HispanicBusiness

"We not only had lower demand in some markets, including food and personal care, but we also had nearly $55 million of negative impact on the top line from the depreciation of the (Brazilian) real and euro compared to this period last year," Luke said in the company's earnings conference call.

However, he said, "While growth is slower, it is still growth."

In the second quarter, MeadWestvaco said it experienced lower demand of folding cartons for personal care products in Europe. The market for health care-related packaging, however, has held up internationally, including Europe, with growth rates in high-single digits.

Declines in the value of the euro and other currencies against the dollar can also hurt U.S. firms doing business overseas. It means their sales in Europe translate into fewer dollars here.

MeadWestvaco said unfavorable foreign exchange rates reduced sales growth by 4 percent and operating margins by 140 basis points year-over-year in the second quarter.

The Brink's Co., a Henrico County-based global provider of secure transportation, also noted in its second-quarter earnings that foreign currency exchange had a negative impact. The company's revenue in its European and Mideast region was down 6 percent due to unfavorable currency impact. But the company did say it had organic growth in France.

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Not every company is glum about Europe.

Heavy construction equipment manufacturer Caterpillar reported blockbuster earnings in July, driven in part by companies' long-term programs to upgrade aging machines.

For Virginia firms, success depends a lot on what part of Europe a company does business in.

The most difficult markets are in the so-called PIGS nations -- Portugal, Italy, Greece and Spain -- that have felt the worst of the fiscal crisis.

"I think we are fortunate that we do very little business in Spain, only a limited amount in Italy and we don't do any in Greece," said Scott Seyler, export salesman for Northland Forest Products, a Fluvanna County-based maker of kiln-dried hardwoods that has seen growth in Europe and Asia.

"We have been fortunate that our focus has been on the central and northern markets of Europe and that has allowed us to have continued success," Seyler said. "Exports have been a very important component of our business and we run about 50-50 in terms of export versus domestic business."

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The slowdown hasn't stopped some Virginia companies from making acquisitions or investments in Europe.

In July, Richmond-based AMF Bakery Systems acquired Tromp Bakery Equipment B.V., a Dutch-based maker of baking equipment.

That deal had more to do with growing demand in emerging markets than in Europe, said Ken Newsome, AMF Bakery's president.

"The biggest thing for us with the Tromp acquisition is that while the company is located in Europe, it actually services the global market," Newsome said. "So the strength of the company's sales are not based on its location in Europe, but its coverage of Asia and Africa and Russia."

AMF makes bakery equipment for companies that supply fast-food restaurants and demand for that has continued to grow, Newsome said. "We have just built a Burger King bakery in Turkey and we have just taken on an order for a local fast-food company in Saudi Arabia," he said.

Hanover County-based Owens & Minor Inc., a Fortune 500 medical supplies distributor, took a major step into the international market in July by acquiring Movianto Group, a European-based third-party logistics firm for pharmaceutical and medical device manufacturers, for $158 million.

Craig Smith, Owens & Minor's chief executive officer, said the acquisition "will open a very big door for us in Europe." Movianto serves about 600 pharmaceutical and medical device customers in 11 European countries from 23 logistics centers.

"As for the operating environment in Europe, we feel that this is an opportune time for this transaction,' Smith said in a conference call with analysts.

"The majority of Movianto's revenues today are generated in the United Kingdom, Germany and France. Movianto is a solid strategic, cultural and operational fit for Owens & Minor and the European health care market offers attractive demographics."

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While Europe's economy has been teetering, the Richmond region has seen what might be called a minisurge in investments from European-based companies.

For example, BGB Technology, a U.K.-based maker of electrical and optical slip ring assemblies for rotary applications, announced in April it would invest more than $2 million in Chesterfield County and hire about 15 people.

One of the region's fastest-growing small companies is Henrico-based Elephant Insurance, a subsidiary of a U.K.-based company.