Procter & Gamble (PG) lowered its April-June sales forecast to 2-3% from the earlier expected 4-5% causing the stock to drop $2.06 or 3.3% on heavy volume in morning trade on NYSE. The company also lowered its expected EPS range to $0.75 to $0.79 per share, compared to a prior range of $0.79 to $0.85. The company expects the softness in earnings to last into the 2013, when it expects sales to grow in the 2-4% range.
These revisions are primarily driven by slower than anticipated top-line growth, tough competition for maintaining market share in developed markets and adverse foreign exchange impact.
Bob McDonald, P&G’s chairman of the board, president and chief executive officer plans to address these concerns by “making the necessary adjustments to our growth strategy to increase focus on our core business and to achieve more balanced growth across geographies, product categories and the top and bottom lines.”
Warren Buffett is the largest shareholder of PG among the 400 hedge funds we are tracking. Berkshire Hathaway's position in the stock was worth $4.9 billion at the end of March. This means Warren Buffett lost $150 million today after the 3.3% loss in PG shares. D.E. Shaw's loss approached $10 million and billionaire Ken Fisher's loss was nearly $9 million.