Procter & Gamble's Revenue Declines on Currency Hits

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.

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