Procter & Gamble Sees Sales and Earnings Gains Hit By Strong Dollar

Procter & Gamble reported its fiscal first-quarter results this morning, with the consumer-products giant reporting an 8% gain in diluted net earnings per share on a 2% overall rise in revenue. But results were hit by sharp negative currency impacts from the strong dollar, which pulled down core earnings-per-share by $0.09 and wiped out what would have been an 8% increase on a currency-neutral basis.

Organic sales and volume rose by 4%, with two of Procter & Gamble's business segments providing the strongest results. In its Fabric Care and Home Care segment, 6% growth came from each product category, with new distribution for its Duracell batteries contributing to overall success. The Baby, Feminine, and Family Care saw similar 6% growth, with P&G citing new product releases in North America and stronger baby-care growth in emerging markets.

CEO A.G. Lafley characterized P&G's results as "consistent with our plans and expectations, putting us on track to deliver our goals for the fiscal year." He cited market-share gains, coming new product launches, and cost-cutting measures as part of P&G's overall positive momentum.


Yet Procter & Gamble merely reiterated its past guidance for the full fiscal 2014 year, disappointing investors who'd hoped for a rosier view of the consumer giant's future. It sees foreign-currency impacts of about 2% continuing to offset organic sales growth of 3% to 4%, and core earnings-per-share growth of 5% to 7% for the fiscal year. As of 8 a.m. EDT, Procter & Gamble shares were higher by 0.1% in pre-market trading.

P&G will have a conference call at 8:30 a.m. EDT to discuss the results in further detail. For more information, visit the Procter & Gamble investor relations webcast site.

The article Procter & Gamble Sees Sales and Earnings Gains Hit By Strong Dollar originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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