Procter & Gamble Falls after Lowering Outlook

Shares of Procter & Gamble Co. (NYSE: PG) are falling about a percent in morning trade after the company lowered its fiscal 2012 profit Outlook. For the fiscal second quarter the company reported profits that fell 49% from a year ago. The company said its net income fell to $1.69 billion from $3.33 billion. Factoring in one time charges the company reported adjusted earnings per share of $1.10. This beat consensus estimates of $1.07 per share.

Revenue grew 4 percent to $22.1 billion, helped by higher prices. That was roughly in line with the expectations of analysts. The company had to take a one time charge in the quarter that rose from the company’s decision to write down the value of the appliances unit, where the biggest seller is electric shavers, and the salon professional unit.

The company warned that a strong dollar will negatively impact earnings going forward. The company now says adjusted earnings per share for 2012 will come in at $4.10 per share. This is below analyst consensus estimates that called for $4.17 per share in profits. The change in the EPS forecast is mainly due to foreign exchange, which will negatively impact earnings per share by $0.15 to $0.18. For the third quarter, earnings per share is expected in the range of $0.91 to $0.97 versus analyst estimates of $1.06 per share.

“We continue to make progress against our key business priorities in a difficult macroeconomic environment,” said Chairman of the Board, President and Chief Executive Officer Bob McDonald. “We delivered solid top-line growth and continued to accelerate productivity improvements to drive down costs. With the easing of commodity cost comparisons over the next two quarters, continued solid top-line growth and cost savings progress, we expect operating profit growth to accelerate in the second half of the fiscal year.”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.