The Rising Influence of Rising Affluence

[DewDiligence]

PG issued preliminary guidance for FY2013* and lowered FY4Q12 EPS guidance by 4 cents:

http://www.sec.gov/Archives/edgar/data/80424/000008042412000046/deutschebankpressrelease.htm

Organic sales [excluding acquisitions, divestitures, and currency] are expected to increase in the range of two to four percent. Core [non-GAAP] earnings per share are expected to be in-line to up mid-single digits percentage versus fiscal 2012 results.

P&G noted that foreign exchange, based on early-June spot rates, will negatively impact fiscal 2013 EPS growth by approximately four percentage points. Excluding foreign exchange impacts, P&G’s core earnings per share outlook equates to approximately mid-to-high single digit growth.

PG also issued non-GAAP EPS guidance for FY4Q12 (the current quarter) of $0.75-0.79, four cents below the prior range of $0.79-0.83; the reduction was due to market softness and currency effects. With the $0.04 reduction for FY4Q12 announced today, FY2012 non-GAAP EPS guidance is now $3.79-3.84.

All told, not a pretty picture, although PG can't be blamed for the negative effects of the strong US Dollar vs the Euro and other international currencies.

*The fiscal year ends on June 30 of each year.