The Wall Street Journal
By PAUL ZIOBRO
Procter & Gamble Co. posted a sharply lower profit for its fiscal second-quarter reflecting higher commodity costs and a hefty write-down for past acquisitions, including its $57 billion megadeal for Gillette.The world's largest consumer-goods company also struck a downbeat tone for the current quarter citing a higher-than-anticipated tax rate, as well as commodity costs, and lowered its full-year earnings outlook due to the stronger U.S. dollar.
At the same time, P&G, whose products include Bounty paper towels, Gillette razors and Pampers diapers, still expects a strong finish to its fiscal year as commodity costs stabilize and higher prices continue to boost profits. Sales excluding the impact of currency translation, acquisitions and divestitures are now forecast to rise 4% to 5%, narrowed from 3% to 6%
For the quarter ended Dec. 31, P&G reported a profit of $1.69 billion, or 57 cents a share, down from a profit of $3.33 billion, or $1.11 a share, a year earlier. Stripping out a write-down of 50 cents a share related to the company's appliances and salon professional businesses, P&G reported core earnings of $1.10 a share for the quarter. .
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