By Veronika Gulyas
BUDAPEST--Richter Gedeon Nyrt. (RICHTER.BU), Hungary's largest
home-grown pharmaceutical firm, issued a profit warning on Tuesday
after the Russian ruble weakened sharply against core
currencies.
Late Monday, the Russian central bank raised the country's key
policy rate to 17% from 10.5% effective from Tuesday in an effort
to stem the ruble's decline.
Richter generates about one-third of its revenue in Russia. The
company now said this revenue and group operating profit are likely
to drop in euro terms.
"The significant devaluation of the Russian ruble is expected to
negatively impact the company's fourth quarter 2014 results,"
Richter said in a stock exchange filing.
If the ruble exchange rate remains close to where it is now,
Richter expects a "substantial" one-off financial loss at the end
of the year, it said.
The ruble hit its weakest-ever level of 66 against the dollar
around 0836 GMT on Tuesday, compared with a level of 59.55 at the
market's opening, as a decline in oil prices eclipsed the central
bank's massive increase in interest rates overnight.
Andrey Ostroukh in Moscow contributed to this article.
Write to Veronika Gulyas at veronika.gulyas@wsj.com; Twitter:
@VeronikaGulyas1