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California: News and Insight on Business in the Golden
State | THE STATE / NUTRITIONAL PRODUCTS

Herbalife Will Take $5-Million Charge

September 02, 1998|Bloomberg News

Herbalife International Inc., a dietary food and supplement marketer, said it will take a $5-million third-quarter charge to increase its accounting reserves as economic and political turmoil in Russia is expected to cause a "substantial" decline in sales in that country. Herbalife, which reported 1997 sales of about $1.49 billion, derived nearly 8% of its second-quarter sales from Russia. The Los Angeles-based company said market uncertainty stemming from the recent sharp devaluation of the Russian ruble will hurt second-half sales. The announcement was made after the close of U.S. trading. The company's Class A shares rose 88 cents to close at $14.19 on Nasdaq, and its Class B shares rose 6 cents to $10.38.

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