P&G management reported today that for the current quarter:
Core earnings per share are now expected to be in the range of $0.75 to $0.79 per share, compared to a prior range of $0.79 to $0.85.
And, for the years ahead:
Organic sales are expected to increase in the range of two to four percent. Core earnings per share are expected to be in-line to up mid-single digits percentage versus fiscal 2012 results.
In the cases, Wall St. expected better, although currency exchange rates, which P&G cannot control, will be one culprit in 2013 shortfalls.
Like many CEOs with no acceptable formula to improve prospects, McDonald has come up with a series of gimmicks that he calls a turnaround program. He has named his the “Total Shareholder Return (TSR)” plan, which is driven primarily by cost cuts. He is, at least, on target to accomplish those. Management noted:
P&G reiterated its objective to deliver $10 billion in cost savings by the end of fiscal year 2016, a program that includes a reduction of approximately 5,700 non-manufacturing roles by the end of fiscal year 2013.
In his comments about P&G’s future, McDonald said:
“The entire P&G organization — and specifically its leadership — is committed to winning.”
P&G’s results magnify the failure of McDonald to “win” his battle to make the company a success again.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks