Procter & Gamble Co. released upsetting results for their fourth-quarter, following currency fluctuations. CFO Jon Moeller appeared on CNBC to discuss the consumer product company’s quarterly results and the impending currency challenges.
Before the opening bell, P&G reported adjusted quarterly earnings of $1.06 a share, falling seven cents below the $1.13 consensus estimates. The company said that net income dropped 31 percent to 82 cents a share for its fiscal second quarter, which ended December 31.
Procter & Gamble stated it does not expect sales or profit to grow in 2015, noting the surge in the US dollar, which is hurting the strength of foreign revenue. The world’s largest FMCG maker said international exchange instability will negatively affect its full-year sales by five percent and damage net profit.
Overall sales are expected to be down nearly four percent, and overall core earnings are also predicted to be flat by a low single-digit percentage. Previously, P&G predicted growth in the mid single digits for both. This drop is the result of a two percent increase as its fabric and home care unit was offset by two percent declines in grooming, healthcare, hair and personal care, and beauty.
CFO Jon Moeller pointed out, “This is the most significant fiscal year currency impact we have ever incurred,” also noting that focusing on strengthening P&G’s regional supply chains will help boost margins and reduce the effect of currency instability.
The group also pointed out that it sold, consolidated or discontinued 35 brands, beginning in August 2014, when it released a new strategy focused on strengthening profits and re-boosting sales.
In the meantime, DuPont, Bristol-Myers and Pfizer all announced lower-than-expected forecasts as well. These reports are partly due to the dollar’s strength. The US Dollar Index rose to its highest since 2003, adding to this year’s four percent gain.
Procter & Gamble CFO Jon Moeller has been a crucial part of P&G’s leadership team for nearly ten years and brings with him 20 years of strong business and financial experience. He joined P&G in 1988 and has assumed various financial positions throughout the company, including vice president.