Companies and Brands
P&G Delivers Earnings; No Word of Activist Efforts
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Thomson Reuters had a normalized EPS estimate of $0.77 and sales were expected to be $20.26 billion in the quarter. On a net basis after items, P&G’s net from continuing operations was $0.74 per share. P&G also completed the sale of the Snacks business in the quarter, resulting in a net gain of $0.48 per share. Operating cash flow was $4.0 billion for the fourth quarter and free cash flow was $2.7 billion.
The company is maintaining earnings guidance of $3.80 to $4.00 in core earnings per share for its fiscal 2013. Net sales for fiscal 2013 are expected to be flat to negative by 2% due to a negative 4% impact from foreign exchange. P&G says that its organic sales are expected to rise 2% to 4%, that its pricing should add 2% to sales, and an unfavorable product and geographic mix is expected to reduce sales by 1%.
CEO Bob McDonald said:
We enter fiscal 2013 with very strong developing market momentum, strengthened plans on our core developed market business, and with the benefit of a $10 billion cost savings program, which is well underway. Despite a difficult macro environment, we see significant opportunities for top- and bottom-line growth.
Oddly enough, a keyword search for “activist” did not generate any mention in the press release.
Shares closed at $63.51 Thursday, and shares are indicated marginally higher with the broader market this morning. The 52-week range is $57.56 to $67.95.
JON C. OGG
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