Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Procter & Gamble Co    PG

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Procter & Gamble soars past profit expectations

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/25/2012 | 05:11pm CEST

Procter & Gamble Co's (>> The Procter & Gamble Company) profit rose more than expected, indicating that the world's largest household products maker is making progress after coming under pressure from activist investor William Ackman, and its shares soared to the highest level in four years.

Procter & Gamble Co's (>> The Procter & Gamble Company) profit rose more than expected, indicating that the world's largest household products maker is making progress after coming under pressure from activist investor William Ackman, and its shares soared to the highest level in four years.

Rival Colgate-Palmolive Co (>> Colgate-Palmolive Company), meanwhile, said it plans to cut about 6 percent of its workforce over the next four years as it strives to operate more nimbly as economies slow in many countries. Its quarterly profit matched expectations.

Several consumer goods makers are trimming jobs, including P&G, as concerned consumers hold off on some purchases and growth slows in major markets such as China.

P&G is on track to cut 4,200 jobs by the end of October on its way to eliminating 5,700 jobs by the end of its fiscal year. On Wednesday, Kimberly-Clark Corp (>> Kimberly Clark Corp) said it would eliminate 1,300 to 1,500 jobs as it leaves some low-margin businesses in Europe. Colgate's plans, including moving away from single-country units toward regional hubs, should lead the toothpaste maker to trim about 2,300 jobs by the end of 2016.

Shares of P&G rose 4 percent to $70.83 on Thursday, their highest level since October 2008. Colgate's shares fell 2.9 percent to $103.44.

"It wouldn't surprise me if we're seeing some people saying it is time to sell some Colgate, buy some Procter, given Colgate's outperformance year to date," said JP Morgan analyst John Faucher, who has a "neutral" rating on Colgate and an "overweight" rating on P&G.

Colgate's shares had risen 15 percent this year through Wednesday, while P&G shares were up less than 1 percent.

DIAPER DISRUPTION

P&G is cutting costs and narrowing its focus on key markets, products and countries. The company's goals as well as Chairman and Chief Executive Bob McDonald have been under intense scrutiny after Ackman bought shares this summer.

P&G did not raise its key profit forecast for the fiscal year that began in September, in part because it plans to ramp up marketing support behind new products being introduced later in the year, and because it has to spend more to get an absorbent material for Pampers diapers, its largest brand, following a plant explosion in Japan.

P&G earned $1.06 per share in the fiscal first quarter on a "core" basis, which excludes charges, up from $1.01 per share a year earlier. Analysts, on average, expected it to earn 96 cents per share, according to Thomson Reuters I/B/E/S.

Earnings from continuing operations fell to $2.85 billion, or 96 cents per share, from nearly $3.0 billion, or $1.01 per share, a year earlier.

Ackman, whose Pershing Square Capital Management is P&G's 10th-largest shareholder, has publicly blamed P&G's top brass for high costs and declining revenue while saying that he understands the board wants to give McDonald time to repair years of damage.

P&G is putting a fresh focus on productivity, including adding a new global officer of productivity and organization transformation who will report to McDonald, as well as creating a productivity council of senior managers.

P&G's net sales in the quarter fell 4 percent to $20.74 billion, below analysts' target of $20.78 billion. Organic sales, which strip out the impact of acquisitions, divestitures and foreign exchange, rose 2 percent, at the high end of the company's forecast.

P&G still expects to post core earnings per share of $3.80 to $4 this fiscal year. Analysts' average forecast for the year is $3.91 per share.

For the current second quarter, P&G forecast core earnings of $1.07 to $1.13 per share, with organic sales up 1 percent to 3 percent.

P&G is dealing with the impact of a plant explosion in Japan that supplies a key material for Pampers diapers. Pampers is the company's largest single brand, accounting for more than $10 billion in annual sales.

There was an explosion at a Nippon Shokubai Co (>> NIPPON SHOKUBAI) factory in September that produces a key material for P&G's Pampers diapers. Nippon Shokubai is one of the world's biggest makers of acrylic acid, the main ingredient of a resin called SAP, which is used in diapers.

P&G has found other sources of the material and while any impact to consumers should be "minor," it has to spend more get the supplies it needs, said Chief Financial Officer Jon Moeller.

Kimberly-Clark, which makes Huggies diapers, said on Wednesday that it was not affected by the explosion since Nippon Shokubai was not its supplier.

Colgate earned $1.38 per share, matching analysts' forecasts, while sales fell 1 percent to $4.33 billion.

(Reporting by Jessica Wohl in Chicago; Editing by Jeffrey Benkoe and Maureen Bavdek)

By Jessica Wohl

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on PROCTER & GAMBLE CO
05/26 PROCTER & GAMBLE : Tampax® Donates One Million Tampons to Girls and Women in Nee..
05/25 PROCTER & GAMBLE : Gillette® Bolsters its esports Roster with EDward Gaming EDG ..
05/25 PROCTER & GAMBLE : Patent Issued for Method of Profile Heatsealing (USPTO 964921..
05/25 PROCTER & GAMBLE : Study Results from J.R. Schwartz et al Provide New Insights i..
05/25 PROCTER & GAMBLE : Dreft® Unveils New Dreft purtouch™ - a 65% Plant-Based ..
05/25 PROCTER & GAMBLE : New Findings from T. He and Co-Researchers in the Area of Cos..
05/25 PROCTER & GAMBLE : Actress Emeraude Toubia and P&G's Orgullosa Launch the WeAreO..
05/25 PROCTER & GAMBLE : ADDING MULTIMEDIA Dawn® Dish Soap and Shedd Aquarium Crown th..
05/24 U.S. Patents Awarded to Inventors in Kentucky (May 24)
05/24 PROCTER & GAMBLE : Actress Emeraude Toubia and P&G’s Orgullosa Launch the ..
More news
Sector news : Personal Products - NEC
05/22 Cross-border M&A between U.S. and European firms at 10 year high
05/17 Trump turmoil drags European shares into worst day in eight months
05/17DJHINDUSTAN UNILEVER : Profit Rose 6.2% in Jan-March Quarter
05/17DJTritax Big Box REIT Buys Distribution Center for GBP20.9 Million
05/10DJMARKET SNAPSHOT : Nasdaq Closes At Record For 4th Straight Day As Dow Slips In F..
More sector news : Personal Products - NEC
News from SeekingAlpha
05/26 RETIREMENT STRATEGY : Making Money Without Spending A Penny Out Of Pocket!
05/26 Putting My Core Conviction Stocks To The Test
05/25 Re-Evaluating And Identifying Our Core Holdings
05/25 The No-Brainer Way To Beat SPY
05/25 My 5 Dividend Champions And Their Alternatives
Advertisement
Financials ($)
Sales 2017 65 024 M
EBIT 2017 14 090 M
Net income 2017 12 823 M
Debt 2017 19 968 M
Yield 2017 3,11%
P/E ratio 2017 16,65
P/E ratio 2018 21,27
EV / Sales 2017 3,74x
EV / Sales 2018 3,65x
Capitalization 223 152 M
More Financials
Chart PROCTER & GAMBLE CO
Duration : Period :
Procter & Gamble Co Technical Analysis Chart | PG | US7427181091 | 4-Traders
Full-screen chart
Technical analysis trends PROCTER & GAMBLE CO
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 91,7 $
Spread / Average Target 5,1%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
David S. Taylor Chairman, President & Chief Executive Officer
Jon R. Moeller Chief Financial Officer
Kathleen B. Fish Chief Technology Officer
Javier Polit Chief Information Officer
Scott D. Cook Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
PROCTER & GAMBLE CO3.77%223 152
UNILEVER PLC30.92%168 569
UNILEVER NV (ADR)37.48%168 240
UNILEVER29.21%168 164
COLGATE-PALMOLIVE COMP..15.30%66 644
HINDUSTAN UNILEVER LTD26.07%34 957
More Results