NEW YORK — Procter & Gamble Co. cut its fourth-quarter earnings and revenue forecasts, hurt by unfavorable foreign exchange rates and weakness in developed markets.
The 175-year old consumer-products company said Wednesday that it expects adjusted earnings between 75 cents and 79 cents per share, down from its previous estimate of 79 cents to 85 cents per share.
Revenue is anticipated to drop 1 percent to 2 percent compared with a prior outlook for a 1 percent to 2 percent increase. The new guidance implies revenue in a range of $20.45 billion to $20.66 billion.
Analysts polled by FactSet foresee earnings of 82 cents per share on revenue of $20.62 billion.
The company reaffirmed its restructuring plan, which involves cutting 5,700 jobs by the end of fiscal 2013 and saving $10 billion by the end of the fiscal 2016.
The Cincinnati-based company employs 129,000 around the globe, including about 57,000 in non-manufacturing positions, so the 5,700 positions targeted for elimination represent 10 percent of P&G’s non-manufacturing jobs worldwide.
A significant portion of those non-manufacturing jobs are in Southwest Ohio: P&G employs about 2,000 in Mason and 350 in West Chester Twp.
The company also employs more than 12,000 total in its Cincinnati headquarters and at three other research and development campuses in Hamilton County.
P&G says that it will prioritize investments in its biggest product innovations, its biggest, most profitable markets and in its biggest emerging countries. It also plans to keep investing in newly entered markets.
The Cincinnati-based company has experienced stagnant growth in North America and has concentrated more on emerging markets, which it said in April would account for 37 percent of its annual sales by the end of the fiscal year.
“We are making the necessary adjustments to our growth strategy to increase focus on our core business and to achieve more balanced growth across geographies, product categories and the top and bottom lines,” Chairman, President and CEO Bob McDonald said in a statement.
For fiscal 2013, P&G expects adjusted earnings to be up by a mid-to-high single digits percentage rate. The company said it will give an update to the guidance when it reports its fiscal 2012 results on Aug. 3.
Its shares fell $1.46, or 2.4 percent, to $60.75 in premarket trading. Its shares have traded in a 52-week range of $57.56 to $67.95.
Thank you for reading the Springfield News-Sun and for supporting local journalism. Subscribers: log in for access to your daily ePaper and premium newsletters.
Thank you for supporting in-depth local journalism with your subscription to the Springfield News-Sun. Get more news when you want it with email newsletters just for subscribers. Sign up here.