J&J sees 4 cent per share Q1 charge for Venezuela devaluation

Mon Feb 25, 2013 8:25am EST

Products made by Johnson & Johnson for sale on a store shelf in Westminster, Colorado April 14, 2009. REUTERS/Rick Wilking

Products made by Johnson & Johnson for sale on a store shelf in Westminster, Colorado April 14, 2009.

Credit: Reuters/Rick Wilking

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(Reuters) - Diversified healthcare company Johnson & Johnson, which makes consumer products like the Neutrogena-brand line, said on Monday that Venezuela's February 13 devaluation of its currency would cut first quarter profit by 4 cents per share.

The company said it would take the $100 million charge to make changes to its balance sheet to reflect the 32 percent cut in the bolivar's value. It does not expect that cut to change its earnings-per-share forecast for 2013.

In January, the company forecast 2013 earnings in a range of $5.35 per share to $5.45 per share.

Venezuela lowered the value of its currency to shore up government finances. It is the fifth devaluation in the past decade. Because of the move, other companies that sell consumer products in Venezuela have also announced charges this quarter.

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