UPDATE 1-Home cleaning products maker Clorox to exit Venezuela

lunes 22 de septiembre de 2014 09:19 GYT
 

(Adds details, shares)

Sept 22 (Reuters) - Home cleaning products maker Clorox Co said it was discontinuing operations in Venezuela as the business was no longer viable and that it was looking to sell its assets there.

The company's shares rose 6 percent to $96 in premarket trading.

Clorox said the operating restrictions imposed by the Venezuelan government, economic uncertainty and supply disruptions would have led to considerable operating losses for the foreseeable future.

Venezuela devalued its currency bolivar last year, which forced a number of consumer goods companies such as Colgate-Palmolive Co and Avon Products Inc to slash product prices.

Clorox said in June that the economic environment in Venezuela was worsening and the company was "considering all its options."

For nearly three years, Clorox had to sell more than two-thirds of its products at prices frozen by the Venezuelan government, the company said in a statement on Monday.

The company said it expected to incur after-tax exit costs of $60 million-$65 million, or 46-50 cents per share, in its fiscal 2015.

Discontinued operations are also expected to reflect about $10 million-$15 million in after-tax exit costs over the next three fiscal years, the company said.

Cash-related exit costs, net of expected tax benefits, are expected to be $5 million-$10 million. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Kirti Pandey)