|P&G to Detail Growth & Productivity Strategy at 2012 Analyst Meeting|
Will Confirm Second Quarter and Fiscal Year Guidance;
Announce Strengthened Productivity Plans and Higher Share Repurchase Potential
Mr. McDonald will discuss P&G’s continued efforts to maintain momentum in developing markets, strengthen its core developed market business, build a strong innovation pipeline, and aggressively drive cost savings and productivity improvements. Commenting on these priorities at P&G’s recent annual shareholders meeting, McDonald said, “Our plan is decisive, simple and focused – grow our core and win with innovation fueled by productivity. We’re confident that our growth and productivity strategies will enable P&G to generate superior levels of shareholder return in both the short- and long-term.”
Financial Guidance and Share Repurchase Outlook
P&G will confirm its net sales, organic sales, all-in earnings per share
and core earnings per share guidance for both the October – December
quarter and fiscal year 2013. The Company issued its most recent,
detailed guidance update on
P&G will increase its expected share repurchase outlook to
P&G will discuss its portfolio of recent and near-term innovations,
including Tide PODS, Downy Unstopables, ZzzQuil, Cascade Platinum,
P&G will reiterate the cost savings objectives it announced earlier this
At today’s meeting, P&G will announce a new objective to reduce
non-manufacturing enrollment by an additional two percent to four
percent per year through fiscal years 2014 to 2016 to strengthen the
Company’s ability to achieve its savings objectives.
P&G’s 2012 Analyst Meeting is available by live audio webcast at www.pg.com/investors,
Certain statements in this release or presentation, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue”, “will likely results,” and similar expressions. Forward-looking statements are based on current expectation and assumptions that are subject to risks and uncertainties which may cause results to differ materially from the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.
Risks and uncertainties to which our forward-looking statements are
subject include: (1) the ability to achieve business plans, including
growing existing sales and volume profitably and maintaining and
improving margins and market share, despite high levels of competitive
activity, an increasingly volatile economic environment, 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, and/or increasing competition
from mid- and lower tier value products in both developed and developing
markets; (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,
environmental and tax policy), and to resolve pending matters within
current estimates; (7) the ability to resolve the pending competition
law inquiries in
P&G serves approximately 4.6 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 approximately 75 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.
Exhibit: 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 charges in both years for incremental restructuring charges due to increased focus on productivity and cost savings, charges in both years related to the European legal matters, current year estimated gain on buyout of Iberian joint venture, and prior year impairment charges for goodwill and indefinite lived intangible assets. 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.
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