Clorox exits Venezuela citing govt restrictions
OAKLAND, Calif. (AP) — Clorox is shutting down its operations in Venezuela, citing restrictions by the government, supply disruptions and economic uncertainty.
Shares jumped 3 percent before the opening bell Monday.
The U.S. consumer products company said that for almost three years it has had to sell more than two-thirds of its products at prices frozen by the Venezuelan government. Over that same time span, there has been a sharp rise in inflation that resulted in significantly higher costs for Clorox. The company says it's selling products at a loss in the country.
The Clorox Co. met repeatedly met with government authorities and said it had expected significant price hikes. However, the increases that were approved were "nowhere near sufficient" and it said the company would be forced to continue operating at a loss.