Procter & Gamble Sees Sales and Earnings Gains Hit By Strong Dollar

Procter & Gamble (NYSE: PG  ) reported its fiscal first-quarter results this morning, with the consumer-products giant reporting an 8% gain in diluted net earnings per share on a 2% overall rise in revenue. But results were hit by sharp negative currency impacts from the strong dollar, which pulled down core earnings-per-share by $0.09 and wiped out what would have been an 8% increase on a currency-neutral basis.

Organic sales and volume rose by 4%, with two of Procter & Gamble's business segments providing the strongest results. In its Fabric Care and Home Care segment, 6% growth came from each product category, with new distribution for its Duracell batteries contributing to overall success. The Baby, Feminine, and Family Care saw similar 6% growth, with P&G citing new product releases in North America and stronger baby-care growth in emerging markets.

CEO A.G. Lafley characterized P&G's results as "consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year." He cited market-share gains, coming new product launches, and cost-cutting measures as part of P&G's overall positive momentum.

Yet Procter & Gamble merely reiterated its past guidance for the full fiscal 2014 year, disappointing investors who'd hoped for a rosier view of the consumer giant's future. It sees foreign-currency impacts of about 2% continuing to offset organic sales growth of 3% to 4%, and core earnings-per-share growth of 5% to 7% for the fiscal year. As of 8 a.m. EDT, Procter & Gamble shares were higher by 0.1% in pre-market trading.

P&G will have a conference call at 8:30 a.m. EDT to discuss the results in further detail. For more information, visit the Procter & Gamble investor relations webcast site.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 01, 2013, at 1:43 PM, JohnS wrote:

    For the impact of there international performance: http://goo.gl/q4B5n1

    With the US market at a saturation point, with competitors content with their share of the pie and low growth in the developing market wont be able to cover the damage: http://goo.gl/q4B5n1

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2699319, ~/Articles/ArticleHandler.aspx, 12/21/2014 3:42:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement