Consumer products company, Colgate-Palmolive Company(CL) reported on Friday that they are expecting to see a first quarter loss related to the devaluation of Venezuelan currency.
The Venezuelan government made an announcement last week that they plan to devalue their currency, which is the bolivar fuerte from 4.30 per dollar to 6.30 per share. This change will be effective on Wednesday, February 13.
With this news, CL now expects to see a loss of $120 million, or 25 cents per share in their first quarter. This is expected to be a one time loss and is directly related to the currency adjustment.
The company also said that much smaller impacts are estimated to effect the remainder of the quarters in 2013. CL expects to see impacts of 5 to 7 cents per share while they continue to adjust to the devaluation as well as price controls put in place by the country’s government.
Colgate-Palmolive shares were mostly flat during premarket trading Monday. The stock has increased 19% in the past year.
The Bottom Line
Shares of Colgate-Palmolive Company(CL) have a 2.29% yield, based on Friday’s closing price of $108.49.
Colgate-Palmolive Company(CL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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