Procter & Gamble Warns of 3Q Coronavirus Hit; Backs FY20 Guidance
20 Februar 2020 - 04:19PM
Dow Jones News
By Colin Kellaher
Procter & Gamble Co. on Thursday warned that the coronavirus
epidemic in China will have a material impact on its fiscal
third-quarter sales and earnings, but the consumer-products giant
is standing by its fiscal-year 2020 forecasts.
P&G said it is dealing with demand and supply challenges
associated with the Covid-19 epidemic in China, the company's
second-largest market in terms of sales and profits.
The company said store traffic is down considerably in China,
with many stores closed or operating with reduced hours, and it
said the supply of delivery operators and labor is limited.
P&G said it sources more than 9,000 materials, affecting
roughly 17,600 finished product items, from 387 suppliers in China
who are faced with their own challenges in resuming operations.
P&G last month raised its fiscal 2020 sales growth forecast
to 4% to 5% and its adjusted earnings growth guidance to 8% to
11%.
"We continue to believe, based on what we know today, that our
fiscal year top and bottom line guidance ranges--and I emphasize
ranges--remain the right ones," said Jon Moeller, the company's
chief operating and chief financial officer. "We will continue to
monitor the situation and obviously update you if and when a
different reality becomes apparent."
P&G shares edged up 0.6%, to $126.23, in early trading
Thursday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 20, 2020 10:04 ET (15:04 GMT)
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