Dollar in demand, euro slumps after U.S.-EU trade agreement
Investing.com - Procter & Gamble has slashed its annual core earnings outlook, as the consumer goods giant flags the impact from rapid changes to U.S. tariff policy.
The Febreze-maker said it now expects full-year underlying earnings per share growth to be between 2% to 4%, down from a prior outlook of 5% to 7%. The figure is seen at $6.72 to $6.82, below its earlier guidance and Bloomberg consensus expectations of $6.88.
Organic revenue is also tipped to increase by 2%, compared with a previous estimate of 3% to 5%.
"We’re making appropriate adjustments to our near-term outlook to reflect underlying market conditions while remaining confident in the longer-term growth prospects for our brands and the markets where we compete," said CEO Jon Moeller in a statement.
Economists have warned that higher tariffs introduced by U.S. President Donald Trump could fuel inflationary pressures and weigh on economic activity, while many businesses have flagged that the uncertainty around the levies is making it difficult to set investment plans.
Consumer sentiment has also showed signs of deteriorating against this backdrop, potentially signalling that shoppers could be poised to rein in spending on pricier items to protect their pocket books.
Shares in P&G edged lower in premarket U.S. trading on Thursday.