US consumer goods firm Colgate to take hit from Venezuela devaluation
AFPNEW YORK--U.S. consumer goods giant Colgate-Palmolive said Monday it would take a significant loss in the current quarter from Venezuela's 32-percent currency devaluation announced last week.
February 13, 2013, 1:28 am TWN
The company said that in a preliminary assessment of the impact of the devaluation of the bolivar, it would take a one-time after-tax loss of US$120 million, or US$0.25 per share, in the 2013 first quarter, “related to the re-measurement of the local balance sheet at the date of the devaluation.”
There would also be an ongoing impact of five to seven U.S. cents a share each quarter in 2013 related to adjusting local Venezuela financial statements to the new currency regime, Colgate said.
However, it added, “The devaluation will not have any impact on the company's 2012 results of operations or financial position.”
In a long-awaited move, on Friday Caracas announced it would devalue the bolivar by 32 percent, effective Wednesday, on the orders of cancer-stricken President Hugo Chavez.