Venezuelan Currency Devaluation Hits Consumer Goods, Oil
The effects of last week's surprise devaluation of Venezuela's currency are already hitting some U.S. firms. Colgate-Palmolive Co. (NYSE: CL) said this morning that it will take a $120 million one-time charge in the first quarter (about $0.25 a share). Oil field services firm Halliburton Co. (NYSE: HAL) will also take a charge of $30 million in the first quarter as a result of the devaluation.
There are not likely to be the only firms in this fix. Other consumer goods makers are also likely to feel some pain. Avon Products Inc. (NYSE: AVP), Clorox Co. (NYSE: CLX), Procter & Gamble Co. (NYSE: PG), and H.J. Heinz Co. (NYSE: HNZ) are also exposed to Venezuela's devaluation. Chevron Corp. (NYSE: CVX) participates in six projects in the country and France's Total SA (NYSE: TOT) also holds interests in several projects in Venezuela. So far none has indicated any charge-offs related to the devaluation.
Today's revelations from Colgate and Halliburton have had little impact on share prices. Colgate's stock is flat in the early afternoon, and Halliburton's shares posted a new 52-week high of $41.44 earlier today.
Filed under: 24/7 Wall St. Wire, Consumer Goods, Economy, International Markets, Oil & Gas Tagged: AVP, CL, CLX, CVX, HAL, HNZ, PG, TOT