The company also said it will take between 7 and 9 cents per share in one-time charges this year because of the devaluation. Procter & Gamble’s fiscal year ends June 30.
Procter & Gamble now expects annual profit of $3.94 to $4.04 per share excluding one-time items. That’s down from its previous estimate of $3.97 to $4.07 per share. The company expects to earn between 90 and 96 cents per share in its fiscal third quarter, down from 91 to 97 cents per share.
Analysts expected net income of $4.07 per share for the year and 97 cents per share in the third quarter, according to FactSet.
Procter & Gamble’s products, which include Tide detergent and Gillette razors, are in 98 percent of U.S. households.
On Wednesday Venezuela devalued its currency for the fifth time in a decade. The new government-set rate of 6.30 bolivars to the dollar is down from the previous rate of 4.30 bolivars to the dollar. Venezuela relies heavily on imports and on oil sales in dollars, and the government hopes to reduce the amount of money it needs to borrow.
Drugmaker Merck & Co. said Wednesday that the devaluation will reduce its net income by about $200 million in 2013. Consumer products maker Colgate-Palmolive Co. says the devaluation will cost it $120 million in revenue this year, and Avon Products Inc. expects $100 million in charges connected to the move. The costs reflect write-downs, deferred taxes, and charges related to accounting for some non-monetary assets.