THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
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OND QUARTER
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W/O RESTRUCTURING CHARGES
OND 03 OND 02 % CHG OND 02 % CHG
-------- -------- ----- -------- -----
NET SALES $ 13,221 $ 11,005 20 % $ 10,996 20 %
COST OF PRODUCTS SOLD 6,324 5,490 15 % 5,406 17 %
-------- -------- --------
GROSS MARGIN 6,897 5,515 25 % 5,590 23 %
MARKETING, RESEARCH, ADMINISTRATIVE & OTHER 4,155 3,267 27 % 3,210 29 %
-------- -------- --------
OPERATING INCOME 2,742 2,248 22 % 2,380 15 %
TOTAL INTEREST EXPENSE 149 143 143
OTHER NON-OPERATING INCOME, NET 29 74 74
-------- -------- --------
EARNINGS BEFORE INCOME TAXES 2,622 2,179 20 % 2,311 13 %
INCOME TAXES 804 685 719
NET EARNINGS 1,818 1,494 22 % 1,592 14 %
======== ======== ========
EFFECTIVE TAX RATE 30.7 % 31.4 % 31.1 %
PER COMMON SHARE:
BASIC NET EARNINGS $ 1.38 $ 1.13 22 % $ 1.20 15 %
DILUTED NET EARNINGS $ 1.30 $ 1.06 23 % $ 1.13 15 %
DIVIDENDS $ 0.45 $ 0.41 $ 0.41
AVERAGE DILUTED SHARES OUTSTANDING 1,400.4 1,402.6 1,402.6
Basis Pt Basis Pt
COMPARISONS AS A % OF NET SALES Chg Chg
COST OF PRODUCTS SOLD 47.8 % 49.9 % 49.2 %
GROSS MARGIN 52.2 % 50.1 % 210 50.8 % 140
MARKETING, RESEARCH, ADMINISTRATIVE & OTHER 31.4 % 29.7 % 29.2 %
OPERATING MARGIN 20.7 % 20.4 % 30 21.6 % (90)
EARNINGS BEFORE INCOME TAXES 19.8 % 19.8 % 21.0 %
NET EARNINGS 13.8 % 13.6 % 14.5 %
* The company's multi-year restructuring program was substantially complete at
the end of FY 2003. Concurrent with the end of the program, the company will no
longer separately report core results.
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FYTD
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W/O RESTRUCTURING CHARGES
12/31/2003 12/31/2002 % CHG 12/31/2002 % CHG
---------- ---------- ----- ---------- -----
NET SALES $ 25,416 $ 21,801 17 % $ 21,797 17 %
COST OF PRODUCTS SOLD 12,203 10,979 11 % 10,812 13 %
-------- -------- --------
GROSS MARGIN 13,213 10,822 22 % 10,985 20 %
MARKETING, RESEARCH, ADMINISTRATIVE & OTHER 7,828 6,395 22 % 6,275 25 %
-------- -------- --------
OPERATING INCOME 5,385 4,427 22 % 4,710 14 %
TOTAL INTEREST EXPENSE 290 287 287
OTHER NON-OPERATING INCOME, NET 69 177 177
-------- -------- --------
EARNINGS BEFORE INCOME TAXES 5,164 4,317 20 % 4,600 12 %
INCOME TAXES 1,585 1,359 1,431
NET EARNINGS 3,579 2,958 21 % 3,169 13 %
======== ======== ========
EFFECTIVE TAX RATE 30.7 % 31.5 % 31.1 %
PER COMMON SHARE:
BASIC NET EARNINGS $ 2.71 $ 2.23 22 % $ 2.39 13 %
DILUTED NET EARNINGS $ 2.56 $ 2.10 22 % $ 2.25 14 %
DIVIDENDS $ 0.91 $ 0.82 $ 0.82
AVERAGE DILUTED SHARES OUTSTANDING 1,399.6 1,404.9 1,404.9
Basis Pt Basis Pt
COMPARISONS AS A % OF NET SALES Chg Chg
COST OF PRODUCTS SOLD 48.0 % 50.4 % 49.6 %
GROSS MARGIN 52.0 % 49.6 % 240 50.4 % 160
MARKETING, RESEARCH, ADMINISTRATIVE & OTHER 30.8 % 29.3 % 28.8 %
OPERATING MARGIN 21.2 % 20.3 % 90 21.6 % (40)
EARNINGS BEFORE INCOME TAXES 20.3 % 19.8 % 21.1 %
NET EARNINGS 14.1 % 13.6 % 14.5 %
* The company's multi-year restructuring program was substantially complete at
the end of FY 2003. Concurrent with the end of the program, the company will no
longer separately report core results.
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Consolidated Cash Flows Information
-----------------------------
Six Months Ended December 31
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2003 2002
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OPERATING ACTIVITIES
NET EARNINGS $ 3,579 $ 2,958
DEPRECIATION AND AMORTIZATION 857 844
DEFERRED INCOME TAXES 233 166
CHANGES IN:
ACCOUNTS RECEIVABLE (452) (117)
INVENTORIES (74) (89)
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES (183) 73
OTHER OPERATING ASSETS & LIABILITIES (144) 151
OTHER 145 340
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TOTAL OPERATING ACTIVITIES 3,961 4,326
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CAPITAL EXPENDITURES (810) (616)
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FREE CASH FLOW BEFORE DIVIDENDS $ 3,151 $ 3,710
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THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Consolidated Balance Sheet Information
Dec 31, 2003 June 30, 2003
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CASH AND CASH EQUIVALENTS $ 4,943 $ 5,912
INVESTMENTS SECURITIES 351 300
ACCOUNTS RECEIVABLE 4,447 3,038
TOTAL INVENTORIES 4,621 3,640
OTHER 2,803 2,330
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TOTAL CURRENT ASSETS 17,165 15,220
NET PROPERTY, PLANT AND EQUIPMENT 14,043 13,104
NET GOODWILL AND OTHER INTANGIBLE ASSETS 20,710 13,507
OTHER NON-CURRENT ASSETS 1,944 1,875
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TOTAL ASSETS $53,862 $43,706
======= =======
ACCOUNTS PAYABLE $ 2,822 $ 2,795
ACCRUED AND OTHER LIABILITIES 6,446 5,512
TAXES PAYABLE 2,454 1,879
DEBT DUE WITHIN ONE YEAR 5,885 2,172
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TOTAL CURRENT LIABILITIES 17,607 12,358
LONG-TERM DEBT 12,636 11,475
OTHER 5,047 3,687
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TOTAL LIABILITIES 35,290 27,520
------- ------
------- ------
TOTAL SHAREHOLDERS' EQUITY 18,572 16,186
------- ------
------- ------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $53,862 $43,706
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THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
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Three Months Ended December 31, 2003
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% Change Earnings % Change % Change
Versus Before Versus Net Versus
Net Sales Year Ago Income Taxes Year Ago Earnings Year Ago
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FABRIC AND HOME CARE $ 3,407 10% $ 843 10% $ 570 11%
BEAUTY CARE 4,492 50% 1,047 43% 681 34%
BABY AND FAMILY CARE 2,673 6% 444 0% 281 2%
HEALTH CARE 1,908 22% 500 34% 333 32%
SNACKS AND BEVERAGES 931 6% 188 12% 122 11%
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TOTAL BUSINESS SEGMENT 13,411 21% 3,022 22% 1,987 20%
CORPORATE (190) n/a (400) n/a (169) n/a
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TOTAL COMPANY 13,221 20% 2,622 20% 1,818 22%
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Six Months Ended December 31, 2003
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% Change Earnings % Change % Change
Versus Before Versus Net Versus
Net Sales Year Ago Income Taxes Year Ago Earnings Year Ago
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FABRIC AND HOME CARE $ 6,800 9% $ 1,675 6% $ 1,132 7%
BEAUTY CARE 8,245 35% 1,960 28% 1,297 23%
BABY AND FAMILY CARE 5,280 7% 916 9% 576 11%
HEALTH CARE 3,636 22% 906 40% 609 36%
SNACKS AND BEVERAGES 1,827 7% 350 21% 231 15%
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TOTAL BUSINESS SEGMENT 25,788 17% 5,807 19% 3,845 17%
CORPORATE (372) n/a (643) n/a (266) n/a
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TOTAL COMPANY 25,416 17% 5,164 20% 3,579 21%
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
OCTOBER-DECEMBER NET SALES INFORMATION
(Percent Change vs. Year Ago) **
Volume
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With Without
Acquisitions/ Acquisitions/ Total Total Impact
Divestitures Divestitures FX Price Mix/Other Impact Ex-FX
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FABRIC AND HOME CARE 9% 9% 4% -1% -2% 10% 6%
BEAUTY CARE 45% 10% 5% 0% 0% 50% 45%
BABY AND FAMILY CARE 4% 4% 5% -1% -2% 6% 1%
HEALTH CARE 17% 17% 4% 1% 0% 22% 18%
SNACKS AND BEVERAGES 1% 1% 4% -2% 3% 6% 2%
TOTAL COMPANY 19% 9% 4% -1% -2% 20% 16%
** These sales percentage changes are approximations based on quantitative formulas that are consistently applied.