Coca-Cola's Currency Woes

Coca-Cola reported earnings in the fourth quarter of 2014 that were down 55 percent from the same quarter in 2013. However, sales dropped only 2 percent over the same period. The reason for the large drop in net income was currency related. Because of the devaluation of the Venezuelan bolivar, Coca-Cola experienced a revaluation of its assets in Venezuela in the amount of $393 million in the fourth quarter alone. Previously, in the first quarter of 2014, Coca-Cola was forced to write off $247 million because of the bolivar devaluation in that quarter.