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P&G ANNOUNCES RESERVE FOR RESTRUCTURINGS, PROJECTS RECORD FISCAL '93 EARNINGS AND INCREASES DIVIDEND

 CINCINNATI, July 15 /PRNewswire/ -- The Procter & Gamble Company (NYSE: PG) today announced the establishment of a $1.5 billion after-tax reserve for plant consolidations and organizational restructuring.
 The reserve figure is based on a reduction of 13,000 positions, or 12 percent of P&G's 106,000 worldwide workforce, and a reduction of about 30 manufacturing plants, or 20 percent of P&G's worldwide total of 147. Half of the workforce reductions will stem from the plant consolidations, the others will result from other organizational restructuring. The company expects these actions to generate $500 million in after-tax savings by 1995-96.
 "Our objective is to improve our rate of profit growth either through improved margins or lower pricing to build volume and share," said Edwin L. Artzt, P&G's chairman of the board and chief executive.
 In addition, the company is setting aside $925 million to retroactively adopt, effective July 1, 1992, two mandatory financial accounting standards related to retiree health benefits and deferred taxes -- FAS No. 106 and No. 109. Together, the effect of the restructuring reserve and the adoption of the new accounting standards reduce 1992-93 net earnings by approximately $2.5 billion, or $3.72 per share.
 P&G also announced that it plans to increase the annual rate of its common stock dividend from $1.10 to $1.24 per share. In line with this action, P&G directors declared a quarterly dividend of $.31 per share on the common stock of the company, payable on or after August 16, 1993, to shareholders of record at the close of business on July 23, 1993. This will mark the 38th consecutive fiscal year in which per share dividends have increased.
 "The public has come to think of corporate restructuring as a sign of trouble, but this is definitely not our situation," Artzt said. "We have a healthy, growing business, a strong balance sheet, positive cash flow, state-of-the-art products and a well-stocked technology pipeline with plenty of opportunities for growth. However, we must slim down to stay competitive. The consumer wants better value. Our competitors are getting leaner and quicker, and we are simply going to have to run faster to stay ahead, and we intend to do just that.
 "Fiscal 1992-93 will be another year of record earnings, excluding special reserves and accounting changes," Artzt said. "We had a good fourth quarter, and expect to be reporting double-digit earnings growth for the full year. In fact, P&G will reach something of a milestone with earnings expected to exceed $2 billion after-tax for the first time."
 The $1.5 billion reserve covers two separate company initiatives. About $1.2 billion will fund the worldwide consolidation of P&G's manufacturing operations; the remainder will cover costs associated with its Strengthening Global Effectiveness (SGE) initiative, aimed at reducing overhead costs.
 P&G announced that the need for plant consolidations is due to three factors:
 Acquisitions -- Since 1982, P&G has acquired 79 new
 plant sites, and has closed only 24, leaving a
 significant number of opportunities to consolidate to
 lower product costs.
 Increasing importance of global brands and packages
 -- The company's ongoing move to global brands and
 common formulas and packages on a regional basis,
 wherever possible, results in economies of scale and
 the need for fewer operations.
 The need for better value -- P&G's ongoing efforts
 are to deliver better consumer value by eliminating
 non-value-added costs and improving efficiency.
 The company will make announcements at the affected plant sites as final decisions are made. Where we have multiple plants at one location, we may close only part of the site. These closings will occur over the next three to four years, and will result in the elimination of 6,500 positions worldwide. P&G plans to manage as many of these reductions as possible through reassignments. Where that is not possible, as the company has done in the past, P&G will do all it can to assist employees who leave -- through retraining, severance benefits and professional outplacement services.
 The SGE project is the most sweeping multifunctional review ever undertaken at P&G. Over the last seven months, teams of employees from every business function and geographic region examined work processes and costs and developed more than 150 recommendations that cover virtually every aspect of the company's business -- from the way new ideas are conceived and executed to the way we source raw materials.
 Another 6,500 positions will be eliminated worldwide as a result of SGE-related changes. The company remains confident that it can manage these reductions primarily through a combination of voluntary early retirements, normal attrition, voluntary separations and reduced recruiting levels.
 "These changes will be difficult for some of our employees. And that's the painful part of these otherwise positive and productive efforts," Artzt said. "We will do everything we can to help those employees whose jobs may be changed or lost to relocate within the Company or find a new career opportunity.
 "As a result of these restructuring efforts, P&G will be a leaner, faster moving and more competitive organization."
 /CONTACT: S. L. McHugh, 513-945-8035, or L. L. Ulrey, 513-945-8210, both of The Procter & Gamble Company/
 A broadcast media release immediately follows.
 P&G ANNOUNCES RESERVE FOR RESTRUCTURINGS, PROJECTS
 RECORD FISCAL '93 EARNINGS AND INCREASES DIVIDEND
 CINCINNATI, July 15 /PRNewswire/ -- The Procter & Gamble Company (NYSE: PG) today announced the establishment of a $1.5 billion after-tax reserve for plant consolidations and organizational restructuring.
 -- The reserve figure is based on a reduction of 13,000
 positions and about 30 manufacturing plants worldwide.
 -- Two separate P&G initiatives are covered by the reserve.
 About $1.2 billion will fund the worldwide consolidation
 of the company's manufacturing operations; the remainder
 will cover costs associated with its Strengthening
 Global Effectivenss (SGE) initiative, aimed at reducing
 overhead costs.
 -- Half of the workforce reductions will stem from the
 plant consolidations, the remainder are SGE-
 related.
 -- P&G will do everything it can to help those employees
 whose jobs may be changed or lost by these actions to
 relocate within the company or find a new career
 opportunity.
 -- P&G plans to manage as many of the plant
 consolidation-related reductions as possible
 through reassignments. Where that is not possible,
 as the company has done in the past, P&G will do
 all it can to assist employees who leave -- through
 retraining, severance benefits and professional
 outplacement services.
 -- For positions eliminated by SGE, P&G remains
 confident that it can manage these reductions
 primarily through a combination of early
 retirements, normal attrition, voluntary
 separations and reduced recruiting levels.
 -- P&G expects these actions to generate $500 million in
 after-tax savings by 1995-96. The company's objective
 is to improve its rate of profit growth either through
 improved margins or lower pricing to build volume or
 share.
 -- P&G also is setting aside $925 million to retroactively
 adopt (effective July 1, 1992) two mandatory financial
 accounting standards related to retiree health benefits
 and deferred taxes.
 -- Together, the effect of the restructuring reserve and
 the adoption of the new accounting standards reduce
 1992-93 net earnings by approximately $2.5 billion,
 or $3.72 per share.
 -- Despite common misperceptions that companies only
 restructure when they're in trouble, P&G is a healthy,
 growing business, with a strong balance sheet, positive
 cash flow, state-of-the-art products and a well-stocked
 technology pipeline with plenty of opportunities for
 growth, the company said.
 -- P&G projects that fiscal 1993 will be another year of
 record earnings, excluding special reserves and
 accounting changes. Earnings are expected to exceed
 $2 billion after-tax for the first time.
 -- P&G also announced plans to increase the annual rate of
 its common stock dividend from $1.10 to $1.24 per share
 -- the 38th consecutive fiscal year in which per share
 dividends have increased.
 Quick Quote:
 "We must slim down to stay competitive. Our competitors are getting leaner and quicker, and we're simply going to have to run faster to stay ahead -- and we intend to do just that," said Edwin L. Artzt, P&G's chairman of the board and chief executive.
 -0- 7/15/93
 /CONTACT: S. L. McHugh, 513-945-8035, or L. L. Ulrey, 513-945-8210, both of The Procter & Gamble Company/
 (PG)


CO: The Procter & Gamble Company ST: Ohio IN: HOU SU: RCN, ERP

BM -- CL011 -- 1786 07/15/93 09:07 EDT
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Date:Jul 15, 1993
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