Shares in Kraft Heinz to plunge on news of US probe, loss

Published February 22, 2019

Shares in Kraft Heinz are expected to plunge when markets open Friday after the consumer goods company said it was being investigated by U.S. regulators and it reported a massive loss.

Kraft Heinz said it received a subpoena in October from the U.S. Securities and Exchange Commission related to an investigation of its procurement operations, which cover deals a company makes with outside suppliers. It said it's cooperating with authorities.

The probe was disclosed in the earnings report Thursday, in which it reported a massive $12.6 billion loss for the fourth quarter, compared with an $8 billion profit a year earlier.

The loss was largely due to a $15.4 billion writedown on the value of its Kraft and Oscar Mayer trademarks.

Shares were down 20 percent in premarket trading.

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