Feb 18 Colgate-Palmolive Co, the world's
largest toothpaste maker, said it expected a one-time loss of
$180 million to $200 million in the current quarter after
Venezuela devalued its foreign exchange rate.
Colgate said it expected a one-time loss of 19 to 21 cents
per share if Sicad (Supplementary System For The Administration
Of Foreign Currency) rate remains at 11.70 in the first quarter.
Venezuela's central bank devalued the Sicad, one of two
rates in the country's currency control system, by 3 percent to
11.7 bolivars per dollar on Saturday.
Procter & Gamble Co, the world's largest household
products maker, last week cut its sales and earnings forecast
for the year to reflect unfavorable foreign exchange rates in
Venezuela and in various developing markets.
Colgate said on Tuesday it expected earnings to be reduced
by 3-4 cents per share in the first quarter.
Chief Executive Ian Cook said last month foreign exchange
fluctuations are expected to hurt sales by 3 percent and profit
by 4-5 percent in 2014.
The company, which receives about 4 percent of its net
revenue from Venezuela, had warned that the devaluation of the
Venezuelan currency would result in a one-time loss of $120
million for the first quarter of 2013.
Through its subsidiary in Venezuela, the Company is invested
in U.S. dollar-linked, devaluation-protected bonds and fixed
interest rate bonds.