Earnings Bring on FX Blame Game

P&G, Philip Morris cite currency as culprit for weaker second-quarter results.

Procter & Gamble Co. and Philip Morris International Inc. found a common culprit for weaker financial results in recent weeks: changes in currency values.

P&G, the world’s largest consumer products company, had initially been counting on foreign exchange to bolster results this year. Instead, Chief Executive Officer Robert McDonald told investors last month it’s turned into “a strong headwind” that may have cut about $3 billion in revenue and at least $400 million in profit from previous projections.

’Not Excuses’

P&G is focused on its top businesses, innovations and developing markets, as well as its $10 billion cost savings program, said Paul Fox, a company spokesman.

Philip Morris Cuts

Philip Morris cited the dollar’s strength in cutting its full-year earnings forecast to $5.10 to $5.20 a share on June 21, from an April prediction of $5.20 to $5.30. The New York-based cigarette maker, a spinoff of Altria Group Inc., gets all its revenue outside the U.S., including 30 percent from the European Union last year.

‘So Many Excuses’


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