CINCINNATI - At least two Cincinnati-area companies are warning shareholders that the Venezuelan government's decision to devalue its currency will have an impact on earnings.
Procter & Gamble Co. said it expects to incur one-time charges of $200 million to $275 million after tax, or 7 cents to 9 cents per share. Those charges will be recognized as non-core items in the company's 2013 results. P&G also said its core earnings will be 3 cents per share lower because the new exchange rate will affect the value of finished products and raw materials to and from the country.
Analysts were forecasting 2013 earnings of $4.06 for P&G. The company now says it will deliver core earnings per share between $3.94 and $4.04 for the year ending June 30.
General Cable Corp. also advised shareholders that the Venezuelan devaluation will lead to a one-time charge of $42 million in its fiscal first quarter. But General Cable said it expected no impact on operating results or cash flows.
P&G rival Colgate-Palmolive also warned shareholders of a one-time loss of $120 million because of Venezuelan currency issues. Colgate shares fell 58 cents to $108.20 in after-hours trading Thursday evening.
P&G shares were down 57 cents to $76.21 in after-hours trading. General Cable shares were unaffected by the news, as of 6 p.m. Thursday.
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