Procter & Gamble Co.
(PG) recently reaffirmed its earnings and sales outlook for the first quarter of fiscal 2010. Management also provided guidance for organic sales growth for the second quarter of 2010 and updated its forecast for fiscal 2010.

The world’s leading consumer goods giant continues to expect first-quarter recurring earnings in the range of 95 cents to $1 per share. However, foreign exchange translation is expected to hurt quarterly revenue by about 7%, leading to a net sales decline of 7% to 10% versus the prior year. Organic sales growth for the quarter is expected between zero and a negative 3%.

During the fourth quarter, P&G reported earnings of 80 cents per share and net sales of $18.66 billion. However, organic sales fell year over year.

Management confirmed its previous guidance of organic sales growth of 1% to 3% for fiscal 2010. The company said it sees net sales in the range of flat to up 3% compared with prior-year levels, including a foreign exchange impact of zero to negative 1%.

The company updated its earnings outlook to include the expected impact of the pharmaceutical divestiture to Warner Chilcott announced in August. The deal is expected to close by early November.

P&G now expects fiscal 2010 earnings in the range of $3.99 to $4.12 per share. This includes a one-time gain of 44 cents per share from the sale of its pharmaceutical business, which will be partially offset by 10 cents to 12 per share of earnings dilution related to the transaction.

Management also said it expects organic sales growth of 1% to 4% in the second quarter of fiscal 2010.

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