[ad_1]
Kraft Heinz Co.
KHC, -0.17%
Shares fell more than 9% after trading hours on Thursday afternoon after the company wrote off more than $ 15 billion related to previous acquisitions and revealed an SEC investigation. Kraft Heinz announced a loss of $ 12.61 billion in the fourth quarter, or $ 10.34 per share, for a business turnover of $ 6.89 billion, up from $ 6.84 billion of dollars a year ago. A large portion of this loss is due to "non-cash impairment charges of $ 15.4 billion to reduce the carrying amount of goodwill in certain operating units, primarily US Refrigerated and Canada Retail, as well as in certain intangible assets, mainly the trademarks Kraft and Oscar Mayer ". to the output. After adjusting for this and other factors, the company reported a profit of 84 cents per share, down 90 cents per share and below analysts' estimates. Analysts on average expected adjusted earnings of 94 cents per share for a $ 6.94 billion business figure, according to FactSet. Kraft Heinz blamed price cuts in the United States during the holiday season, due to promotions and lower commodity costs. Kraft Heinz also disclosed a SEC subpoena, which reads: "The company received a subpoena in October 2018 from the US Securities and Exchange Commission (" SEC "), related to an investigation into the Company's purchasing area, in particular its accounting policies, procedures and internal controls related to its purchasing function, including, in particular, agreements, side agreements and amendments to agreements with its suppliers. " Kraft Heinz shares closed with a 0.2% drop to $ 48.18 on Thursday, but dropped to less than $ 44 after the announcement was released. The stock has already fallen by 28.6% in the last year, the S & P 500
SPX, -0.35%
gained 3.1%.
Have the latest news sent to your inbox. Subscribe to free e-mails from the MarketWatch newsletter. Register here.
[ad_2]
Source link