Dave Marlo
Hide Caption

Procter & Gamble warns of lower profits due to Venezuelan currency devaluation

P&G reduces earnings outlook

a a a a
Share this story
Show Related Headlines
Related Articles
P&G aligns with Silicon Valley startups

CINCINNATI - At least two Cincinnati-area companies are warning shareholders that the Venezuelan government's decision to devalue its currency will have an impact on earnings.

Procter & Gamble Co. said it expects to incur one-time charges of $200 million to $275 million after tax, or 7 cents to 9 cents per share. Those charges will be recognized as non-core items in the company's 2013 results. P&G also said its core earnings will be 3 cents per share lower because the new exchange rate will affect the value of finished products and raw materials to and from the country.

Analysts were forecasting 2013 earnings of $4.06 for P&G. The company now says it will deliver core earnings per share between $3.94 and $4.04 for the year ending June 30.

General Cable Corp. also advised shareholders that the Venezuelan devaluation will lead to a one-time charge of $42 million in its fiscal first quarter. But General Cable said it expected no impact on operating results or cash flows.

P&G rival Colgate-Palmolive also warned shareholders of a one-time loss of $120 million because of Venezuelan currency issues. Colgate shares fell 58 cents to $108.20 in after-hours trading Thursday evening. 

P&G shares were down 57 cents to $76.21 in after-hours trading. General Cable shares were unaffected by the news, as of 6 p.m. Thursday.

Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Print this article

Comments

Hmm... It looks like you’re not a WCPO Insider. or Subscribe now to contribute!

Market Summary
The Dow Jones Industrial Average SM is proprietary to and is calculated, distributed and marketed by Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC and have been licensed for use. "Dow Jones(r)", "Dow Jones Indexes" and "Dow Jones Industrial Average SM" are service marks of Dow Jones Trademark Holdings, LLC. "CME" is a trademark of Chicago Mercantile Exchange Inc. All content of the Dow Jones Industrial Average (c) CME Group Index Services LLC 2010.