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P&G Reforecasts Amidst Slower Growth

Posted: June 25, 2012

The Procter & Gamble Company provided an overview of its strategic focus areas and preliminary financial guidance for the upcoming fiscal year 2013 at the Deutsche Bank Global Consumer Conference in Paris, France. Bob McDonald, P&G’s chairman of the board, president and CEO, said, “We are making the necessary adjustments to our growth strategy to increase focus on our core business and to achieve more balanced growth across geographies, product categories and the top and bottom lines.”

McDonald added, “The entire P&G organization—and specifically its leadership—is committed to winning. Winning requires we deliver on our total shareholder return (TSR) objectives. With more focus and better balance, we are confident we can deliver the level and quality of results that will enable P&G to win with our consumers, our customers and our shareholders.”

To achieve its objectives, P&G said it is prioritizing investments in its biggest, most profitable markets, on its biggest innovations and in its biggest emerging countries. In addition, the company clarified that it intends to maintain strong investment levels in markets it has recently entered.

P&G said it expects to deliver improved results by continuing to be the industry leader in innovation, by driving productivity improvements and cost savings at an accelerated pace, and by improving the consistency of execution in all facets of its operations. 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 addition to its discussion of adjustments to its strategic focus areas, P&G provided an update to its financial guidance for the April–June 2012 quarter and preliminary guidance for fiscal year 2013.