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Ford Takes Writedown on Venezuelan Currency
Ford Motor Co. is taking a $800 million pretax charge in the fourth quarter of 2014 because of its inability to exchange dollars for Venezuelan bolivars.
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Ford Motor Co. is taking a $800 million pretax charge in the fourth quarter of 2014 because of its inability to exchange dollars for Venezuelan bolivars.
Ford says it will ignore the operating results of its Venezuelan unit and ignore the $500 million in cash held by the subsidiary. Instead, the company will count only transactions in which the Venezuelan unit pays its parent company. The new policy took effect on Jan. 1.
The one-time charge will reduce Ford's net income for last October-December by $700 million but won't impact an expected pretax profit.
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