FOR IMMEDIATE RELEASE
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PROCTER & GAMBLE - THIRD QUARTER 2002/03 UPDATE
PROCTER & GAMBLE RAISES EARNINGS GUIDANCE;
MANAGEMENT TO PRESENT IN NEW YORK, TOMORROW AT 7:00 A.M.
CINCINNATI, March 17, 2003 - The Procter & Gamble Company (NYSE:PG)
today stated it is raising earnings guidance for the January to March 2003
quarter behind solid volume growth and favorable exchange rates.
Volume for the quarter is expected to grow in the six to eight percent
range, with broad scale improvement across global business units and
geographies. The health care business unit and developing markets continue to
lead the volume progress. The solid volume growth is on top of a strong base
period when volume grew by 10 percent, and includes the current year negative
impact of the Jif and Crisco spin-off, which was completed at the end of May
2002.
Sales, excluding foreign exchange, are expected to finish the quarter
with growth in the mid single-digit range. Foreign exchange is expected to add
approximately three to four percent to sales growth, which is one to two percent
above previous estimates. Total sales growth is projected in the high
single-digits, reflecting the solid volume growth and favorable exchange rates.
Operating margin is expected to grow in the range of 20 to 50 basis
points versus a very strong base period when operating margins grew by 280 basis
points.
Core earnings per share, which excludes restructuring program charges,
are expected to grow in the 13% to 14% percent range, at or above consensus
estimates. Previous guidance included anticipated core earnings per share growth
of 11% to 13%.
Also, the company announced that A.G. Lafley, chairman of the board,
president and chief executive, and Clayton C. Daley, Jr., chief financial
officer, will be presenting at the Merrill Lynch Consumer Products Conference in
New York City tomorrow, March 18, at 7:00 a.m. (ET). The presentation will be
made in the Spellman Room of the Palace Hotel. Analysts and investors are
invited to attend.
For those unable to participate in person, a conference call of the
meeting will be available by calling 800-946-0742 in the U.S. For calls outside
the U.S., the number is 719-457-2650. Please use the following confirmation code
177504 to get access to the conference. Also, the meeting will be available via
webcast on Tues., March 18 at 7:00 a.m. (ET). You may link to the webcast by
going to our website at: http//www.pg.com/investors.
A replay of the call will be available until midnight, Tues., March 25,
2003 by calling 800-289-0579 in the U.S. The confirmation code is 177504.
Outside the U.S., please call 719-457-2550 and use the same confirmation code.
All statements, other than statements of historical fact included in
this news release, are forward-looking statements, as that term is defined in
the Private Securities Litigation Reform Act of 1995. In addition to the risks
and uncertainties noted in this news release, there are certain factors that
could cause actual results to differ materially from those anticipated by some
of the statements made. These include: (1) the achievement of expected cost and
tax savings associated with changes in the Company's organization structure; (2)
the ability to achieve business plans, including growing volume profitably,
despite high levels of competitive activity, especially with respect to the
product categories and geographical markets in which the Company has chosen to
focus; (3) the ability to manage and maintain key customer relationships; (4)
the achievement of growth in significant developing markets such as China,
Turkey, Mexico, the Southern Cone of Latin America, the countries of Central and
Eastern Europe and the countries of Southeast Asia; (5) the ability to
successfully manage regulatory, tax and legal matters, including resolution of
pending matters within current estimates; (6) the ability to successfully
implement, achieve and sustain cost improvement plans in manufacturing and
overhead areas; (7) the ability to successfully manage currency (including
currency issues in Latin America), interest rate and certain commodity cost
exposures; and (8) the ability to manage the continued political and/or economic
uncertainty in Latin America (including Venezuela) and the Middle East, as well
as any political and/or economic uncertainty due to terrorist activities or war
(including Korea). If the Company's assumptions and estimates are incorrect or
do not come to fruition, or if the Company does not achieve all of these key
factors, then the Company's actual results might differ materially from the
forward-looking statements made herein. For additional information concerning
factors that could cause actual results to materially differ from those
projected herein, please refer to our most recent 10-K, 10-Q and 8-K reports.
ABOUT PROCTER & GAMBLE
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P&G is celebrating 165 years of providing trusted quality brands that
make every day better for the world's consumers. We market nearly 300 brands -
including Pampers(R), Tide(R), Ariel(R), Always(R), Whisper(R), Pantene(R),
Bounty(R), Pringles(R), Folgers(R), Charmin(R), Downy(R), Lenor(R), Iams(R),
Crest(R), Actonel(R), Olay(R) and Clairol(R) - in more than 160 countries around
the world. The P&G community consists of nearly 102,000 employees working in
almost 80 countries worldwide. Please visit www.pg.com for the latest news and
in-depth information about P&G and its brands.
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P&G MEDIA CONTACT:
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1-866-PROCTER(1-866-776-2837)
P&G INVESTOR RELATIONS CONTACT:
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John P. Goodwin - (513) 983-2414