April 1, 2014 / 7:02 PM / 3 years ago

Ford expects $350 million charge tied to Venezuela currency changes

The company logo is seen on the bonnet of a Ford car during the media day ahead of the 84th Geneva Motor Show at the Palexpo Arena in Geneva March 5, 2014. REUTERS/Arnd Wiegmann

(Reuters) - Ford Motor Co (F.N) expects to take a roughly $350 million pre-tax charge in the first quarter, due to currency changes in Venezuela affecting the U.S. automaker’s subsidiary in the South American country, Ford said on Tuesday.

Ford said in a U.S. securities filing it was changing the exchange rate it uses to remeasure its Venezuelan subsidiary’s financial statements, based on recent changes to the country’s exchange rate system.

The company warned in December that a Venezuela currency devaluation would hurt its profits by about as much as the charge announced on Tuesday.

Reporting by Lewis Krauskopf; Editing by Richard Chang

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