This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

P&G Updates Earnings Projections Following Venezuelan Currency Devaluation

Stocks in this article: PG

The Procter & Gamble Company (NYSE:PG) provided an update of its fiscal year 2013 earnings per share outlook following the Venezuelan government’s announced intention to devalue its currency (bolivar fuerte). The official exchange rate is now bolivares fuertes 6.30 per United States dollar, effective with the publication of the Official Gazette on February 13, 2013. It was also announced that the currency market administered by the central bank known as SITME will be eliminated. SITME transactions were previously valued at 5.30 bolivares fuertes per U.S. dollar.

P&G said it expects to incur one-time charges in the range of $200 million to $275 million after-tax, or $0.07 to $0.09 per share, based on its preliminary assessment of revaluing the local balance sheet at the new exchange rate. The final impact will be dependent on confirmation of final balance sheet positions at the date of the devaluation. The Company said it will recognize the one-time charges as non-core items in its presentation of fiscal year 2013 results.

In addition, the Company said there will be ongoing financial impacts related to the translation of local financial statements at the new exchange rate and inter-currency operational transactions, such as importation of finished products and raw materials. P&G estimates these impacts will reduce fiscal year 2013 core earnings by approximately $0.03 per share. P&G estimates the annualized impact on core earnings to be in the range of $0.06 to $0.07 per share. These estimates assume that the 6.30 exchange rate will apply to all future transactions and that the Company will have full access to currency at this rate necessary to operate its Venezuelan business. These estimates also assume current pricing regulations continue to be enforced.

Fiscal Year 2013 EPS Guidance

P&G adjusted its core earnings per share guidance for the year to a range of $3.94 to $4.04 from a prior range of $3.97 to $4.07 to reflect the $0.03 per share operating impact on core earnings.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,617.81 +260.94 1.50%
S&P 500 2,039.93 +27.04 1.34%
NASDAQ 4,707.4120 +63.10 1.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs