Procter & Gamble Posts $8 Billion Charge on Gillette Carrying Value

By Colin Kellaher

Procter & Gamble Co. (PG) Tuesday said it booked an $8 billion charge to reduce the carrying values of its Gillette shave-care business amid increased competition and lower foreign-currency values.

The consumer-products giant said it took the non-cash charge to adjust the U.S.-dollar carrying values of Gillette's goodwill and trade-name intangible assets.

P&G reported a fiscal fourth-quarter loss of $5.24 billion as a result of the charge.

P&G said the impairment mainly reflects significant currency devaluations that have occurred since it initially established the carrying values in 2005.

However, the company said its shave-care business has also been hurt by a contraction in the market for blades and razors and by increased competition.

P&G said Gillette "has consistently generated significant earnings and cash flow and continues to be a strategic business with attractive earnings, cash flow and growth opportunities."

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

July 30, 2019 07:36 ET (11:36 GMT)

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