:. Food Industry News


Nestle Says Limits Exposure to Financial Risks

Source: Reuters
10/10/2008

Zurich, Oct. 9 - Nestle, the world's biggest food group, said on Thursday it was keeping a close eye on the turbulence in global markets and had reduced its exposure to financial risks in the last year.

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In response to a question about how the credit crisis might affect its financing, a Nestle spokesman said the company was well aware of the current developments in the financial markets and their potential consequences.

"In keeping with its culture of taking the long-term view, Nestle has strong systems and legal agreements in place to protect its financial interests," he said.

"Over the last 12 months, the company has taken steps to significantly mitigate any exposure to financial risks."

The Vevey-based maker of Nescafe coffee, KitKat chocolate bars and Maggi soup is due to publish third-quarter results on Oct. 23.

Nestle shares, which have held up relatively well in the recent market turbulence, were down 6.1 percent at 42.76 Swiss francs at 1506 GMT, as investors switched out of defensive stocks and back into financials, traders said.

The Dow Jones Stoxx European food and beverage index was off 4 percent.



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