J&J taking $100M charge for Venezuela devaluation
Health care giant Johnson & Johnson said Monday that it expects to take a charge of about $100 million to its first-quarter net income due to Venezuela's currency devaluation.
Johnson & Johnson, the world's biggest seller of health care products, said the decision is based on its preliminary assessment of the impact of the Venezuelan government's move, which took effect Feb. 13. The charge amounts to 4 cents per share.
The maker of prescription medicines, medical devices and consumer health products such as Tylenol said the charge is not related to remeasurement of its local balance sheet on that date.
The company, which is based in New Brunswick, N.J., said in a statement that it does not expect the charge to affect its earnings-per-share guidance for 2013. J&J said on Jan. 22, when it announced its fourth-quarter results, that it expects earnings per share of $5.35 to $5.45 and revenue of about $71 billion this year.
A handful of other companies have made similar announcements that Venezuela's move will hurt their results.
Those include fellow drugmaker Merck & Co., which said its 2013 net income would be reduced by $200 million. Consumer products company Procter & Gamble Co. has said it expects to take $200 million to $275 million in charges, while rival Colgate-Palmolive Co. plans to take a charge of $120 million this year.