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Procter & Gamble Company (PG - Analyst Report) recently reduced its third quarter and fiscal 2013 earnings expectations following headwinds from Venezuela’s currency devaluation.

The consumer giant lowered its previously provided fiscal 2013 core earnings guidance by 3 cents from a range of $3.97 – $4.07 to $3.94 – $4.04 to reflect the impact of the Venezuelan government’s recently announced plan to devalue its currency. In addition, P&G expects to record $200 million–$275 million (6 cents to 7 cents per share) in one-time charges from revaluation of its local balance sheet at the new exchange rate.

In the third quarter, the company expects to earn 90 cents to 96 cents, down from prior expectations of 91 cents to 97 cents, following the Venezuelan move.

P&G, which reported excellent second quarter fiscal 2013 results last month, maintained its sales outlook for fiscal 2013 as well as the third quarter, which was announced with its second quarter results.

Organic sales are expected to grow in a range of 3% to 4%. Net revenue is expected to rise between 1% and 2%. For the third quarter, the company expects both net and organic revenues to range between 3% and 4%.

Fiscal 2012 was a tough year for P&G and the company plans to implement some meaningful changes to re-accelerate its top and bottom-line growth in keeping with its peer companies.

P&G plans to improve results in developed markets while maintaining momentum in the developing nations. The company is focusing resources on the 40 largest and most profitable businesses, most of which are in developed markets. These businesses account for about 50% of sales and 70% of operating profit. The company is also focusing on driving its 20 biggest innovations like Tide Pods, Always Radiance, Bounty Trap & Lock and Bounty Unstoppables in more markets in fiscal 2013. Moreover, the company is concentrating on its 10 most important developing markets.

In addition, the company has implemented costs savings and productivity improvement initiatives in order to improve margins. All these efforts are bearing fruit as evident from 2 back-to-back solid quarterly results in the first half of fiscal 2013.

P&G carries a Zacks Rank #2 (Buy) following its solid second quarter results, which beat both the company as well as Zacks’ expectations. Other consumer staples companies which are currently worth considering include ConAgra Foods, Inc. (CAG - Analyst Report) – Zacks Rank #1 (Strong Buy), Kellogg Company (K - Analyst Report) - Zacks Rank #2 (Buy) and Church & Dwight Co. Inc. (CHD - Snapshot Report) - Zacks Rank #2 (Buy).

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