The Procter & Gamble Company
NEWS RELEASE One P&G Plaza
Cincinnati, OH 45202
FOR IMMEDIATE RELEASE
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PROCTER & GAMBLE CONFIRMS PRIOR EARNINGS GUIDANCE FOR 2003/04 SECOND
QUARTER AND FISCAL YEAR
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CINCINNATI, Dec. 11, 2003 - The Procter & Gamble Company (NYSE:PG)
confirmed previously announced earnings guidance for the current quarter and
fiscal year.
The company also stated it expects sales for the October to December
quarter to be the eighth consecutive quarter with sales growth at or above the
company's long-term objectives. The company is targeting long-term sales growth
of four to six percent, excluding the impact of foreign exchange rates. For the
quarter, organic volume growth is expected to be in the seven to eight percent
range versus a strong base period of seven percent organic volume growth.
Organic volume excludes the estimated impacts of acquisitions and divestitures
that affect year-over-year comparisons. The volume growth continues to be led by
fabric and home care, health care and developing markets, particularly Russia
and China.
Total sales growth is expected to be in the 14 to 18 percent range for
the quarter. This includes approximately a three to four percent benefit from
foreign exchange and an additional six to seven percent from acquisitions and
divestitures, primarily Wella. It also includes estimated price and mix impacts
of minus one to two percent.
All statements, other than statements of historical fact included in
this presentation, 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 presentation, 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 ability to achieve business
plans, including growing existing sales and volume profitably despite high
levels of competitive activity, especially with respect to the product
categories and geographical markets (including developing markets) in which the
company has chosen to focus; (2) successfully executing, managing and
integrating key acquisitions (including Wella) and completing planned
divestitures (including the potential divestiture of the company's juice
business), (3) the ability to manage and maintain key customer relationships;
(4) the ability to maintain key manufacturing and supply sources (including sole
supplier and plant manufacturing sources); (5) the ability to successfully
manage regulatory, tax and legal matters (including product liability matters),
and to resolve pending matters within current estimates; (6) the ability to
successfully implement, achieve and sustain cost improvement plans in
manufacturing and overhead areas, including successful completion of the
company's outsourcing projects; (7) the ability to successfully manage currency
(including currency issues in volatile countries), interest rate and certain
commodity cost exposures; (8) the ability to manage the continued global
political and/or economic uncertainty, especially in the company's significant
geographical markets, as well as any political and/or economic uncertainty due
to terrorist activities; and (9) the ability to successfully manage increases in
the prices of raw materials used to make the company's products. 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 P&G
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Two billion times a day, P&G brands touch the lives of people around
the world. The company has one of the largest and strongest portfolios of
trusted, quality 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 Nice `n
Easy(R). The P&G community consists of nearly 98,000 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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In the US: 1-800-866-PROCTER or 1-866-776-2837
International: +1-513-945-9087
P&G Investor Relations Contact:
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John P. Goodwin - (513) 983-2414