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| 8-K - FEBRUARY 2010 GUIDANCE CAGNY - PROCTER & GAMBLE Co | guidance.htm |
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News
Release
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The
Procter & Gamble Company
One
P&G Plaza
Cincinnati,
OH 45202
|
FOR
IMMEDIATE RELEASE
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P&G ANNOUNCES NEW PRODUCT INNOVATIONS AT CAGNY
CONFERENCE
Discusses
Business Outlook for Fiscal 2010 and
Beyond
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CINCINNATI,
Feb. 18, 2010 – Executives from the Procter & Gamble Company (NYSE:PG) spoke
to a large audience of institutional investors and industry analysts at the
Consumer Analyst Group of New York (CAGNY) annual conference earlier
today.
Bob
McDonald, P&G’s chairman of the board, president and chief executive
officer, discussed the Company’s growth strategy of “touching and improving more
consumers’ lives in more parts of the world more
completely.” McDonald added that “the thread that runs through
every element of this strategy is innovation. We have the strongest
innovation program that I can remember in my 30-year career at P&G, and we
are investing behind it to drive growth across our business.” He went
on to discuss several notable innovations which are scheduled to launch over the
next few months, including:
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·
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Pampers
Swaddlers and Cruisers diapers with DryMax technology – which begin
shipping to North American consumers in
mid-March.
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·
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Ariel
Actilift and Dash Actilift laundry detergents – which are shipping now to
Western European consumers.
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·
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The
reformulation of the Pantene hair care brand – which will first be
available to North American consumers in
June.
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·
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Gillette
Fusion Pro-Glide razor system – which will also begin shipping in
June.
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McDonald
encouraged investors to visit the Company’s new innovation web site at
PGinnovation.com to learn more about these and many other new product
innovations.
P&G
also provided an update of its business outlook for fiscal year 2010 and
beyond. The company confirmed its fiscal year 2010 all-in GAAP EPS
guidance range of $4.02 to $4.12 and its Core EPS range of $3.53 to
$3.63. Core EPS is EPS from continuing operations adjusted for
certain unusual items (See Exhibit 1). When addressing the outlook
for fiscal year 2011, P&G said that it is too early in the planning stages
to provide detailed guidance, but the company expects to deliver continued
strong top-line growth and a sequential improvement in bottom-line growth
compared to fiscal 2010.
When
discussing the Company’s longer-term growth outlook, Jon Moeller, P&G’s
chief financial officer, said “Our fundamental and overriding objective has been
– and will be – the creation of value for shareholders at leadership levels on a
consistent basis. In order to continue achieving this, we have to
grow market value share, earnings per share and generate strong cash
flow.” Moeller stressed management’s confidence in delivering
profitable market share growth based on the strength of P&G’s innovation
pipeline and increased focus on execution. Regarding longer-term
earnings per share objectives, Moeller said “As we evaluate our historical
performance and the current outlook for our industry, we believe that leadership
levels of shareholder value creation will require earnings per share growth in
the range of high-single to low-double-digits.” Moeller noted that
this range assumes a normalized environment for commodity costs and foreign
currency exchange rates.
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 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, 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 and
divestiture 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 designed to support our growth strategies, while
successfully identifying, developing and retaining key employees; (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, competition law matters, and tax policy), and to resolve
pending matters within current estimates; (7) the ability to successfully
implement, achieve and sustain cost improvement plans in manufacturing and
overhead areas, including the Company's outsourcing projects; (8) the ability to
successfully manage currency (including currency issues in certain countries,
such as Venezuela, China and India), debt, interest rate and commodity cost
exposures and significant credit or liquidity issues; (9) the ability to manage
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 a global or
regional credit crisis or terrorist and other hostile activities; (10) the
ability to successfully manage competitive factors, including prices,
promotional incentives and trade terms for products; (11) the ability to obtain
patents and respond to technological advances attained by competitors and
patents granted to competitors; (12) the ability to successfully manage
increases in the prices of raw materials used to make the Company's products;
(13) the ability to stay close to consumers in an era of increased media
fragmentation; (14) the ability to stay on the leading edge of innovation and
maintain a positive reputation on our brands; and (15) the ability to rely on
and maintain key information technology systems. 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 Procter &
Gamble
Four
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®, Gain®, Pringles®, Charmin®, Downy®, Lenor®, Iams®, Crest®,
Oral-B®, Duracell®, Olay®, Head & Shoulders®, Wella®, Gillette®, Braun® and
Fusion®. The P&G community includes approximately 135,000 employees working
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.
# # #
P&G Media
Contacts:
Paul Fox,
513.983.3465
Jennifer
Chelune, 513.983.2570
P&G Investor Relations
Contacts:
Mark
Erceg, 513.983.2414
John
Chevalier, 513.983.9974
The
Procter & Gamble Company
Exhibit
1: Non-GAAP Measures
In
accordance with the SEC’s Regulation G, the following provides definitions of
the non-GAAP measures used in this news release and the reconciliation to the
most closely related GAAP measure.
Core
EPS: This is a measure of the Company’s diluted net earnings
per share from continuing operations excluding a charge for pending European
legal matters and incremental restructuring charges incurred to offset the
dilutive impact of the Folgers divestiture. 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. The table below provides a reconciliation of reported
diluted net earnings per share from continuing operations to core earnings per
share:
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FY 2009
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FY 2010
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|||||||
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Diluted
Net Earnings Per Share
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$ | 4.26 | $ | 4.02 to $4.12 | ||||
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Folgers
Results of Operations and Gain on the Sale
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$ | (0.68 | ) | - | ||||
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Gain
on the Sale of Pharmaceuticals
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- | $ | (0.47 | ) | ||||
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Gain
on the Sale of Actonel in Japan
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- | $ | (0.04 | ) | ||||
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Pharmaceuticals
Results of Operations
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$ | (0.19 | ) | $ | (0.07 | ) | ||
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Diluted
Net Earnings Per Share - Continuing Operations
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$ | 3.39 | $ | 3.44 to $3.54 | ||||
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Incremental
Folgers-related Restructuring Charges
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$ | 0.09 | - | |||||
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Charge
for Pending European Legal Matters
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- | $ | 0.09 | |||||
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Rounding
Impacts
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$ | (0.01 | ) | - | ||||
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Core
EPS
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$ | 3.47 | $ | 3.53 to $3.63 | ||||
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Core
EPS Growth
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2%
to 5%
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