Europe's deepening economic crisis is cutting into corporate earnings, with the continent's woes threatening to exert a drag on multinational corporations around the world into next year, The Wall Street Journal reports.

And it’s no wonder. About 20 percent of U.S. exports go to Europe. And about 17 percent of profit for companies in the Standard & Poor’s 500 Index comes from Europe, according to Deutsche Bank's chief U.S. equity strategist, David Bianco.

About 60 percent of the 195 S&P 500 companies that have released second-quarter earnings failed to reach their revenue forecasts, according to Reuters. And many companies blame weak European demand for much of the shortfall.

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That includes Apple, Cisco, and Ford Motor.

Many European economies are in recession, dampening both business and consumer spending.

"I don't see the light at the end of the tunnel," said Leif Östling, chief executive of Swedish truck maker Scania AB, which reported a 40 percent decline in profit.

"The ongoing European crisis presents the biggest risk to our economy," Treasury Secretary Timothy Geithner said in congressional testimony Wednesday. "The economic recession in Europe is hurting economic growth around the world.”

And most economists do not see the trend changing anytime soon, so U.S. companies are expressing anxiety about 2013.

To be sure, some analysts say that defensive stocks, such as consumer goods and pharmaceutical companies, will not get hit hard.

“At the end of the day, people in Europe will still buy Pampers even if they cost a drop more,” Russ Koesterich, chief investment strategist for iShares, told The New York Times.

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