HispanicBusiness

provide a lot of professional services globally, which isn't fully reflected in trade data, he said.

The share of Virginia exports that go to Europe started to decline in the end of 2008 and start of 2009, down from around 30 percent to 35 percent of total Virginia exports, the Richmond Fed research showed.

Those exports have never fully recovered from the recession, though Virginia exports are at a reasonably high level.

(ASTERISK) (ASTERISK) (ASTERISK) (ASTERISK) (ASTERISK)

The impact from a Eurozone recession on each U.S. state varies considerably, the Wells Fargo Securities report said.

However, the impact could be much larger depending on the extent to which Europe's woes spread to China.

About 1.2 percent of Virginia's gross domestic product is linked to trade with Europe, according to the report. That falls below the average of about 2 percent for U.S. states.

In comparison, about 4.8 percent of South Carolina's GDP is linked to trade with Europe, largely because the state has a BMW auto assembly plant and ships transportation equipment to Europe.

(ASTERISK) (ASTERISK) (ASTERISK) (ASTERISK) (ASTERISK)

Corporate profits have been lagging this year because of the deteriorating financial conditions in Europe.

As Europeans buy fewer cars, for instance, profits of American automakers fall.

Ford Motor Co. has said it expects to lose more than $1 billion in Europe this year. General Motors also cited Europe as a factor in its second-quarter profit, which fell 41 percent as sales declined in debt-burdened nations such as Greece, Portugal and Italy.

Europe's slowdown also hurts factories in China, slowing demand for U.S. companies that have operations there.

During recent second-quarter earnings reports from some of the nation's largest companies, one CEO after another told investors and Wall Street analysts that Europe was making them nervous.

"The new reality is that this world is not in a normal growth mode," Dow Chemical CEO Andrew N. Liveris said on a conference call, "and it does not appear that we will see this for at least 12 to 24 months."

Royal Caribbean CEO Richard D. Fain said, "The steady drumbeat of negative news emanating out of Europe is certainly having an impact."

The chief executive officer of German automaker Daimler AG, Dieter Zietsche, referred to "economic clouds in the sky, which are floating especially over Europe."

Richmond-based NewMarket, which produces additives that make engines run smoother, also has seen softness in Western Europe, said David Fiorenza, the company's vice president and chief financial officer.

"People are still having to maintain their vehicles, but there is definitely a change in the slope of the curve" in demand, he said. "General economic conditions are slower. We are not immune to that. But Europe will come back."

NewMarket hasn't lost ground overall. The company still posted record revenue so far this year, with profit rising 6 percent for the second quarter and 20 percent for the first six months of 2012.

MeadWestvaco CEO John A. Luke cited slower growth around the world, especially in Europe, as "a headwind for the business" in the April-June quarter.