Breaking News

P&G Cuts Earnings Outlook

February 12, 2014

Currency woes in emerging markets to blame

Procter & Gamble says currency rate changes in Venezuela, Argentina and other developing countries are hurting its profitability and therefore has cut its earnings outlook for the year. It expects that earnings will grow 3 to 5%, excluding one-time items, rather than its prior forecast of 5 to 7%. It still expects revenue to rise 3 to 4%when stripping out the effect of acquisitions and foreign exchange rates.

Procter & Gamble Co., like other consumer products makers, has turned to emerging markets to increase its sales amid slow growth in developed markets. Developing countries now account for about half of P&G's revenue, but the growth rate there is now slowing too.

The maker of products including Tide detergent and Crest toothpaste said in its most recent quarterly report that it sales were in line with trends in the overall consumer market industry, which had flat to 1% growth in developed markets and was up 7 to 8% in developing markets.

Hurting its outlook for the year is a change in government policy in Venezuela related to foreign currency rates and the recent slump in currency values in Argentina, Turkey, South Africa and other developing countries.

  • Fit for Fitness

    Fit for Fitness

    Christine Esposito, Associate Editor||February 21, 2017
    Kinx Active is a new brand targeting women who want beauty products that can stand up to their fitness routines.

  • Cargo Says Aloha To Spring/Summer

    Cargo Says Aloha To Spring/Summer

    Christine Esposito, Associate Editor||February 13, 2017
    Cargo Cosmetics has rolled out its new Spring/Summer collection with Hawiianan singer Anuhea.

  • Monday Morning Quarterback

    Monday Morning Quarterback

    Christine Esposito, Associate Editor||February 6, 2017
    Super Bowl commercials are big business. Let’s look at some of personal and household care brands that bought spots this year

  • What the Halal  Is Going On?

    What the Halal Is Going On?

    Imogen Matthews , In-Cosmetics||February 2, 2017
    Demand for these beauty products is surging thanks to a fastgrowing Muslim population.

  • Relief for Sensitive Scalps

    Relief for Sensitive Scalps

    Guadalupe Pellon and Annette Mehling , BASF||February 2, 2017
    BASF researchers detail the attributes of the company’s highly effective hair care system focusing on scalp sensitivity.

  • Defining Clean Skin

    Defining Clean Skin

    Nava Dayan PhD, Dr. Nava Dayan LLC||February 1, 2017
    A look at the issues, research and history surrounding this controversial topic.