Procter & Gamble lowers earnings, revenue forecasts for Q4
21 June 2012
Procter & Gamble cut its earnings and revenue forecast for the second time in three months on sluggish sales in its core markets and unexpected currency moves hurting the consumer goods group.
Organic sales would be up by between 2 and 4 per cent, lower than the previously expected range of 4 and 5 per cent, as foreign exchange moves were expected to shave 4 per cent off the group's net sales for the year, the company said.
CEO Bob McDonald said the top 40 focus was an important step toward achieving more balanced growth across developed and developing markets, adding, it would focus us on many of the US businesses helping restart growth in the US.
However, he added it was not just about the US. He said many of the top 40 businesses were in China, which was the company's second largest and most profitable market, and there were businesses within the top 40 in Russia and also in Brazil.
The new strategy comes with the company struggling to revive profit growth and win back the confidence of disillusioned investors following a series of missteps and setbacks.
P&G, held in high regard for its meticulous management, has triggered Wall Street discontent by losing market share, cutting its profit forecast, raising prices unsuccessfully and taking a $1.5 billion writedown on old acquisitions.