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Stock Market & Financial Investment News

News Breaks
April 17, 2014
08:21 EDTBGCGeneral Cable remeasures Venezuelan unit's exchange rate
General Cable announced that based on recent changes to the Venezuelan currency exchange system, the company is changing the exchange rate used to remeasure its Venezuelan subsidiary’s financial statements. The company has decided to use the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela’s Complementary System of Foreign Currency Administration. As of Q1, the SICAD I exchange rate used by the company was 10.8 bolivars to the U.S. dollar as compared with the official exchange rate of 6.3 bolivars to the U.S. dollar used previously. As a result of remeasuring the balance sheet of its Venezuelan subsidiary on March 28, at the SICAD I exchange rate of 10.8 bolivars to one U.S. dollar, the company expects to record a charge in the range of $80M-$85M in Q1 results. Due to the changes in the currency exchange system, restrictive pricing controls, ongoing labor negotiations and lingering social unrest, management estimates pre-tax income for 2014 from Venezuela to be in the range of $0-$20M, which is down from its previous communicated expectation of $30M. As a result of the above, the company has initiated an impairment analysis of goodwill and indefinite-lived intangible assets attributable to the company’s Phelps Dodge International business unit, which includes the operating results of Venezuela. While the amount of the non-cash impairment charge has yet to be determined, the goodwill and indefinite-lived intangible assets attributable to the PDIC business unit were approximately $155M and $124M, respectively, as of March 28. The company anticipates the amount of the impairment charge may be a material portion or all of the goodwill and/or indefinite-lived intangible assets attributable to the PDIC business unit.
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December 11, 2014
09:50 EDTBGCGeneral Cable management to meet with BB&T
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