AP

P&G starts fiscal year strong, but soaring dollar will sting

Oct 19, 2022, 6:38 AM | Updated: 7:02 am

Procter & Gamble exceeded $20 billion in sales during the fiscal first quarter but citing the strong dollar, it said Wednesday that it expects to post its first annual sales decline since 2017.

U.S companies that do a lot of business overseas are getting hammered by a surge in the value of the dollar because they must convert overseas sales back into dollars before reporting their financial performances in the U.S. Not only does a strong dollar decrease the value of those sales, it also gives foreign competitors a price edge in the United States.

That story has played out repeatedly this week as earnings season kicks into high gear. Hasbro and Johnson & Johnson were among the U.S. multinationals registered some currency exchange pain.

The U.S. currency — now worth more than a euro for the first time in 20 years — is hitting U.S. companies almost every company that does lot of business overseas, whether they make toy cars or real ones. Tesla posts earnings after the bell Wednesday.

The dollar is up 18% this year and last month hit a 20-year high against a basket of key global currencies, according to the benchmark ICE U.S. Dollar Index.

Procter & Gamble Inc. expects sales for all of 2023 to fall between 1% and 3% compared with this year, with foreign exchange a six-percentage point headwind to sales growth. The company had previously projected sales to rise as much as 2%.

The company stuck to expectations for 2023 earnings per share growth of flat to up 4%, but told investors Wednesday that because of currency exchange rates, it’s likely to be at the lower end of that range.

Procter & Gamble earned $3.94 billion, or $1.57 per share, in the quarter, or about 2 cents better than expected, according to a survey of industry analysts surveyed by Zacks Investment Research.

Quarterly revenue at the Cincinnati company edged up 1% to $20.61 billion despite a 6% impact on sales due to the dollar.

Shares rose about 2% at the opening bell.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Republican presidential candidates, former New Jersey Gov. Chris Christie, left, talking with forme...

Associated Press

The GOP debate field was asked about Trump. But most of the stage’s attacks focused on Nikki Haley

The four Republican presidential candidates debating Wednesday night mostly targeted each other instead of Donald Trump.

4 days ago

Law enforcement officers head into the University of Nevada, Las Vegas, campus after reports of an ...

Associated Press

Police say 3 dead, fourth wounded and shooter also dead in University of Nevada, Las Vegas attack

Police said a suspect was found dead Wednesday as officers responded to an active shooter and reports of multiple victims at UNLV.

4 days ago

President Joe Biden's son, Hunter Biden, leaves after a court appearance, July 26, 2023, in Wilming...

Associated Press

Republicans threaten contempt proceedings if Hunter Biden refuses to appear for deposition

House Republicans are threatening to hold Hunter Biden in contempt if he does not show up this month for a closed-door deposition.

4 days ago

Sen. Tommy Tuberville, R-Ala., listens to a question during a news conference, March 30, 2022, in W...

Associated Press

Tuberville is ending blockade of most military nominees, clearing way for hundreds to be approved

Sen. Tommy Tuberville announced Tuesday that he's ending his blockade of hundreds of military promotions, following heavy criticism.

5 days ago

An employee works inside the Hanwha Qcells Solar plant on Oct. 16, 2023, in Dalton, Ga. On Tuesday,...

Associated Press

US job openings fall to lowest level since March 2021 as labor market cools

U.S. employers posted 8.7 million job openings in October, the fewest since March 2021, in a sign that hiring is cooling.

5 days ago

Megyn Kelly poses at The Hollywood Reporter's 25th annual Women in Entertainment Breakfast, Dec. 7,...

Associated Press

The fourth GOP debate will be a key moment for the young NewsNation cable network

By airing the fourth Republican presidential debate, NewsNation network will almost certainly reach the largest audience in its history.

5 days ago

Sponsored Articles

...

Dierdre Woodruff

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

Follow @KTAR923...

The 2023 Diamondbacks are a good example to count on the underdog

The Arizona Diamondbacks made the World Series as a surprise. That they made the playoffs at all, got past the Milwaukee Brewers in the NL Wild Card round, swept the Los Angeles Dodgers in the NLDS and won two road games in Philadelphia to close out a full seven-game NLCS went against every expectation. Now, […]

Follow @KTAR923...

West Hunsaker at Morris Hall supports Make-A-Wish Foundation in Arizona

KTAR's Community Spotlight this month focuses on Morris Hall and its commitment to supporting the Make-A-Wish Foundation in Arizona.

P&G starts fiscal year strong, but soaring dollar will sting