RSS Content
| P&G Outlines Strategic Focus and Preliminary Financial Outlook for Fiscal Year 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Updates Estimates for April-June Quarter of Fiscal Year 2012 McDonald added that: “The entire P&G organization – and specifically its leadership – is committed to winning. Winning requires we deliver on our Total Shareholder Return (TSR) objectives. With more focus and better balance, we are confident we can deliver the level and quality of results that will enable P&G to win with our consumers, our customers and our shareholders.” To achieve its objectives, P&G said it is prioritizing investments in its biggest, most profitable markets, on its biggest innovations and in its biggest emerging countries. In addition, the Company clarified that it intends to maintain strong investment levels in markets it has recently entered.
P&G said it expects to deliver improved results by continuing to be the
industry leader in innovation, by driving productivity improvements and
cost savings at an accelerated pace, and by improving the consistency of
execution in all facets of its operations. P&G reiterated its objective
to deliver
In addition to its discussion of adjustments to its strategic focus
areas, P&G provided an update to its financial guidance for the April –
April –
For the April – June quarter, organic sales growth is now expected to be
in the range of two to three percent, compared to a prior range of four
to five percent. Foreign exchange is now expected to reduce net sales by
four percent. Net sales are expected to be in the range of down two to
down one percent compared to a prior range of an increase of one to two
percent. Core earnings per share are now expected to be in the range of
Preliminary Fiscal Year 2013 Guidance Organic sales are expected to increase in the range of two to four percent. Core earnings per share are expected to be in-line to up mid-single digits percentage versus fiscal 2012 results. P&G noted that foreign exchange, based on early-June spot rates, will negatively impact fiscal 2013 EPS growth by approximately four percentage points. Excluding foreign exchange impacts, P&G’s core earnings per share outlook equates to approximately mid-to-high single digit growth.
The Company noted that it has just recently completed its planning
process for fiscal year 2013 and cautioned that the high degree of
volatility in areas such as foreign exchange, commodity costs and
government policies could cause these preliminary estimates to change
materially throughout the coming fiscal year. P&G said it will provide
an update to its fiscal year 2013 financial outlook when it releases
final results for fiscal year 2012 on Forward-Looking Statements
All statements, other than statements of historical fact included in
this release or presentation, are forward-looking statements, as that
term is defined in the Private Securities Litigation Reform Act of 1995.
Such statements are based on financial data, market assumptions and
business plans available only as of the time the statements are made,
which may become out of date or incomplete. We assume no obligation to
update any forward-looking statement as a result of new information,
future events or other factors. Forward-looking statements are
inherently uncertain, and investors must recognize that events could
differ significantly from our expectations. In addition to the risks and
uncertainties noted in this release or presentation, there are certain
factors that could cause actual results for any quarter or annual period
to differ materially from those anticipated by some of the statements
made. These include: (1) the ability to achieve business plans,
including growing existing sales and volume profitably despite high
levels of competitive activity, an increasingly volatile economic
environment, and/or lower than expected market growth rates, especially
with respect to the product categories and geographical markets
(including developing markets) in which the Company has chosen to focus;
(2) the ability to successfully manage ongoing acquisition, divestiture
and joint venture activities to achieve the cost and growth synergies in
accordance with the stated goals of these transactions without impacting
the delivery of base business objectives; (3) the ability to
successfully manage ongoing organizational changes and achieve
productivity improvements designed to support our growth strategies,
while successfully identifying, developing and retaining key employees,
especially in key growth markets where the availability of skilled
employees is limited; (4) the ability to manage and maintain key
customer relationships; (5) the ability to maintain key manufacturing
and supply sources (including sole supplier and plant manufacturing
sources); (6) the ability to successfully manage regulatory, tax and
legal requirements and matters (including product liability, patent,
intellectual property, price controls, import restrictions, and tax
policy), and to resolve pending matters within current estimates; (7)
the ability to resolve the pending competition law inquiries in
About P&G serves approximately 4.4 billion people around the world with its brands. The Company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Mach3®, Bounty®, Dawn®, Fairy®, Gain®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Oral-B®, Duracell®, Olay®, Head & Shoulders®, Wella®, Gillette®, Braun®, Fusion®, Ace®, Febreze®, Ambi Pur®, SK-II®, and Vicks®. The P&G community includes operations in about 80 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.
The Exhibit 1: Non-GAAP Measures In accordance with the SEC’s Regulation G, the following provides definitions of the non-GAAP measures used in the earnings release and the reconciliation to the most closely related GAAP measure. Organic Sales Growth: Organic sales growth is a non-GAAP measure of sales growth excluding the impacts of acquisitions, divestitures and foreign exchange from year-over-year comparisons. We believe this provides investors with a more complete understanding of underlying sales trends by providing sales growth on a consistent basis. Organic sales is also one of the measures used to evaluate senior management and is a factor in determining their at-risk compensation. The reconciliation of reported sales growth to organic sales is as follows:
*Acquisition/Divestiture Impact includes rounding impacts necessary to reconcile net sales to organic sales. Core EPS: This is a measure of the Company’s diluted net earnings per share from continuing operations excluding current year incremental restructuring charges due to increased focus on productivity and cost savings. We do not view these items to be part of our sustainable results. We believe the Core EPS measure provides an important perspective of underlying business trends and results and provides a more comparable measure of year-on-year earnings per share growth. Core EPS is also one of the measures used to evaluate senior management and is a factor in determining their at-risk compensation. The table below provides a reconciliation of diluted net earnings per share to Core EPS:
Note – All reconciling items are presented net of tax. Tax effects are calculated consistent with the nature of the underlying transaction. The charge for the significant settlement from U.S. tax litigation is tax expense.
Source:
P&G Media Contacts:
|
Touching lives, improving life. P&G™