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)

Copyright (c) 2020 Dow Jones & Company, Inc.
Procter and Gamble (NYSE:PG)
Historical Stock Chart
Von Feb 2024 bis Mär 2024 Click Here for more Procter and Gamble Charts.
Procter and Gamble (NYSE:PG)
Historical Stock Chart
Von Mär 2023 bis Mär 2024 Click Here for more Procter and Gamble Charts.