Procter & Gamble Company (NYSE:PG)’s fiscal Q3 earnings dropped 16% as the consumer goods giant saw greater commodity costs and charges linked to its massive reorganization plan damp results.
The manufacturer of Bounty paper towels, Pampers diapers and other household staples is embarking on a key cost-cutting attempt to reduce its ranks and place a substantial focus on the emerging markets where it is seeing most of its sales development.
The firm announced in February it anticipates eliminating over 4,000 jobs and streamlining its gigantic marketing budget, planned cuts that follow 1,600 job losses previously scheduled for the existing fiscal year.
For the year onward, the company as well cut its complete-year profit estimate, calling for earnings of $3.82 to $3.88 per share. It had formerly forecast earnings in between $3.93 and $4.03 per share.
Looking to the existing quarter, the firm forecast earnings of 79 cents to 85 cents for the April to June period. Analysts surveyed by Thomson Reuters anticipated 93 cents.
For the quarter closed March 31, P&G announced a profit of $2.41 billion, or 82 cents per share, against a year-ago profit of $2.87 billion, or 96 cents per share. Excluding items such as restructuring costs, P&G posted core earnings of 94 cents per share.
Net sales rose 1.5% to $20.19 billion. The firm had estimated earnings of 89 cents to 95 cents per share on flat to 2% net sales expansion.
Gross margin lessened to 49.3% against 50.8%, showing greater commodity costs and other headwinds.
Procter and Gamble shares dropped -3.63% to $64.44 in Friday’s trading session. The stock moved up 4.5% over the previous year.
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