SAO PAULO, Brazil (AP) -- One of Brazil's biggest food companies says it lost a year's worth of earnings on volatility in currency markets.
But officials at Sadia SA say they can cover the US$406 million in losses with a short-term line of credit. No details on the credit deal were offered.
Analysts say the US$406 million loss is likely more than the company's earnings before interest and taxes for 2008. Sadia says it has fired its chief financial officer.
Sadia officials say volatility in the exchange market led to the loss.
UBS Pactual says it forecasts Sadia's net debt for this year will be US$1.4 billion.
Sadia's shares were down 25 percent to 6.99 reals (US$3.77)each on Sao Paulo's Bovespa exchange in late-morning trading.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.