HIGHLAND HEIGHTS, Ky., Jan 13, 2010 (BUSINESS WIRE) -- On Friday, January 8, 2010, the Venezuelan government announced its
intention to devalue its currency (Bolivar) and establish a two-tier
foreign exchange structure. The official exchange rate for essential
goods (food, medicine and other essential goods) will be adjusted from
2.15 Bolivars to each US Dollar to 2.60. The official exchange rate for
non-essential goods will be adjusted from 2.15 Bolivars to each US
Dollar to 4.30. General Cable expects that its products will be
classified as non-essential.
While the Company continues to evaluate the impact of these actions by
the Venezuelan government, the Company expects to record a one-time
charge in the first quarter of 2010 related primarily to the
remeasurement of the local balance sheet on the date of the devaluation.
The non-recurring pre-tax charge in the first quarter of 2010 is
expected to be $40 to $45 million. The Company does not expect any
impact to its 2009 results of operations or cash flows.
General Cable (NYSE:BGC), a Fortune 500 Company, is a global leader in
the development, design, manufacture, marketing and distribution of
copper, aluminum and fiber optic wire and cable products for the energy,
industrial, and communications markets. For more information about
General Cable visit our website at www.generalcable.com.
Certain statements in this press release, including without
limitation, statements regarding future financial results and
performance, plans and objectives, capital expenditures and the
Company's or management's beliefs, expectations or opinions, are
forward-looking statements. Actual results may differ materially from
those statements as a result of factors, risks and uncertainties over
which the Company has no control. Such factors, risks, and uncertainties
are more fully discussed in the Company's Report on Form 10-K, as
amended, originally filed with the Securities and Exchange Commission on
March 2, 2009, as well as periodic reports filed with the Commission.
SOURCE: General Cable Corporation
General Cable Corporation
Michael P. Dickerson, 859-572-8684
Vice President of Finance and Investor Relations