CINCINNATI (AP) — Procter & Gamble's second-quarter earnings sank 31 percent as the strong U.S. dollar cut into the performance of the world's largest consumer products maker.
The Cincinnati company said Tuesday that exchange rates will remain a challenge well into fiscal 2015, especially in the second half of its year. Overall, it expects foreign exchange to chop fiscal 2015 earnings by 12 percent and reduce its topline by 5 percent.
"We have and will continue to offset as much of this currency impact as we can through productivity driven cost savings," Chairman and CEO A.G. Lafley said in a statement from the company.
The company's stock slid almost 3 percent before markets opened Tuesday.
In the quarter that ended Dec. 31, P&G earned $2.37 billion, or 82 cents per share. That compares with earnings of $3.43 billion, or $1.18 per share, the previous year.
Earnings, adjusted to account for discontinued operations and non-recurring costs, were $1.22 per share.
Revenue fell more than 4 percent to $20.16 billion.
Analysts expected, on average, earnings of $1.14 per share on $20.7 billion in revenue, according to Zacks Investment Research.
Shares of Procter & Gamble Co. slid $2.31, to $87.27 in premarket trading. The stock price climbed nearly 12 percent last year, outpacing the 11.4 percent gain of the Standard & Poor's 500 index.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PG at http://www.zacks.com/ap/PG
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