P&G lowers quarterly guidance
CINCINNATI — Procter & Gamble has issued more conservative guidance for its quarter ending in June and unveiled preliminary guidance for fiscal year 2013.
Speaking at the Deutsche Bank Global Consumer Conference in Paris, P&G board chairman, president and CEO Bob McDonald said, "We are making the necessary adjustments to our growth strategy to increase focus on our core business and to achieve more balanced growth across geographies, product categories and the top and bottom lines."
For the April to June 2012 quarter, P&G said organic sales growth now is expected to be in the range of 2% to 3%, compared with a prior range of 4% to 5%, while net sales are expected to be in the range of -2% to -1%, compared with a prior range of an increase of 1% to 2%. Core earnings per share for the quarter now are expected to be in the range of 75 cents to 79 cents per share, compared with prior range of 79 cents to 85 cents.
Meanwhile, for fiscal year 2013, organic sales are expected to increase in the range of 2% to 4%, while core EPS are expected to be in-line to up mid-single digits percentage versus fiscal 2012 results.
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 $10 billion in cost savings by the end of fiscal year 2016, a program that includes a reduction of approximately 5,700 nonmanufacturing roles by the end of fiscal year 2013.