P&G
THE PROCTER & GAMBLE COMPANY
NEWS RELEASE One P&G Plaza
Cincinnati, OH 45202
FOR IMMEDIATE RELEASE
P&G DELIVERS STRONG SALES AND EPS GROWTH -
RAISES FISCAL YEAR OUTLOOK
------------------------------------------
Organic Sales Growth Above Long-term Target,
Base Business Eps Growth of 19% to 20%
CINCINNATI, May 3, 2006 - The Procter & Gamble Company (NYSE:PG) announced
earnings per share of $0.63 for the January - March quarter. Earnings per share
grew behind a six percent increase in organic sales coupled with significant
expansion in both gross and operating profit margin. The company's organic sales
increase was broad-based across all business segments and in both developed and
developing regions. Reported net sales, which include the Gillette business,
increased 21 percent, to $17.25 billion.
"The combination of strong topline momentum, improving gross margins and
good progress on Gillette integration gives us the confidence to raise our EPS
outlook for the fiscal year," said Chairman of the Board, President and Chief
Executive A. G. Lafley. "P&G is delivering strong, sustainable earnings growth
despite Gillette dilution. Excluding Gillette, P&G is on track to deliver a
fourth consecutive year of double digit EPS growth."
EXECUTIVE SUMMARY
- -----------------
o Unit volume for the quarter grew 22 percent, driven by solid organic growth
in both developed and developing regions and the addition of the Gillette
business. Organic volume, which excludes the impacts of acquisitions and
divestitures, increased five percent behind double digit developing market
growth. Volume growth was broad-based behind product innovations that drove
market share growth.
o Net sales grew 21 percent to $17.25 billion. Organic sales, which exclude
the impacts of acquisitions, divestitures and foreign exchange, increased
six percent, exceeding the top end of the company's base business long-term
organic growth target range of three to five percent.
o Net earnings increased 37 percent to $2.21 billion behind sales growth and
significant margin improvement. Operating margin increased by 160 basis
points behind an expansion in gross margin of 110 basis points as the mix
benefits of Gillette, along with volume growth, price increases and cost
savings initiatives more than offset higher commodity costs.
o Earnings per share were $0.63, up seven percent versus the prior year,
including an estimated $0.07-$0.08 of dilution from the Gillette
acquisition. Dilution from Gillette was within the company's prior guidance
range. Base business earnings per share, which exclude the impact of
Gillette dilution, grew 19 to 20 percent. Earnings per share also benefited
by $0.01 from a lower than expected tax rate due to a favorable tax
settlement in the quarter.
KEY FINANCIAL HIGHLIGHTS
- ------------------------
o Net sales increased 21 percent to $17.25 billion, including a negative
three percent foreign exchange impact. Sales increased behind the addition
of Gillette and five percent organic volume growth. Organic sales increased
six percent in the quarter. Pricing increases and favorable product mix
each added one percent to sales growth.
o Gross margin expanded by 110 basis points in the quarter to 51.7%.
Commodity cost increases had a negative impact on gross margin of about 100
basis points. Organic volume growth, pricing and cost savings projects
roughly offset commodity cost increases while the mix benefit from adding
the Gillette business drove margin expansion.
o Selling, General and Administrative expenses (SG&A) as a percentage of
sales improved by 60 basis points in the quarter. This was driven by strong
organic sales growth, good overhead cost control and high base period
marketing spending against new product initiatives.
o The company's operating cash flow was $3.44 billion during the quarter, an
increase of 31 percent, versus the prior year period. Operating cash
improved behind the addition of Gillette and earnings growth on the base
business. Working capital increased cash versus the prior year period due
primarily to a reduction in accounts receivables during the quarter. Free
cash flow, defined as operating cash flow less capital spending, was $2.80
billion. Free cash flow productivity was 127 percent during the quarter,
bringing the fiscal year to date free cash flow productivity to 96 percent,
slightly ahead of the comparable prior year period. Capital spending for
the quarter was 3.7% of sales.
o The company repurchased $3.7 billion of P&G stock during the quarter as
part of its previously announced Gillette share repurchase program,
including some transactions that settled in April. This brings the
cumulative value of shares purchased under the program to $15.8 billion.
The company continues to expect to repurchase about $20 billion in total
under the program and to complete the program by mid-calendar year 2006.
BUSINESS SEGMENT DISCUSSION
- ---------------------------
The following provides perspective on the company's January - March results
by business segment.
P&G BEAUTY
- ----------
o Beauty volume increased eight percent for the quarter behind solid organic
volume growth and the addition of Gillette Personal Care. Organic volume
increased four percent with broad-based growth across categories and double
digit developing region growth. Skin Care volume increased double digits
behind strong growth on Olay. Cosmetics volume decreased versus last year
due to declines on Max Factor in North America resulting from more focused
distribution. Retail Hair Care volume increased mid-single digits behind
strong growth on Pantene, Head and Shoulders and Rejoice. Beauty net sales
increased by six percent to $5.16 billion driven by the addition of
Gillette Personal Care, organic volume growth and a one percent favorable
product mix impact, partially offset by three percent of unfavorable
foreign exchange trends. Organic sales increased five percent. Net earnings
in Beauty increased 10 percent to $738 million behind the addition of
Gillette, solid organic sales growth, reduced Wella integration costs and a
more profitable product mix, partially offset by an increase in commodity
costs and marketing investments.
P&G FAMILY HEALTH
- -----------------
o Health Care volume increased 18 percent for the quarter, including the
addition of Gillette Oral Care. Despite positive share trends across most
businesses and regions, organic volume declined by one percent.
Year-on-year comparisons were significantly impacted by a very strong base
period in which volume grew 14 percent behind the rebuild of Prilosec OTC
trade inventory following an allocation period. The prior year also
benefited from a late flu season in North America and Western Europe.
Importantly, market shares grew in Oral Care, Respiratory and on Prilosec
OTC. Health Care net sales grew 21 percent to $2.43 billion due primarily
to the addition of Gillette Oral Care. Organic sales increased three
percent. Favorable product mix in Pharmaceuticals and Personal Health and
on the base Oral Care business added three percent to sales growth. In
addition, previously announced price increases in Pharmaceuticals and
Personal Health added one percent to sales growth, but were offset by one
percent of unfavorable foreign exchange rate trends. Net earnings in Health
Care grew 28 percent to $298 million, primarily behind the addition of the
Gillette Oral Care business and margin expansion on the base business.
o Baby Care and Family Care volume increased two percent in the quarter, with
organic volume up three percent. Baby Care volume increased in the
low-single digits with developing regions up double digits behind strong
market share results in China and in Central and Eastern Europe. In
developed regions, market share on Pampers in North America was in-line
with the prior year period while continued pricing pressure from private
label brands drove some softness on the Luvs brand. Diaper market share
remained strong in Western Europe at over 54%. Family Care organic volume
grew in the mid-single digits, largely behind Bounty and on the continued
success of the Charmin Basic initiative. Net sales in the segment were
$3.03 billion, down one percent versus the prior year, including a negative
three percent foreign exchange impact. Previously announced price increases
in North America Baby Care, coupled with a late January increase in North
America Family Care, added two percent to sales growth. Disproportionate
growth in mid-tier products and in developing regions resulted in a
negative two percent mix effect. Net earnings increased two percent to $326
million against a strong base period in which earnings increased 60% driven
by 13 percent sales growth. Earnings growth was driven by organic sales
growth and margin improvements.
P&G HOUSEHOLD CARE
- ------------------
o Fabric Care and Home Care volume increased seven percent. Growth was
broad-based across regions and across both Fabric Care and Home Care driven
by continued successful initiative activity including Tide with Febreze,
Bounce with Febreze, Gain Joyful Expressions, Bold Liquid Tablets and
Febreze Noticeables. Net sales increased seven percent to $4.08 billion,
including a negative two percent foreign exchange impact. Pricing activity,
primarily in Latin America Fabric Care and North America Dish Care, added
two percent to sales growth. Earnings grew 13 percent to $545 million
behind sales growth and margin expansion. Operating margin expanded as
volume growth, pricing activity and cost savings projects offset increased
commodity costs and initiative marketing investments.
o Snacks and Coffee volume increased three percent. Coffee volume increased
mid-single digits as Folgers market share, which was impacted by
disruptions related to Hurricane Katrina, returned to pre-hurricane levels
during the quarter. Snacks volume was flat versus the prior year period.
Net sales for the segment increased four percent to $796 million, including
a negative two percent impact from unfavorable foreign exchange rate
trends. Sales benefited by three percent from previously announced Coffee
price increases. Earnings were up 12 percent to $109 million driven by
sales growth and an insurance recovery from Hurricane Katrina, which more
than offset current quarter hurricane-related costs.
GILLETTE (Comparisons are Versus Published Pro Forma results released on
October 4, 2005)
- ------------------------------------------------------------------------
o Blades and Razors sales increased one percent during the quarter to $1.19
billion, including a negative two percent foreign exchange impact. The
launch of Fusion in North America led to a significant increase in sales in
the region but was partially offset by a decline in Western Europe. In
Western Europe, sales were down despite a one point increase in market
share to 75 percent. This was due to a very strong base comparison period
that included the launch of M3Power and Venus Disposables. Additionally,
sales were impacted by a planned reduction in distributor inventory levels
in several developing countries in Asia where the Gillette business was
integrated into existing P&G distributors. Overall, Blades and Razors
volume/mix increased two percent and previously announced price increases
added one percent to sales growth. Global market share on the Gillette
Blades and Razors franchise grew roughly one point versus the prior year
period to 73 percent. Earnings before income taxes were $361 million, down
17 percent versus the prior year due primarily to increased amortization
charges from purchase accounting adjustments that impacted earnings before
income taxes by 20 percent. Earnings benefited from strong sales in North
America and synergy savings from overhead cost reductions, largely offset
by increased marketing investment behind the Fusion launch and the sales
declines in Western Europe and Asia. Net earnings for the segment were $265
million in the quarter.
o Duracell and Braun sales were $763 million, down one percent versus the
prior year including three percent of unfavorable foreign exchange. In the
Duracell business, market share growth and price increases taken in North
America to compensate for rising commodity costs were more than offset by
unfavorable foreign exchange, strong competitive activity in Western Europe
and unfavorable mix due to a trend toward larger pack sizes. Braun sales
increased in North America behind Tassimo, but were partially offset by
unfavorable foreign exchange and strong competitive activity in Germany.
Overall, volume/mix and pricing each contributed one percent to segment
sales growth, but were offset by negative three percent of unfavorable
foreign exchange. Earnings before income taxes increased one percent to $76
million, including purchase accounting adjustments that negatively impacted
earnings before income taxes by 13 percent. Earnings grew ahead of sales
primarily because of base period charges for the shutdown of the Lexington
manufacturing facility and synergy savings from overhead cost reductions.
In addition, cost savings efforts resulting largely from the Gillette
Functional Excellence program more than offset the effect of increased
commodity costs. Net earnings for the segment were $54 million in the
quarter.
APRIL - JUNE AND FISCAL YEAR GUIDANCE
- -------------------------------------
For the current fiscal year, the company expects its fourth consecutive
year of base business growth at or above its long-term growth targets. Organic
sales, which exclude the impact of foreign exchange, acquisitions and
divestitures, are expected to grow six to seven percent. The sales growth
estimate includes a positive one percent contribution from pricing and mix.
Foreign exchange is expected to have a negative one percent impact on sales
growth while acquisitions and divestitures are expected to add about 14 percent
growth to sales. Net sales are expected to grow 19 to 20 percent for the fiscal
year.
Earnings per share for the fiscal year are now expected to be between $2.61
and $2.63. The company raised the mid-point of its earnings per share estimate
by $0.02 due to strong base business performance in the March quarter and the
good progress the company is making on the Gillette integration. The earnings
per share estimate includes $0.19 - $0.23 of Gillette dilution. The dilution
estimate includes $0.10 to $0.11 of one-time expenses.
In the April - June quarter, the company expects organic sales, which
exclude the impact of acquisitions, divestitures and foreign exchange, to grow
four to six percent compared to a very strong base period in which organic sales
grew 9 percent. This includes up to one percent impact from pricing and mix.
Foreign exchange is estimated to have a negative one to two percent impact on
sales growth. Acquisitions and divestitures are expected to add 18 to 19
percent, resulting in net sales growth of 20 to 24 percent in the June quarter.
Earnings per share for the June quarter are expected to be $0.52 to $0.54.
This reflects the timing change of the favorable tax settlement from the June
quarter to the March quarter as well as higher non-operating income in the June
quarter versus the prior year period due to higher interest income and the
planned impact of divestitures. For the fiscal year, the company continues to
expect non-operating income to be down as a percentage of total net earnings.
The June earnings per share estimate includes $0.06 to $0.09 per share of
Gillette dilution. This dilution estimate includes one-time expenses of $0.03 -
$0.04 per share. Excluding the impact of Gillette dilution, earnings per share
for the June quarter are expected to be up high teens versus a strong year-ago
base period.
FORWARD LOOKING STATEMENTS
- --------------------------
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 Company's acquisition of The Gillette Company, and to achieve
the cost and growth synergies in accordance with the stated goals of the
Gillette transaction, and (ii) the Domination and Profit Transfer Agreement with
Wella; (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 PROCTER & GAMBLE 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.
# # #
P&G MEDIA CONTACT:
- -----------------
In the US: 1-866-PROCTER or 1-866-776-2837
International: +1-513-945-9087
P&G INVESTOR RELATIONS CONTACT:
- ------------------------------
Chris Peterson - 513-983-2414
THE PROCTER & GAMBLE COMPANY
EXHIBIT 1: NON-GAAP MEASURES
In accordance with the SEC's Regulation G, the following provides
definitions of the non-GAAP measures used in the earnings release and the
reconciliation to the most closely related GAAP measure.
ORGANIC SALES GROWTH. Organic sales growth is a non-GAAP measure of sales
growth excluding the impacts of acquisitions, divestitures and foreign exchange
from year-over-year comparisons. We believe this provides investors with a more
complete understanding of underlying sales trends by providing sales growth on a
consistent basis.
The reconciliation of reported sales growth to organic sales in the January
- - March 2006 quarter:
P&G Health Baby and
Total P&G Beauty Care Family Care
--------- ------ ------ -----------
Total Sales Growth 21% 6% 21% -1%
Less: Foreign Exchange Impact 3% 3% 1% 3%
Less: Acquisition/Divestiture Impact -18% -4% -19% 1%
---- ---- ---- ----
Organic Sales Growth 6% 5% 3% 3%
Fabric and Snacks
Home Care and Coffee
---------- ----------
Total Sales Growth 7% 4%
Less: Foreign Exchange Impact 2% 2%
Less: Acquisition/Divestiture Impact 0% 0%
---- ----
Organic Sales Growth 9% 6%
APRIL-JUNE 2005:
- ---------------
Total P&G
---------
Total Sales Growth 10%
Less: Foreign Exchange Impact -2%
Less: Acquisition/Divestiture Impact 1%
----
Organic Sales Growth 9%
BASE BUSINESS EPS. Base EPS growth is defined as diluted earnings per share
growth on the company's business excluding the impact of Gillette dilution.
Management views this as a more comparable measure of year-on-year earnings per
share growth since the effects of Gillette only impact the current year period.
The following provides a reconciliation of Base Business EPS and Base Business
EPS growth in the March quarter versus the comparable prior year period:
Diluted EPS per Share (January-March 2006) $0.63
Gillette Dilution Impact (January - March 2006) $0.07 - $0.08
-------------
Base Business EPS (January - March 2006) $0.70 - $0.71
Diluted EPS (January - March 2005) $0.59
Base Business EPS Growth 19% - 20%
FREE CASH FLOW. Free cash flow is defined as operating cash flow, less
capital spending. We view free cash flow as an important measure because it is
one factor in determining the amount of cash available for dividends and
discretionary investment. Free cash flow is also one of the measures used to
evaluate senior management and is a factor in determining their at-risk
compensation.
FREE CASH FLOW PRODUCTIVITY. Free cash flow productivity is defined as the
ratio of free cash flow to net earnings. The Company's long-term target is to
generate free cash at or above 90 percent of net earnings. Free cash flow is
also one of the measures used to evaluate senior management. The reconciliation
of free cash flow and free cash flow productivity is provided below ($
millions):
Operating Capital Free Net Free Cash Flow
Cash Flow Spending Cash Flow Earnings Productivity
- --------------------------------------------------------------------------------
Jan - Mar '06 $3,439 $(637) $2,802 $2,211 127%
Jul - Mar '06 $8,185 $(1,666) $6,519 $6,786 96%
Jul - Mar '05 $6,589 $(1,386) $5,203 $5,531 94%
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
--------------------------------------------------
JFM QUARTER
--------------------------------------------------
JFM 06 JFM 05 % CHG
--------------- --------------- ----------------
NET SALES $ 17,250 $ 14,287 21 %
COST OF PRODUCTS SOLD 8,340 7,055 18 %
--------------- ---------------
GROSS MARGIN 8,910 7,232 23 %
SELLING, GENERAL & ADMINISTRATIVE EXPENSE 5,559 4,690 19 %
--------------- ---------------
OPERATING INCOME 3,351 2,542 32 %
TOTAL INTEREST EXPENSE 301 222
OTHER NON-OPERATING INCOME, NET 79 60
--------------- ---------------
EARNINGS BEFORE INCOME TAXES 3,129 2,380 31 %
INCOME TAXES 918 766
NET EARNINGS 2,211 1,614 37 %
=============== ===============
EFFECTIVE TAX RATE 29.3 % 32.2 %
PER COMMON SHARE:
BASIC NET EARNINGS $ 0.67 $ 0.63 6 %
DILUTED NET EARNINGS $ 0.63 $ 0.59 7 %
DIVIDENDS $ 0.28 $ 0.25
AVERAGE DILUTED SHARES OUTSTANDING 3,510.5 2,730.3
COMPARISONS AS A % OF NET SALES Basis Pt Chg
COST OF PRODUCTS SOLD 48.3 % 49.4 % (110)
GROSS MARGIN 51.7 % 50.6 % 110
SELLING, GENERAL & ADMINISTRATIVE EXPENSE 32.2 % 32.8 % (60)
OPERATING MARGIN 19.4 % 17.8 % 160
EARNINGS BEFORE INCOME TAXES 18.1 % 16.7 % 140
NET EARNINGS 12.8 % 11.3 % 150
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions Except Per Share Amounts)
Consolidated Earnings Information
---------------------------------------------------
FYTD
---------------------------------------------------
3/31/2006 3/31/2005 % CHG
-------------- --------------- --------------
NET SALES $ 50,380 $ 42,483 19 %
COST OF PRODUCTS SOLD 24,231 20,563 18 %
--------------- ---------------
GROSS MARGIN 26,149 21,920 19 %
SELLING, GENERAL & ADMINISTRATIVE EXPENSE 15,849 13,607 16 %
--------------- ---------------
OPERATING INCOME 10,300 8,313 24 %
TOTAL INTEREST EXPENSE 819 603
OTHER NON-OPERATING INCOME, NET 221 297
--------------- ---------------
EARNINGS BEFORE INCOME TAXES 9,702 8,007 21 %
INCOME TAXES 2,916 2,476
NET EARNINGS 6,786 5,531 23 %
=============== ===============
EFFECTIVE TAX RATE 30.1 % 30.9 %
PER COMMON SHARE:
BASIC NET EARNINGS $ 2.22 $ 2.15 3 %
DILUTED NET EARNINGS $ 2.10 $ 2.01 4 %
DIVIDENDS $ 0.84 $ 0.75
AVERAGE DILUTED SHARES OUTSTANDING 3,235.4 2,749.4
COMPARISONS AS A % OF NET SALES Basis Pt Chg
COST OF PRODUCTS SOLD 48.1 % 48.4 % (30)
GROSS MARGIN 51.9 % 51.6 % 30
SELLING, GENERAL & ADMINISTRATIVE EXPENSE 31.5 % 32.0 % (50)
OPERATING MARGIN 20.4 % 19.6 % 80
EARNINGS BEFORE INCOME TAXES 19.3 % 18.8 % 50
NET EARNINGS 13.5 % 13.0 % 50
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Consolidated Cash Flows Information
-------------------------------------
Nine Months Ended March 31
-------------------------------------
2006 2005
---------- ----------
BEGINNING CASH 6,389 4,232
OPERATING ACTIVITIES
NET EARNINGS 6,786 5,531
DEPRECIATION AND AMORTIZATION 1,891 1,403
SHARE-BASED COMPENSATION EXPENSE 400 370
DEFERRED INCOME TAXES 116 445
CHANGES IN:
ACCOUNTS RECEIVABLE (250) (197)
INVENTORIES (161) (778)
ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES (582) (115)
OTHER OPERATING ASSETS & LIABILITIES (81) (221)
OTHER 66 151
---------- ----------
TOTAL OPERATING ACTIVITIES 8,185 6,589
---------- ----------
INVESTING ACTIVITIES
CAPITAL EXPENDITURES (1,666) (1,386)
PROCEEDS FROM ASSET SALES 352 368
ACQUISITIONS, NET OF CASH ACQUIRED 216 (528)
CHANGE IN INVESTMENT SECURITIES 491 (56)
---------- ----------
TOTAL INVESTMENT ACTIVITIES (607) (1,602)
---------- ----------
FINANCING ACTIVITIES
DIVIDENDS TO SHAREHOLDERS (2,645) (1,998)
CHANGE IN SHORT-TERM DEBT (6,009) 1,317
ADDITIONS TO LONG TERM DEBT 17,136 3,048
REDUCTION OF LONG TERM DEBT (4,367) (1,583)
PROCEEDS FROM THE EXERCISE OF STOCK OPTIONS AND OTHER 1,119 406
TREASURY PURCHASES (10,596) (3,580)
---------- ----------
TOTAL FINANCING ACTIVITIES (5,362) (2,390)
---------- ----------
EXCHANGE EFFECT ON CASH 70 243
---------- ----------
CHANGE IN CASH AND CASH EQUIVALENTS 2,286 2,840
---------- ----------
ENDING CASH 8,675 7,072
========== ==========
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Consolidated Balance Sheet Information
March 31, 2006 June 30, 2005
-------------- --------------
CASH AND CASH EQUIVALENTS $ 8,675 $ 6,389
INVESTMENTS SECURITIES 1,524 1,744
ACCOUNTS RECEIVABLE 5,404 4,185
TOTAL INVENTORIES 6,732 5,006
OTHER 4,280 3,005
-------------- --------------
TOTAL CURRENT ASSETS 26,615 20,329
NET PROPERTY, PLANT AND EQUIPMENT 18,473 14,332
NET GOODWILL AND OTHER INTANGIBLE ASSETS 87,857 24,163
OTHER NON-CURRENT ASSETS 3,277 2,703
-------------- --------------
TOTAL ASSETS $ 136,222 $ 61,527
============== ==============
ACCOUNTS PAYABLE $ 4,063 $ 3,802
ACCRUED AND OTHER LIABILITIES 9,219 7,531
TAXES PAYABLE 2,924 2,265
DEBT DUE WITHIN ONE YEAR 3,837 11,441
-------------- --------------
TOTAL CURRENT LIABILITIES 20,043 25,039
LONG-TERM DEBT 33,916 12,887
OTHER 17,239 5,126
-------------- --------------
TOTAL LIABILITIES 71,198 43,052
-------------- --------------
-------------- --------------
TOTAL SHAREHOLDERS' EQUITY 65,024 18,475
-------------- --------------
-------------- --------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 136,222 $ 61,527
============== ==============
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
(Amounts in Millions)
Consolidated Earnings Information
---------------------------------------------------------------------------------------------
Three Months Ended March 31, 2006
---------------------------------------------------------------------------------------------
% Change Earnings % Change % Change
Versus Before Versus Net Versus
Net Sales Year Ago Income Taxes Year Ago Earnings Year Ago
---------------------------------------------------------------------------------------------
P&G BEAUTY $ 5,155 6% $ 1,041 7% $ 738 10%
HEALTH CARE 2,427 21% 446 29% 298 28%
BABY CARE AND FAMILY CARE 3,031 -1% 530 5% 326 2%
---------------------------------------------------------------------------------------------
P&G FAMILY HEALTH 5,458 8% 976 15% 624 13%
FABRIC CARE AND HOME CARE 4,080 7% 814 13% 545 13%
SNACKS AND COFFEE 796 4% 177 13% 109 12%
---------------------------------------------------------------------------------------------
P&G HOUSEHOLD CARE 4,876 6% 991 13% 654 13%
BLADES AND RAZORS 1,187 N/A 361 N/A 265 N/A
DURACELL AND BRAUN 763 N/A 76 N/A 54 N/A
---------------------------------------------------------------------------------------------
GLOBAL GILLETTE 1,950 N/A 437 N/A 319 N/A
TOTAL BUSINESS SEGMENT 17,439 20% 3,445 28% 2,335 30%
CORPORATE (189) N/A (316) N/A (124) N/A
---------------------------------------------------------------------------------------------
TOTAL COMPANY 17,250 21% 3,129 31% 2,211 37%
---------------------------------------------------------------------------------------------
Nine Months Ended March 31, 2006
---------------------------------------------------------------------------------------------
% Change Earnings % Change % Change
Versus Before Versus Net Versus
Net Sales Year Ago Income Taxes Year Ago Earnings Year Ago
---------------------------------------------------------------------------------------------
P&G BEAUTY $ 15,514 7% $ 3,285 6% $ 2,369 11%
HEALTH CARE 7,149 21% 1,582 36% 1,061 36%
BABY CARE AND FAMILY CARE 9,066 2% 1,561 0% 976 0%
---------------------------------------------------------------------------------------------
P&G FAMILY HEALTH 16,215 10% 3,143 15% 2,037 16%
FABRIC CARE AND HOME CARE 12,376 8% 2,665 10% 1,779 10%
SNACKS AND COFFEE 2,429 3% 429 -7% 277 -6%
---------------------------------------------------------------------------------------------
P&G HOUSEHOLD CARE 14,805 8% 3,094 8% 2,056 8%
BLADES AND RAZORS 2,340 N/A 736 N/A 537 N/A
DURACELL AND BRAUN 2,042 N/A 319 N/A 219 N/A
---------------------------------------------------------------------------------------------
GLOBAL GILLETTE 4,382 N/A 1,055 N/A 756 N/A
TOTAL BUSINESS SEGMENT 50,916 18% 10,577 22% 7,218 24%
CORPORATE (536) N/A (875) N/A (432) N/A
---------------------------------------------------------------------------------------------
TOTAL COMPANY 50,380 19% 9,702 21% 6,786 23%
JANUARY - MARCH NET SALES INFORMATION
(Percent Change vs. Year Ago) *
Volume Volume
With Without
Acquisitions/ Acquisitions/ Total Total Impact
Divestitures Divestitures FX Price Mix/Other Impact Ex-FX
-------------------------------------------------------------------------------------------------
P&G BEAUTY 8% 4% -3% 0% 1% 6% 9%
P&G FAMILY HEALTH
HEALTH CARE 18% -1% -1% 1% 3% 21% 22%
BABY CARE AND FAMILY CARE 2% 3% -3% 2% -2% -1% 2%
P&G HOUSEHOLD CARE
FABRIC CARE AND HOME CARE 7% 7% -2% 2% 0% 7% 9%
SNACKS AND COFFEE 3% 3% -2% 3% 0% 4% 6%
GLOBAL GILLETTE
BLADES & RAZORS N/A N/A N/A N/A N/A N/A N/A
DURACELL AND BRAUN N/A N/A N/A N/A N/A N/A N/A
TOTAL COMPANY 22% 5% -3% 1% 1% 21% 24%
* These sales percentage changes are approximations based on quantitative formulas that are consistently applied.