P&G completed the sale of its pharmaceutical business to Irish company Warner Chilcott plc for $3.1 billion in cash. P&G expects a one-time earnings boost of 43 cents per share in the second fiscal quarter from the sale.
Net income fell 1% year-over-year to $3.31 billion ($1.06 per share), beating expectations of $0.95 to $1.00 per share. Revenue declined 6% to $19.81 billion, while organic sales growth 2%.
PG is in talks to buy part of Sara Lee Corporation's international products unit. The company is interested in the division's air care business, which makes Ambi Pur air fresheners. The air care unit is valued around $700 million.
Citi upgraded PG to buy and increased its price target from $54 to $66. Citi analysts said PG will become more aggressive to win back lost market share moving forward.
Procter and Gamble outlined targeted-price reductions for Tide, which is already resulting in market-share gains, and a new repositioning down of Cheer including a 13% price reduction. Both actions are expected to put pressure on Church & Dwight's (CHD) Arm & Hammer value brand, which has been a key source of growth this year.
PG reaffirmed its fiscal 2010 revenue guidance for organic sales growth of 1-3%. The company expects 2010 EPS of $3.99-$4.12 per share, including a one-time increase in earnings of $0.44 from the sale of its pharmaceutical business.
According the SEC filings, former P&G CEO AG Lafley received a salary of $1.8 million in addition to $11.5 million in stock (up from $9.1 last year) and $6.5 million in options (down from $7.8m). His performance-based bonus fell since the company missed sales and EPS long-terms goals. The new CEO, Bob McDonald, will receive a salary of $1.4 million per year.
P&G and its international funding unit sold $1.5 billion in debt in two parts, increased from an originally planned $1 billion.
Warner Wilcott Plc will acquire P&G's global pharm business in a deal valued at $3.1 billion
P&G acquired the high end Miami-based company "The Art of Shaving," which sells razors for more than $300 each, and the upscale men's skin care line Zirh.
COO Robert McDonald will replace A.J. Lafley as CEO on July 1, announced P&G today.
P&G said revenue fell as the stronger US dollar cut into international sales. Revenue in the 3rd quarter fell 8% to $18.4 billion. Sales dropped across all categories, causing the company to downgrade its 2009 profit forecast to $4.25 a share. Net income fell 3.6% to $2.61 billion.
PG increased its quarterly dividend to 44 cents from 40 cents, payable on May 15 to shareholders of record as of April 24.
Procter & Gamble Co. is cutting 90 part-time jobs in Puerto Rico, as part of a broader restructuring over the next four months.
Continuing a streak of dividend increases for 50 years, P&G is expected to raise its dividend by at least 10% to 44 cents per share in April.
Susan Arnold stepped down from her post as President of Global Business Units at age 55. She had been viewed as a candidate to succeed CEO A.G. Lafley.
P&G is working with Goldman Sachs to identify potential buyers for its pharmaceuticals brands or identify other ways to exit the business. In December, the company had announced it stopped investing in new drug development.
PG reported its fiscal second quarter earnings were up 53% from the previous year, primarily from the sale of its Folgers coffee division. Organic sales were up 2%. The company lowered guidance for 2009 to $4.20-$4.35 per share from its prior outlook of $4.28-$4.38 per share.
PG and Fruit of the Earth announced settlement of a suit over the Olay Regenerist brands. The companies agreed to a judgement in which Fruit of the Earth recognized the validity of P&G's rights in the Olay Regenerist Trade Dress. Fruit of the Earth has also agreed to revise its product offerings.
P&G said fiscal second-quarter organic sales - which exclude acquisitions, divestitures and foreign-exchange impacts - will fall short of the 4% to 6% growth target given in October.
Proctor & Gamble expanded it's beauty products segment by purchasing Nioxin Research Laboratories, a private maker of products for thinning hair, in a deal valued at under $300 million (details of the term were not announced).
Procter & Gamble announces plans to buy back approximately $5.5 billion in shares over the course of 2007.
Procter & Gamble announces that a jury awarded it $19.25 million after determining that some of P&G's partner distributors had spread false rumors about the company to advance their own business.
