P&G; Issues Profit Warning, Cites Turkey Crisis

Procter & Gamble Co., the largest U.S. maker of consumer packaged goods, cut its earnings estimates for the second half of 2001, citing a financial crisis in Turkey, its 12th-largest market. The surprise warning sparked a sell-off in the stock of the maker of Tide detergent, Crest toothpaste and Pampers diapers. P&G; is the first major U.S. company to disclose that last week’s float of the Turkish currency will hurt its results. P&G; said it expects profit of 69 cents to 72 cents a share for its fiscal third quarter ending in March, possibly missing the consensus estimate of 72 cents compiled by First Call. In Turkey, P&G; is the market-share leader in laundry detergent, dish soap, hair care, feminine care and diapers, with margins above the company average, a spokesman said. The region contributes about $400 million of P&G;’s $40 billion in annual sales. Shares of Cincinnati-based P&G; fell $3.92 to close at $71.11 on the NYSE.