P&G
THE PROCTER & GAMBLE COMPANY
NEWS RELEASE One P&G Plaza
Cincinnati, OH 45202
FOR IMMEDIATE RELEASE
P&G INCREASES SECOND QUARTER SALES AND EPS GUIDANCE
TOWARD TOP END OF PREVIOUS RANGES
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CINCINNATI, Dec 13, 2005 - The Procter & Gamble Company (NYSE: PG)
updated previously announced sales and earnings per share guidance for the
October to December quarter. The company said it now expects sales growth of 25%
to 26% for the quarter, toward the top end of the previously announced range of
23% to 26%. P&G stated that its confidence in the top line is due to strong
performance on both the P&G and Gillette businesses and better than expected
pricing contribution.
P&G now expects organic sales growth of six percent to seven percent
led by the household care and beauty businesses. Organic sales growth excludes
the impacts of foreign exchange and acquisitions and divestitures.
The Gillette global business unit, which is comprised of the Blades &
Razors and Duracell & Braun businesses, is expected to deliver stronger sales
growth than previously anticipated. P&G previously anticipated flat to
low-single digit sales growth versus a very strong base period when sales grew
17% driven by the M3 Power and Braun Activator innovations as well as
broad-based geographic strength, especially in developing markets.
P&G also stated it now expects earnings per share of $0.68 to $0.69 for
the quarter, toward the top end of the previously announced range of $0.66 to
$0.69 per share. The improvement in the EPS outlook is due to lower than
anticipated dilution in the quarter from the Gillette acquisition. The company
now expects Gillette dilution to be 8 to 10 cents per share for the quarter
compared to previous estimates of 9 to 12 cents per share. This change is driven
by refined timing forecasts for SG&A costs.
The Company continues to expect Gillette dilution for the fiscal year
to be in the $0.20 to $0.26 per share range.
FORWARD LOOKING STATEMENTS
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All statements, other than statements of historical fact included in
this 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 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 ability to achieve business plans,
including with respect to lower income consumers and 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) the ability to
successfully execute, manage and integrate key acquisitions and mergers,
including (i) the Domination and Profit Transfer Agreement with Wella, and (ii)
the Company's merger with The Gillette Company, and to achieve the cost and
growth synergies in accordance with the stated goals of the Gillette
transaction; (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, patent,
and other intellectual property 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
the Company's outsourcing projects; (7) the ability to successfully manage
currency (including currency issues in volatile countries), debt (including debt
related to the Company's announced plan to repurchase shares of the Company's
stock), interest rate and certain commodity cost exposures; (8) the ability to
manage the continued global political and/or economic uncertainty and
disruptions, especially in the Company's significant geographical markets, as
well as any political and/or economic uncertainty and disruptions due to
terrorist activities; (9) the ability to successfully manage competitive
factors, including prices, promotional incentives and trade terms for products;
(10) the ability to obtain patents and respond to technological advances
attained by competitors and patents granted to competitors; (11) the ability to
successfully manage increases in the prices of raw materials used to make the
Company's products; (12) the ability to stay close to consumers in an era of
increased media fragmentation; and (13) the ability to stay on the leading edge
of innovation. 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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Three billion times a day, P&G brands touch the lives of people around
the world. The company has one of the strongest portfolios of trusted, quality,
leadership brands, including Pampers(R), Tide(R), Ariel(R), Always(R),
Whisper(R), Pantene(R), Mach3(R), Bounty(R), Dawn(R), Pringles(R), Folgers(R),
Charmin(R), Downy(R), Lenor(R), Iams(R), Crest(R), Oral-B(R), Actonel(R),
Duracell(R), Olay(R), Head & Shoulders(R), Wella, Gillette(R), and Braun. The
P&G community consists of almost 140,000 employees working in over 80 countries
worldwide. Please visit http://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: 1-866-PROCTER or 1-866-776-2837
International: +1-513-945-9087
P&G INVESTOR RELATIONS CONTACT:
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Chris Peterson - (513) 983-2414