Procter & Gamble cuts 4Q profit, revenue outlook

[Omaha Steve]

Source: AP-Excite

By MAE ANDERSON and MICHELLE CHAPMAN

NEW YORK (AP) - Procter & Gamble Co. (PG) 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.

FULL story at link.



Read more: http://apnews.excite.com/article/20120620/D9VH3G2O0.html

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In this Jan. 25, 2011, file photo, flags from several countries that Procter & Gamble Co. does business in fly outside one of P&G's corporate headquarters buildings in Cincinnati. Procter & Gamble Co. on Wednesday, June 20, 2012, lowered its fourth-quarter earnings and revenue forecasts, hurt by unfavorable foreign exchange rates, continued slow growth in developed markets and a slowdown of growth in China. (AP Photo/Al Behrman, File)

[Sherman A1]

1. It is also possible that they are pricing themselves out of the market

People are shopping down from many name brands and Tide for example has become expensive enough to now be a target of shoplifters & organized theft rings (just as razor blades & baby formula have long been). You will see everything from out right shoplifting to individuals who purchase the product, replace or dilute it then return it to a store (with or without a receipt) for a refund or exchange. There are also groups producing counterfeit coupons for these higher ticket products, scamming the retailers and stealing by deceit.

Who would have ever thought of laundry detergent as a high theft item?