Procter & Gamble Profit Bucks Proxy Fight -- Update
July 27 2017 - 10:14AM
Dow Jones News
By Sharon Terlep
Procter & Gamble Co., facing a proxy fight with activist
investor Nelson Peltz, posted higher profit in the most recent
quarter despite a slump in consumer spending on staples from
diapers to toothpaste.
Without once mentioning the scuffle with Mr. Peltz, who is
trying to win a seat on the company's board, P&G executives
laid out a clear road map to their case against making him a
director.
In a call with reporters, finance chief Jon Moeller called the
results "fantastic." Chief Executive Officer David Taylor said the
company is making progress and focused on long-term goals, but "we
aren't satisfied with being just a little bit better than last
year."
Mr. Taylor, on a call with analysts, detailed efforts under way
to invest in key markets and products and how the company is
changing its management and bonus structure to speed progress and
encourage "appropriate risk taking."
P&G said organic sales increased 2% for the quarter and full
year ended June 30. The closely watched metric, which strips out
currency moves, acquisitions and divestitures, remains well below
prerecession levels and lags behind some rivals. P&G forecast
growth of 2% to 3% next year.
The consumer-products giant, whose brands include Bounty, Crest,
Tide and Pampers, said it made progress this year in efforts to
lift sluggish sales of its top brands as it fends off calls to
continue trimming its product portfolio. "We have prioritized the
long-term health of the company," Mr. Taylor said.
P&G reported a profit of $2.2 billion, or 82 cents a share,
compared with $1.95 billion, or 69 cents a share, a year ago. But
revenue fell 0.1% to $16.08 billion, and slipped 0.4% in the full
year.
Analysts polled by Thomson Reuters had expected earnings of 78
cents a share on $16 billion revenue.
P&G shares rose 2.5% to $91.20 in premarket trading. Shares
of P&G are up 6% this year compared with the S&P 500's 11%
rise.
--Cara Lombardo contributed to this article.
Write to Sharon Terlep at sharon.terlep@wsj.com
(END) Dow Jones Newswires
July 27, 2017 09:59 ET (13:59 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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