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Turmoil in Emerging Market Forces P&G to Lower Earnings Forecast

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The consumer products giant Procter & Gamble Company (NYSE:PG) will lower its earnings forecast for 2014 as a result of fluctuation in currencies in emerging markets and Venezuela’s devaluation monetary policy change. Procter & Gamble has substantial operations in a host of emerging markets. Devaluation of currencies in emerging markets depresses earnings because the conversion of the local currencies to the U.S. dollars is basically worthless. Procter & Gamble expects earnings to grow between three to five percent in 2014 compared to the prior outlook of five to seven percent. Shares are slight down this morning.