Colgate expects Venezuela charge of up to $200M
NEW YORK (AP) — Consumer product maker Colgate said Tuesday it will take a one-time charge of as much as $200 million as a result of new monetary policies in Venezuela.
In January the Venezuelan government said foreign companies investing in Venezuela will be required to make purchases at a rate established at weekly central bank auctions. Colgate said the latest price was 11.7 bolivars per dollar. The official exchange rate is 6.3 bolivars per dollar.
Colgate-Palmolive Co. said that if the rate remains at 11.7 bolivars per dollar, it expects a charge of $180 million to $200 million, or 19 to 21 cents per share, in the first quarter.
It said that at current rates, the policy would also reduce its annual net income by 11 to 14 cents per share.
Analysts polled by FactSet expect profit of $3.08 per share in 2014.
Company shares dropped 28 cents to $62.11 in after-hours trading.