Procter & Gamble's 3Q revenue weighed down by strong dollar; vows cost cuts and price hikes

MarketsAssociated Press

Procter & Gamble took a hit from the strong dollar, like almost all U.S. companies with business overseas, pushing third-quarter revenue below expectations.

Because of the unfavorable currency environment, the company believes revenue for the year will slide 5 percent to 6 percent. It said Thursday that it still expects adjusted earnings to be in line to down low single digits compared with last year.

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Procter & Gamble Co., which makes everything from Tide detergent to Crest toothpaste, earned $2.15 billion, or 75 cents per share for the period ended March 31. That compares with $2.61 billion, or 90 cents per share, last year.

Adjusted earnings were 92 cents per share, meeting the expectations of analysts polled by FactSet.

Revenue for the Cincinnati company declined to $18.14 billion from $19.64 billion, short of the $18.42 billion Wall Street had expected.

A stronger dollar can hurt companies that do a large share of their business overseas because sales in other countries translate back into fewer dollars.

Chairman and CEO A.G. Lafley said in a printed statement that Procter & Gamble Co. will offset the stronger dollar over time through higher prices and by lowering costs.

The biggest sales decline during the quarter was in the beauty, hair and personal care segment, which posted an 11 percent drop. Sales for the fabric care and home care unit fell 9 percent, while sales for the baby, feminine and family care division slipped 6 percent.

Shares fell 19 cents to $82.90 before the market open.