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ARTZT TELLS PROCTER & GAMBLE SHAREHOLDERS TO EXPECT RECORD QUARTER

 ARTZT TELLS PROCTER & GAMBLE SHAREHOLDERS TO EXPECT RECORD QUARTER
 CINCINNATI, Oct. 13 /PRNewswire/ -- The Procter & Gamble Company's (NYSE: PG) Chairman and Chief Executive, Edwin L. Artzt, told shareholders at their annual meeting here today that the company expects to report new record highs for sales, unit volume and earnings when final results for the July-September quarter are reported later this month.
 "Earnings, excluding the $200 million juice business divestiture reserve announced last month, are coming in somewhat better than expected, so the new year will be off to a strong financial start," Artzt said.
 The Chairman also told shareholders that P&G is making good progress against its long-term goals for diversification and globalization.
 Despite economists' anticipation of another year of sluggish markets and a modest rate of economic recovery, Artzt stated, "I believe that our company is better positioned to deal with the economic realities of the marketplace, whatever they might be, than at any time in our past. And looking ahead, I am optimistic about the company's future."
 Artzt repeated the company's expectation to exceed $50 billion in sales and $3 billion in earnings before the end of this decade. He noted that the more than 40 businesses in which P&G competes represent a $300 billion global market and that P&G's current share of that market, based on its $30 billion sales volume, is only 10 percent. He also noted that with 95 percent of the world's consumers living outside the U.S., continued focus on the globalization of P&G's business and the global deployment of its product technology will be fundamental to the company's ability to grow share in this $300 billion market.
 Successful examples of this strategy were cited: 1) Always feminine protection pads, with the unique "dry weave" topsheet, continue to build share globally, entering new markets last year at the rate of one new country every two weeks; 2) compact laundry detergents were expanded into 27 countries during the past year; and 3) Pantene Pro-V shampoo and conditioner was recently introduced into the U.S., Canada and a number of Asian markets. Artzt also advised shareholders that in the relatively near future, P&G will introduce a whole new line-up of products and packages on its Max Factor line wherever it is sold worldwide.
 "Product innovation will continue to be the lifeblood of Procter & Gamble's growth plans, and we have renewed our commitment to invest strongly in research and development through the balance of the decade," Artzt said. This past year, Procter & Gamble spent $861 million in research and development, representing about 3 percent of P&G's worldwide sales. The company also is investing heavily in research and development facilities to insure its future competitiveness. These include: 1) current expansion of P&G's European Technical Center in Brussels; 2) planned expansion of P&G's European health and beauty care facilities in the U.K.; 3) next spring's opening of its new Japan Technical Center on Rokko Island; and 4) P&G's new Warren County, Ohio worldwide Health Care Technical Center scheduled to open in 1995.
 Artzt discussed the importance of all of P&G's strategic businesses to the company's future growth plans:
 -- P&G expects some of its most vigorous growth in its
 laundry and cleaning products sector -- a $35
 billion worldwide market in which P&G currently
 holds about a 30 percent share. The company is building
 market share with its new color guard products,
 bleach activated detergents, and compact or super
 concentrated products -- the most recent of these
 being the national expansion of compact liquid
 detergents. P&G also is expanding many of its
 laundry and cleaning brands into new geographies,
 like India and Eastern Europe, where markets are
 underdeveloped and growing rapidly.
 -- In beauty care, a $50 billion global market, P&G
 currently holds about a 9 percent share. This is an area
 of priority focus with global initiatives like the
 expansion of Pantene Pro-V, a new line of Oil of
 Olay skin care products and the Max Factor
 initiatives which will help make P&G a major player
 in beauty care by the end of the decade.
 -- In health care, P&G is the market leader in the $40
 billion over-the-counter market with only a 6 percent share
 with brands like Vicks and Metamucil. P&G is still
 a small factor in the $90 billion prescription drug
 market, but has made important commitments to the
 development of that business, including the recently
 announced joint venture with Pfizer to co-develop
 risedronate, a new and significant osteoporosis drug
 discovered by P&G.
 -- The paper sector continues to focus on the global
 expansion of P&G's disposable diaper and feminine
 pad business. This includes the recent formation of
 a 50 percent joint venture in South America with a company
 called CMPC, the leading maker of disposable diapers
 and feminine pads. This venture will cover Chile,
 Argentina, Paraguay, Uruguay and Bolivia.
 -- P&G expects continued improved results in the
 food and beverage business, and cited a number
 of positive signs in the past two years
 including: 1) doubling of profits; 2) a 13 percent
 growth in unit volumes; and 3) competitive
 pricing in these categories resulting from major
 cost savings totalling some $200 million. In
 1991/92, P&G increased its market share in 9 of
 the 11 food and beverage categories in which it
 competes.
 -- Having announced plans last month to exit the 100 percent
 juice business in the U.S. and Europe, P&G now plans
 to focus on the $10 billion worldwide juice drink
 market by building its strong and growing juice
 drink business. This includes Sunny Delight and
 Hawaiian Punch in the U.S. and Valensina and Punica
 in Europe. P&G is concurrently introducing
 nationally in the U.S. a calcium fortified version
 of Sunny Delight as a replacement for Citrus Hill
 Plus Calcium.
 Artzt devoted the remainder of his remarks to a discussion of some of the important changes P&G is making to deliver better value to the consumer.
 "There's a basic truth that every business will have to live by in the '90s -- consumers won't pay for a company's inefficiency," he said. "This means we simply must drive costs out of our systems that don't add value for the consumer." One example of how P&G is meeting both consumers' demand for better value and eliminating systems inefficiency, is the company's move to value pricing in the U.S. P&G has taken a portion of its trade promotion dollars, along with savings from increasing system efficiency, to fund reduced list prices on about 50 percent of its U.S. brands.
 By substantially reducing the variation in trade demand for these brands, as well as reducing variations in volume forecasts, plant production and raw materials supply, P&G stands to realize as much as $175 million a year in real cost savings.
 In closing, Artzt said, "We are blessed with a truly exceptional group of highly diverse people worldwide, people of the highest integrity, intelligence and character. These are people who are committed to the success of our company, and to bringing innovation and increased value to the consumer."
 -0- 10/13/92
 /CONTACT: Ann Jenemann Smith, 513-983-3686, or Teri O. Glover, 513-983-1351, both of The Procter & Gamble Company/
 (PG) CO: The Procter & Gamble Company ST: Ohio IN: HOU SU:


BM -- CL017 -- 9335 10/13/92 12:42 EDT
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Date:Oct 13, 1992
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