Ford is to take an US$800m pre-tax hit in results for the fourth quarter of 2014 due to the currency woes in Venezuela.
The charge will reduce net income by about $700m.
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“We continue to expect our full year 2014 total pre-tax profit, excluding special items, to be about $6bn, the automaker said in a regulatory filing.
“Venezuelan exchange control regulations have resulted in an other than temporary lack of exchangeability between the Venezuelan bolivar and US dollar, and have restricted our Venezuelan operations’ ability to pay dividends and obligations denominated in US dollars. These exchange regulations, combined with other recent Venezuelan regulations, have constrained parts availability and are now significantly limiting our Venezuelan operations’ ability to maintain normal production,” the automaker said.
“In future periods, our financial results will not include the operating results of our Venezuelan operations. Instead, we will record cash and recognise income from our Venezuelan operations to the extent we are paid for parts we sell to them or receive dividends from them.
“Ford has operated in Venezuela for the last 53 years and our operations in Venezuela will continue for the foreseeable future. We continue to work proactively with the Venezuelan official agencies to ensure they understand our Venezuelan operations’ business needs and potential production opportunities.”
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By GlobalDataSee also: ANALYSIS: Ford: Time to rev up profits in 2015?
