The Procter & Gamble Company, while presenting at an institutional investor conference in Boston, confirmed its fiscal year 2010 and July–September quarter outlook for organic sales growth. The company also stated it expects to return to organic sales growth in the October–December quarter compared to prior year levels, following two quarters of organic sales declines.
"We acted with urgency to protect the structural economics of our business last year, and we are acting with urgency this year to deliver profitable market share growth," said Bob McDonald, president and CEO.
Chief financial officer Jon Moeller added, "We clearly see that we are approaching an inflection point in P&G's organic sales trends. The innovations we are launching and the investments we are making are having an impact in the market. In addition, comparisons to prior year results will get easier as we move into the second quarter."
For fiscal year 2010, P&G confirmed previous guidance for organic sales growth of 1–3%. The company said it expects net sales in the range of flat to up three percent versus prior year levels, which includes a foreign exchange impact of zero to minus one percent. P&G now expects fiscal 2010 earnings per share in the range of $3.99 to $4.12 per share. This includes a one-time net increase in earnings of $0.44 per share from the sale of the pharmaceutical business, which will be partially offset by $0.10 to $0.12 per share of earnings dilution related to the transaction.
For the July–September quarter, P&G confirmed expectations for organic sales growth of zero to negative three percent. Foreign exchange is expected to reduce net sales by about seven percent resulting in net sales down seven to 10% versus the prior year. The company continues to estimate all-in earnings per share of $0.95 to $1.00 for the quarter.
For the October–December quarter, P&G said it expects organic sales growth of 1–4%. The company plans to provide a more detailed outlook for second quarter sales and earnings per share when it releases first quarter results on October 29, 2009.
