US companies clobbered by Venezuela's crisis

Washington

THE political and economic crisis in Venezuela is costing US companies dearly, as General Motors can attest following the unexpected nationalisation of its plant there.

The big carmaker shut down its operations in Venezuela and laid off its 2,700 workers after the government on Wednesday seized the plant, which had been idle because of the chaotic market environment. The group had been operating in the South American country for 69 years.

GM isn't the only US business to be walloped by Venezuela's crisis.

Kimberly-Clark, a personal-care paper group, had its factory taken over last July, and posted a charge of US$153 million to deconsolidate its Venezuela operations.

Biscuit-maker Mondelez - behind America's Oreo brand - also took a one-time charge of US$778 million to reconfigure its Venezuela operations as an investment in its accounts, to prevent them dragging the group's earnings down. Although Mondelez products still sell in Venezuela, it's una…