordic stock market from Gdansk, reporting on a range of subjects, from companies exiting Russia to M&As and supply chain concerns. Marie has degrees in journalism and international relations and is keen on finding stories that drive the market and that have unreported elements to it. Chief companies correspondent for Russia, Alexander covers Russia’s economy, markets and the country's financial, retail and technology sectors, with a particular focus on the Western corporate exodus from Russia and the domestic players eyeing opportunities as the dust settles. Before joining Reuters, Alexander worked on Sky Sports News' coverage of the 2016 Olympics in Brazil and the 2018 World Cup in Russia. Vera is a news reporter in Gdansk where she covers equities and companies in the Nordics with a keen interest in pharmaceutical and gaming companies. Previously, she freelanced for the European Parliament and completed the Erasmus Mundus Master's in Journalism, Media, and Globalization at Aarhus University and Amsterdam University.
