OAKLAND, California–Clorox is shutting down all operations in Venezuela, citing restrictions by the government, supply disruptions and economic uncertainty.Shares jumped three per cent before the opening bell yesterday.
The consumer products company said that for almost three years, its affiliate, Corporaci�n Clorox de Venezuela SA, had to sell more than two-thirds of its products at prices frozen by the Venezuelan government. Over that same time span, there was a sharp rise in inflation that resulted in significantly higher costs for Clorox.
The Clorox Co affiliate met repeatedly met with government authorities and said it had expected significant price hikes would be allowed earlier in 2014.However, Clorox said that the price increases that were approved were "nowhere near sufficient" and that the company would be forced to continue selling products at a loss.
AP