Tags: Procter | Gamble | Sales | Dollar

Procter & Gamble's Sales Miss Estimates on Strong Dollar

Thursday, 23 Apr 2015 08:16 AM

Procter & Gamble Co. reported a steeper-than-expected 8.3 percent fall in quarterly sales, blaming a strong dollar and said currency fluctuations would hurt 2015 sales by 6-7 percent.

The maker of Tide detergent and Pampers diapers gets roughly two-thirds of sales from outside the United States.

The dollar has surged about 8.5 percent against a basket of major currencies since the beginning of the year, making sales denominated in other currencies less valuable in dollar terms.

P&G's sales fell to $18.14 billion in the third quarter ended March 31, hit 8 percentage points by a strong dollar and 1 percentage point by the planned divestitures of some brands.

Sales in the company's beauty, hair and personal care products business fell for the ninth quarter in a row, dragging down P&G's total sales and volumes.

Analysts on average were expecting revenue of $18.49 billion, according to Thomson Reuters I/B/E/S.

The company's shares were down 0.7 percent at $82.47 in premarket trading on Wednesday.

Net income attributable to P&G fell to $2.15 billion, or 75 cents per share, in the third quarter ended March 31, from $2.61 billion, or 90 cents per share, a year earlier.

P&G said it took a non-cash charge of $300 million, or 10 cents per share, related to the sale of its Duracell battery business to Berkshire Hathaway Inc last November.

On an adjusted basis, the company's earnings of 92 cents per share were in line with analysts' average estimate.

Up to Wednesday's close, P&G stock had fallen nearly 9 percent this year.

© 2017 Thomson/Reuters. All rights reserved.

   
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Procter Gamble Co. reported a steeper-than-expected 8.3 percent fall in quarterly sales, blaming a strong dollar and said currency fluctuations would hurt 2015 sales by 6-7 percent.
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2015-16-23
Thursday, 23 Apr 2015 08:16 AM
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