PARIS – Procter & Gamble Co. cut profit projections for its current quarter and fiscal year 2013 after the Venezuelan government last week devalued its currency, the bolivar, by 32 percent.
The company also said it expects to incur one-time charges as a result.
The Cincinnati-based maker of Head & Shoulders, Cover Girl, Tide and Pampers estimates the one-time, after-tax charges will be in the range of $200 million to $275 million, or 7 cents to 9 cents per share, according to preliminary assessments. P&G said it will recognize the charges as non-core items in its fiscal 2013 results.
“There will be ongoing financial impacts related to the translation of local financial statements at the new exchange rate and inter-currency operational transactions, such as importation of finished products and raw materials,” the company said in a statement, adding it estimates such impacts will reduce its 2013 core earnings by about 3 cents per share, resulting in income of $3.94 to $4.04 per share.
Meanwhile, P&G lowered its earnings-per-share guidance for its January-through-March quarter to between 90 cents and 96 cents, from a prior estimate of 91 cents to 97 cents per share.