Strong US dollar: Procter & Gamble shares are still up: Procter & Gamble is becoming more cautious in its earnings forecast for the current fiscal year | news
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The company was therefore more cautious in its earnings forecast for the current 2022/23 financial year. Management is now assuming the lower end of the earnings forecast, as ProcterGamble announced in Cincinnati on Wednesday. The consumer goods group has so far announced earnings per share at the previous year’s level and, at best, growth of up to four percent.
Management is now assuming charges of $3.9 billion before taxes for the fiscal year (ended June). At the end of July it was still around 3.3 billion dollars. The strong dollar alone accounts for 1.3 billion dollars, expensive raw materials cost 2.4 billion dollars, it said. In terms of sales, Procter & Gamble is now assuming a decline of one to three percent. The expected organic growth, which excludes currency effects and portfolio changes, is likely to remain at three to five percent.
In the first quarter (ended September), sales rose by one percent to $20.6 billion, as the group with well-known brands such as Arieldetergent, Pampers diapers or Braun razors. Earnings per share fell 2 percent to $1.57. Procter & Gamble thus fared better than analysts had expected. Net income fell four percent to $3.9 billion.
Procter & Gamble shares are temporarily up 3.24 percent to $132.54 in NYSE trading.
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