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Feb. 20, 2020, 9:41 a.m. EST

Procter & Gamble warns that coronavirus will have material impact on March quarter earnings

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By Ciara Linnane

Consumer goods giant Procter & Gamble Co. /zigman2/quotes/202894679/composite PG +0.63% warned Thursday that the coronavirus that broke out in Wuhan, China late last year is creating supply and demand challenges in China, its second biggest market, with many stores closed or operating reduced hours. The company is expecting the virus to materially impact earnings for the January to March quarter in China and for the overall company. "We continue to believe, based on what we know today, that our fiscal year top and bottom line guidance ranges-and I emphasize ranges-remain the right ones," Chief Operating Officer and Chief Financial Officer Jon Moeller said in a statement. " We will continue to monitor the situation and obviously update you if and when a different reality becomes apparent." Some China demand has shifted online in the face of shuttered stores, but supply of delivery operators is limited. Outside of China, the company is being hurt by a significant slowdown in traffic to department stores in Asian cities and towns. The company has 387 suppliers in China that ship to it globally more than 9,000 materials, impacting about 17,600 different finished products. Shares rose 0.7% in early trade, and have gained 27% in the last 12 months, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.17% has gained 13% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.06% has gained 22%.

/zigman2/quotes/202894679/composite
US : U.S.: NYSE
$ 133.55
+0.84 +0.63%
Volume: 4.93M
Aug. 7, 2020 4:02p
P/E Ratio
26.92
Dividend Yield
2.37%
Market Cap
$331.16 billion
Rev. per Employee
$727,304
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,433.48
+46.50 +0.17%
Volume: 324.93M
Aug. 7, 2020 5:10p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,351.28
+2.12 +0.06%
Volume: 2.28B
Aug. 7, 2020 5:10p
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