By John Kell
Consumer-products giant Colgate-Palmolive Co. warned it could
book one-time losses between $180 million to $200 million tied to
Venezuela's recent moves related to the exchange rate for foreign
investments.
The warning comes several days after peer Procter & Gamble
Co. trimmed its fiscal 2014 profit estimate, citing the devaluation
of Venezuela's bolívar. Procter & Gamble also warned results
for the fiscal year ending June 30 would be tempered by the
devaluation of the Argentine peso and other foreign currencies
against the U.S. dollar.
If the rate applied to foreign businesses were to be applied
during the quarter ended March 31, Colgate-Palmolive estimated
after-tax losses between 19 cents to 21 cents a share.
Meanwhile, the Venezuelan government late last month also
announced a new law on pricing, establishing a maximum 30% profit
margin. At this time, Colgate-Palmolive said it was unclear how
that new law may affect its current pricing strategy in the
region.
Shares were down 0.5% to $62.11 in after-hours trading.
Write to John Kell at john.kell@wsj.com