* Q3 net profit falls 8.3 pct
* Q3 adj EPS $0.96 vs est $0.94
* Q3 net sales fall for 13th straight quarter
* Shares fall as much as 2 pct
(Adds CFO comment from conference call, updates shares)
By Richa Naidu
April 26 Procter & Gamble Co, maker of
Tide detergent and Gillette razors, reported an 8.3 percent fall
in third-quarter profit hurt by a strong dollar and slowing
economic growth that dampened consumer spending in several
Economic and political uncertainties - from higher gas
prices in the United States and higher utility prices in Saudi
Arabia to demonetization in India - triggered a sharp brake in
consumer spending during the quarter, the company said on a
post-earnings conference call.
Making matters worse, the U.S. dollar rose about 3.6
percent in the March quarter, on an average, compared with a
quarter earlier, spurred by investors betting on the so-called
A strong dollar makes U.S. goods less competitive abroad,
and foreign earnings less valuable when converted into dollars.
P&G, which sells its brands in more than 180 countries, gets
nearly half its revenue from Europe, China, Asia and the Middle
"We continue to deal with an unprecedented amount of
geopolitical disruption and uncertainty, which is affecting
market growth, currencies and commodities," Chief Financial
Officer Joe Moeller said on the call.
"We're aggressively driving cost savings to mitigate these
P&G has said it plans to save as much as $10 billion in
costs over the next five years, and use a chunk of those savings
to improve packaging, research and development, and sales
The company's stock, which has jumped 10.6 percent in the
past year, fell as much as 2 percent in morning trading on
Wednesday. The S&P 500 index has risen 6.6 percent in the same
SALES FALL AGAIN
The consumer goods giant, whose iconic brands include
Pampers, Head-and-Shoulders and Vicks, maintained expectations
of a mid-single digit rise in full-year adjusted earnings per
share growth, and a 2-3 percent increase in organic sales
Net income attributable to the Cincinnati, Ohio-based
company declined to $2.52 billion, or 93 cents per share, in the
three months ended March 31.
Adjusted earnings came in at 96 cents per share, beating
Wall Street estimates by 2 cents.
Organic sales in P&G's two largest businesses - fabric and
home care, and baby, feminine and family care - rose 1 percent.
Organic sales at its grooming business fell 6 percent.
Net sales fell about 1 percent to $15.61 billion - the
thirteenth straight quarter of declines. Analysts had been
looking for $15.73 billion, according to Thomson Reuters
P&G, which traces its roots to a family-run candle and soap
business in 1837, has been selling off unprofitable brands and
focusing on core brands such as Tide and Pampers to revive
It sold 41 of its brands, including Clairol and Wella, to
Coty Inc in a $12.5 billion deal in October.
(Reporting by Richa Naidu in Bengaluru; Editing by Sayantani