Procter & Gamble Cuts Profit Outlook, Joins Growing Chorus; Firm Cites Exchange Rates, Slow Growth; ASSOCIATED PRESS
Procter & Gamble Co. on Wednesday lowered its fourth-quarter earnings and revenue forecasts, the latest company to sound warning bells about slowing global economic growth.
P&G, which makes goods ranging from Tide detergent to Gillette razors, said it is cutting the forecast because of unfavorable foreign exchange rates, continued slow growth in developed markets and a slowdown of growth in China.
P&G's cut is its second in three months. The company is trying to balance growth in emerging markets, which make up about 30 percent of its sales, with the realities of an uncertain global economy and its own execution problems that have led to lackluster market share growth.
The world's largest consumer products company said it expects adjusted fourth-quarter earnings of 75 cents to 79 cents per share, down from its previous estimate of 79 cents to 85 cents per share.
Revenue is anticipated to drop 1 percent to 2 percent versus a prior outlook for a 1 percent to 2 percent increase. This implies revenue in a range of $20.45 billion to $20.66 billion.
Analysts polled by FactSet foresee earnings of 82 cents per share on revenue of $20. …