By Chelsey Dulaney
Procter & Gamble Co. warned Tuesday that its efforts to slim
down and speed sales growth by shedding brands are being
overshadowed by "unprecedented currency devaluations."
"Virtually every currency in the world devalued versus the U.S.
dollar, with the Russian Ruble leading the way," said Chief
Executive A.G. Lafley in a news release. "While we continue to make
steady progress on the strategic transformation of the
company...the considerable business portfolio, product innovation,
and productivity progress was not enough to overcome foreign
exchange."
P&G said it expects currency volatility to reduce its 2015
sales by 5% and profit by 12%.
P&G is planning to shed up to 100 of its brands as it
focuses its resources on higher-growth businesses.
P&G agreed in November to sell its billion-dollar Duracell
battery business to Warren Buffett's Berkshire Hathaway Inc. The
company said at the time that it was close to the sale of another
10 small brands, with information packets in the hands of potential
buyers. In December, P&G agreed to sell its Camay and Zest soap
brands to Unilever PLC.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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