Procter & Gamble’s Q2 Profit Rises (PG)
NYSE: PG) reported more than twofold increase in fiscal second-quarter profits as most of its consumer products’ segments succeeded in expanding traction.
The Cincinnati-based Company reported a profit of $4.06 billion or $1.39 a share , compared to earnings of $1.69 billion or 57 cents a share, in the year earlier quarter.
After excluding onetime expenses (restructuring and impairment charges) earnings stood at $1.22 a share, up from $1.09, in the same period of last year.
Sales during the period rose 2% to $22.18 billion while organic sales climbed 3% in the fiscal second quarter.
Analysts’ consensus estimate was for earnings of $1.11 a share on revenue of $21.91 billion.
The Company now expects its adjusted earnings and organic sales for 2013 to come at a higher end of its original guidance. P&G expects adjusted earnings to be in the range of $3.97 a share to $4.07 a share, which is 3% to 6% growth in yearly earnings. Organic sales are expected to grow by 3% to 4% in the fiscal 2013. Earlier in June, the company had provided earnings growth guidance of mid-single digit percentage while organic sales growth was expected to be in the range of 2% to 4%.
The maker of house hold products saw its revenue decline in recent quarters as it struggled to retain its market share. However, thanks to its restructuring measures, and price cuts, significant improvements s are visible across all product segments.
Meanwhile, P&G also announced its plans to slash its non-manufacturing workforce by additional 2% to 4% annually between fiscal 2014 and fiscal 2016. In the current fiscal year which ends June 30, the company is expected to lay-off its non-manufacturing staff by 10% or 5,700.
According to P&G executives, the money saved from job cuts will be channeled towards advertising spending on low price products such as Mach 3, which in turn will boost sales.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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