P&G Q3 Profit Down - Quick Facts

(RTTNews) - Procter & Gamble Co. (PG) reported that its third-quarter net earnings attributable to the company decreased to $2.153 billion from the prior year's $2.609 billion, with earnings per share declining to $0.75 from $0.90 last year.

Core earnings per share, which exclude non-core restructuring charges and results from discontinued operations, were $0.92, a decrease of eight percent versus the prior year, including a negative 18 percentage point, or negative $0.18 per share, impact from foreign exchange. Core earnings per share were up ten percent on a currency-neutral basis. Reported earnings per share from continuing operations were $0.85, which include $0.07 per share of non-core restructuring charges. Analysts polled by Thomson Reuters expected the company to report earnings of $0.92 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales were $18.1 billion, a decrease of eight percent versus the prior year period, including a negative eight percentage point impact from foreign exchange and a negative one percentage point impact from minor brand divestitures. Organic sales grew one percent. Wall Street expected revenues of $18.49 billion for the quarter.

As a result of the previously announced divestiture of its Duracell battery business to Berkshire Hathaway, expected to close by the end of calendar year 2015, and in accordance with the applicable accounting guidance, the results of the batteries business are presented as discontinued operations.

During the third quarter, the Company took a non-cash charge of approximately $300 million after-tax, or $0.10 per share, included in discontinued operations, to adjust the carrying values of the batteries business to reflect a decline in the value of the P&G shares it expects to receive from the share-based transaction with Berkshire Hathaway. The final value of the transaction, and the related carrying value of the batteries business, will be based on P&G's share price at the closing date.

P&G said it now expects organic sales growth of low single digits for the fiscal year 2015. Net sales growth is expected to be down five to six percent versus the prior fiscal year, including a negative six to seven percent headwind from foreign exchange and a one percent impact from minor brand divestitures.

P&G maintained its fiscal 2015 outlook for currency-neutral core earnings per share growth in the double-digits. The Company also maintained guidance for Core EPS to be in-line to down low single digits versus prior year Core EPS of $4.09, consistent with analysts' current consensus estimate. All-in GAAP diluted net earnings per share are now expected to be down approximately 21 percent to 22 percent versus the prior year. This includes approximately $0.83 per share of non-core costs, primarily from $0.20 per share of non-core restructuring charges and $0.57 of net impacts from discontinued operations.

Wall Street currently is looking for fiscal year 2015 earnings of $3.98 per share on annual revenues of $77.31 billion.