P&G bucks downsizing trend
At a time when many companies are reducing their predicted earnings and announcing cut backs, Procter & Gamble has told analysts that not only is it on track to meet its earnings forecasts, but that it is also looking to embark on an ambitious overseas expansion programme.
At a time when many companies are reducing their predicted earnings and announcing cut backs, Procter & Gamble has told analysts that not only is it on track to meet its earnings forecasts, but that it is also looking to embark on an ambitious overseas expansion programme.
Speaking at the company’s 2008 Analyst Meeting in New York, chairman and ceo A G Lafley confirmed that P&G expects to meet its earnings per share guidance for both the October to December quarter ($1.58 to $1.63 per share) and fiscal 2009 ($4.28 to $4.38 per share), despite the volatile working environment. While stressing that P&G wasn’t recession-proof, he credited the company and the fmcg sector in general with being recession-resistant.
P&G also confirmed its intention to expand its overseas presence, announcing that “almost all” of the 20 new manufacturing plants due to open over the next four years will be outside of its established markets. “We just have a huge opportunity to service urban consumer households in developing markets who have plenty of income, even with an economic downturn,” Lafley said of the plans.