P&G Takes $8 Billion Write Down on Gillette

Procter & Gamble is taking a one-time, $8 billion write down related to the Gillette business, the company said Tuesday. Chief financial officer Jon Moeller said the Gillette business has faced significant currency impacts which, combined with lower shave frequency, caused P&G to take a one-time, non-cash accounting write down. He also acknowledged new competitors in the shaving space, though he claimed they had “much less of an impact” on the Gillette business than currency and shaving trends. Moeller noted that Gillette’s Skin Guard launch, which is meant to help men shave with less skin irritation, is off to a strong start. “That’s been one of the reasons men are shaving less frequently is because it’s irritating to their skin,” Moeller said Tuesday morning. P&G is hoping Skin Guard can bring men back into the shave category, he noted. “This is still an incredibly valuable asset,” he added of the brand, which P&G acquired in 2005 for $57 billion. Moeller hopped on a call with journalists Tuesday morning after P&G released its financial results for the fourth fiscal quarter and fiscal year. Fourth quarter net sales were $17.1 billion, up four percent from the prior -ear period, with a diluted net loss per share of $2.12,

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