Procter & Gamble CFO Jon Moeller told CNBC on Tuesday was the strong dollar the major factor in the company’s disappointing earnings report.
P&G reported before the opening bell adjusted quarterly earnings of $1.06 a share, 7 cents below estimates. Revenue of $20.16 billion also fell short of expectations, down 4 percent versus the prior year, including a negative 5 percentage-point impact from foreign exchange.
“There were definitely challenges, and FX was the prime one,” Moeller said in “Squawk Box” interview moments after the earnings were released. “We were able to accelerate and increase some savings work to offset part of that.”
P&G said its outlook for the year will remain challenging, with foreign exchange reducing fiscal 2015 sales by 5 percent and net earnings by 12 percent, or at least $1.4 billion after tax.
P&G derives roughly two-thirds of its revenue outside the United States, and the stronger dollar proves difficult for multinational corporations.
On the positive side, “we returned $4 billion in cash to shareholders,” Moeller said. “We tighten our strategy by divesting some businesses. We increased our productivity and cost profile.”
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