Procter & Gamble cuts 4Q profit, revenue outlook
Wednesday, June 20, 2012
NEW YORK (AP) — Procter & Gamble Co. on Wednesday lowered its fourth-quarter earnings and revenue forecasts, the latest company to sound warning bells about slowing global economic growth.
P&G, which makes an array of everyday goods ranging from Tide detergent to Gillette razors, said it is cutting the forecast because of unfavorable foreign exchange rates, continued slow growth in developed markets and a slowdown of growth in China.
Many U.S. companies have looked to emerging markets as economic growth in North America and Europe has slowed. But P&G’s and others’ warnings show that expanding abroad is a complicated task for even the largest of companies.
Earlier this month McDonald’s said economic volatility, particularly in Asia, is pressuring its second-quarter results. Package delivery company FedEx Corp. on Tuesday said the slowing global economy is expected to crimp its growth over the next 12 months. Its rival UPS in April similarly said slowing Asian shipments hurt quarterly results.
And a wide range of companies including software maker Adobe Systems Inc., medical device maker Synergetics USA and industrial products maker Actuant Inc. have said uncertainty in Europe and slower growth in Asia are hurting.
A few months ago, Europe’s economy seemed more positive, Moody’s Chief Economist John Lonski said. But that view has darkened in recent months as uncertainty over debt crises in countries such as Spain and Greece dragged on longer than expected. That in turn has led to a slowdown in emerging markets such as Brazil, India and China.