Chevron foresees a decline in profits due to exchange rate fluctuations, asset impairment charges, and a fall in production from upstream and downstream segments Chevron Corporation (CVX) provided an interim update for the first quarter of its fiscal 2014 (1QFY14; ended March 31, 2014) after markets closed yesterday. The second-largest oil company in the US based on market value – trailing Exxon Mobil Corporation (XOM) – expects its first quarter earnings to be lower than its earnings in 4QFY13, primarily due to unfavorable foreign currency exchange rates and environmental charges related to its mining unit. In after-hours trading yesterday, the stock price declined 0.54% to $118.46. The San Ramon, California-based company expects to record negative foreign currency charges of $100 million for the quarter. During 4QFY13, Chevron reported a positive foreign currency impact of $200 million. It also intends to record $400-500 million as asset impairment costs, most of which would be related to its mining operations. Chevron also provided an update on its production from its upstream and downstream segments for the first two months of its first quarter, and compared it to the previous four quarters’ performance.