CINCINNATI
, Dec 13, 2005 – The
Procter & Gamble
Company (NYSE: PG)
updated previously
announced sales and
earnings per share
guidance for the October
to December quarter.
The company said it
now expects sales growth
of 25% to 26% for the
quarter, toward the
top end of the previously
announced range of
23% to 26%. P&G
stated that its confidence
in the top line is
due to strong performance
on both the P&G
and Gillette businesses
and better than expected
pricing contribution.
P&G now expects
organic sales growth
of six percent to seven
percent led by the
household care and
beauty businesses.
Organic sales growth
excludes the impacts
of foreign exchange
and acquisitions and
divestitures.
The Gillette global
business unit, which
is comprised of the
Blades & Razors
and Duracell & Braun
businesses, is expected
to deliver stronger
sales growth than previously
anticipated. P&G
previously anticipated
flat to low-single
digit sales growth
versus a very strong
base period when sales
grew 17% driven by
the M3 Power and Braun
Activator innovations
as well as broad-based
geographic strength,
especially in developing
markets.
P&G also stated
it now expects earnings
per share of $0.68
to $0.69 for the quarter,
toward the top end
of the previously announced
range of $0.66 to $0.69
per share. The improvement
in the EPS outlook
is due to lower than
anticipated dilution
in the quarter from
the Gillette acquisition.
The company now expects
Gillette dilution to
be 8 to 10 cents per
share for the quarter
compared to previous
estimates of 9 to 12
cents per share. This
change is driven by
refined timing forecasts
for SG&A costs.
The Company continues
to expect Gillette
dilution for the fiscal
year to be in the $0.20
to $0.26 per share
range.
Forward Looking
Statements
All statements, other
than statements of
historical fact included
in this release, are
forward-looking statements,
as that term is defined
in the Private Securities
Litigation Reform Act
of 1995. In addition
to the risks and uncertainties
noted in this release,
there are certain factors
that could cause actual
results to differ materially
from those anticipated
by some of the statements
made. These include:
(1) the ability to
achieve business plans,
including with respect
to lower income consumers
and growing existing
sales and volume profitably
despite high levels
of competitive activity,
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 execute,
manage and integrate
key acquisitions and
mergers, including
(i) the Domination
and Profit Transfer
Agreement with Wella,
and (ii) the Company’s
merger with The Gillette
Company, and to achieve
the cost and growth
synergies in accordance
with the stated goals
of the Gillette transaction;
(3) the ability to
manage and maintain
key customer relationships;
(4) the ability to
maintain key manufacturing
and supply sources
(including sole supplier
and plant manufacturing
sources); (5) the ability
to successfully manage
regulatory, tax and
legal matters (including
product liability,
patent, and other intellectual
property matters),
and to resolve pending
matters within current
estimates; (6) the
ability to successfully
implement, achieve
and sustain cost improvement
plans in manufacturing
and overhead areas,
including the Company's
outsourcing projects;
(7) the ability to
successfully manage
currency (including
currency issues in
volatile countries),
debt (including debt
related to the Company’s
announced plan to repurchase
shares of the Company’s
stock), interest rate
and certain commodity
cost exposures; (8)
the ability to manage
the continued global
political and/or economic
uncertainty and disruptions,
especially in the Company's
significant geographical
markets, as well as
any political and/or
economic uncertainty
and disruptions due
to terrorist activities;
(9) the ability to
successfully manage
competitive factors,
including prices, promotional
incentives and trade
terms for products;
(10) the ability to
obtain patents and
respond to technological
advances attained by
competitors and patents
granted to competitors;
(11) the ability to
successfully manage
increases in the prices
of raw materials used
to make the Company's
products; (12) the
ability to stay close
to consumers in an
era of increased media
fragmentation; and
(13) the ability to
stay on the leading
edge of innovation.
For additional information
concerning factors
that could cause actual
results to materially
differ from those projected
herein, please refer
to our most recent
10-K, 10-Q and 8-K
reports.
About P&G
Three billion times
a day, P&G brands
touch the lives of
people around the world.
The company has one
of the strongest portfolios
of trusted, quality,
leadership brands,
including Pampers®,
Tide®, Ariel®, Always®,
Whisper®, Pantene®,
Mach3®, Bounty®, Dawn®,
Pringles®, Folgers®,
Charmin®, Downy®, Lenor®,
Iams®, Crest®, Oral-B®,
Actonel®, Duracell®,
Olay®, Head & Shoulders®,
Wella, Gillette®, and
Braun. The P&G
community consists
of almost 140,000 employees
working in over 80
countries worldwide.
Please visit http://www.pg.com for
the latest news and
in-depth information
about P&G and its
brands.
#
# #
P&G Media
Contact :
In
the US : 1-866-PROCTER
or 1-866-776-2837
International:
+1-513-945-9087
P&G Investor
Relations Contact :
Chris
Peterson - (513) 983-2414
|
