Procter & Gamble quarterly profit in line, keeps year view

CINCINNATI, Ohio ― Procter & Gamble Co. posted a slight dip in quarterly profit that was in line with expectations as the world’s largest household products maker raised prices and notched sales gains in each unit.

The maker of Pampers diapers and Tide detergent earned $3.02 billion, or $1.03 per share, in the first quarter ended on Sept. 30, compared with $3.08 billion, or $1.03 per share, a year earlier. It had fewer shares outstanding in the most recent quarter.

P&G, which makes everything from Gillette razors to Pantene shampoo, announced or implemented price increases on brands that account for the majority of its U.S. sales and has pulled back on some promotional spending, which also effectively raises the prices consumers pay.

Sales rose 8.9 percent to $21.92 billion. Organic sales, which strip out the impact of acquisitions, divestitures and foreign exchange fluctuations, rose 4 percent, coming in at the high end of the company’s 2 percent to 4 percent forecast.

Analysts on average were looking for a profit of $1.03 per share on $21.53 billion in sales, according to Thomson Reuters I/B/E/S. P&G had forecast earnings of $1.00 to $1.04 per share.

The volume of goods sold rose 2 percent, excluding acquisitions, asset sales and currency fluctuations, with growth in developing regions partially offset by a decline in developed regions.

The company still expects full-year earnings of $4.17 to $4.33 per share, with sales up 3 percent to 6 percent. Analysts expect it to earn $4.20 per share this year.

For the current second quarter, which ends in December, P&G forecast earnings of $1.05 to $1.11 per share, with sales growth of 3 percent to 5 percent.

P&G shares rose 0.9 percent to $65.53 in thin premarket trade.

Procter & Gamble results top views, but outlook falls short

CHICAGO ― Procter & Gamble Co posted a bigger-than-expected rise in quarterly profit on Friday, as cost cuts and price increases helped mitigate the impact of more expensive materials and some sluggish markets such as the United States.

P&G also gave its first forecasts for its new fiscal year, which show that the world’s largest household products maker is likely to fall short of Wall Street’s expectations this quarter.

Shares of P&G, whose lineup includes Gillette razors and Olay skin creams, were down 0.5 percent at $59.26 in premarket trading.

P&G earned $2.51 billion, or 84 cents per share, in the fourth quarter ended in June, compared with $2.19 billion, or 71 cents per share, a year earlier.

Sales rose 10 percent to $20.86 billion.

Analysts on average expected the company to earn 82 cents per share on $20.63 billion in revenue, according to Thomson Reuters I/B/E/S.

Organic sales, which strip out the impact of acquisitions, divestitures and foreign exchange fluctuations, rose 5 percent. The volume of goods sold rose 3 percent.

For the first quarter ending in September, P&G forecast earnings per share of $1 to $1.04 from continuing operations, with organic sales up 2 percent to 4 percent.

For the fiscal year, P&G said it expected earnings per share of $4.17 to $4.33 from continuing operations, with organic sales up 3 percent to 6 percent.

Analysts on average were expecting the company to earn $1.14 this quarter and $4.26 this year.

Box helps Procter & Gamble move 18,000 users to the cloud

PALO ALTO, Calif. ― Box today announced that it signed Procter and Gamble as a customer, bringing Box’s cloud content management solution to 18,000 globally distributed P&G employees, with anticipated increased adoption over the next three years. The deployment represents the largest enterprise deal to date for Box.

“P&G’s deployment marks a major turning point for Box and, more broadly, cloud adoption in the enterprise,” said Aaron Levie, co-founder and CEO of Box. “Cloud services like Box are no longer merely filling the gaps between outdated systems or providing a workaround for frustrated users; they’re transforming the way entire organizations manage information and collaboration securely and at scale.”

“We’ve worked with Box on a smaller scale for a few years now, and over that time we’ve watched the Box platform mature into a powerful content management solution, while still maintaining a focus on end user experience and simplicity,” said Eleodor Sotropa, Associate Director, GBS Employee Services and Solutions. “With this next stage of adoption, Box will help transform the way our global employees share and access content across devices and drive collaboration in the cloud.”

Prior to this deal, Box powered internal and external content sharing and collaboration for a few P&G divisions. These early pilots and the subsequent 18,000-seat expansion have been championed by P&G’s Global Business Services organization, known for bringing innovative, cutting-edge technology to the organization’s 127,000 employees across more than 180 countries. Box’s services are designed to empower P&G employees to easily share and access information across devices, without any P&G maintenance or upgrades. Box benefits to P&G include:

Making it easy for employees to share content and collaborate across some of P&G’s offices.

Offering content access and sharing from any device with mobile applications for iPhone, iPad, and BlackBerry.

Providing IT with an easy-to-use administrative interface for reporting and managing corporate content on Box.

Longtime P&G men’s razor leader Bergh leaving to seek CEO post

CHICAGO ― Longtime Procter & Gamble Co. executive Charles “Chip” Bergh, a leader in the Gillette razor business, is leaving to try to become a chief executive officer of a major company, the household products maker said Tuesday.

Bergh, 53, is the latest in a string of executives leaving the company. Edward Shirley, a longtime Gillette executive, has announced plans to retire in January, while P&G veteran Robert Steele is retiring in September.

P&G has “the right team in place” to continue growing its beauty and grooming business, said CEO Bob McDonald.

“The large number of recent management departures is a sign that P&G is still in a state of disquiet,” said Sanford Bernstein analyst Ali Dibadj.

Cincinnati-based P&G is seen as a training ground for executives, but these days there are fewer top spots inside the company’s executive suite.

When Steele’s departure plans were announced in February, P&G consolidated from three global units to two. Steele, who joined P&G in 1976, also has his sights on trying to become CEO of a major company.

One company searching for a CEO is Newell Rubbermaid Inc. which last week cut its expectations in the face of rising costs. CEO Mark Ketchum plans to retire after six years at Newell and 33 years at P&G.

Bergh joined P&G as a brand assistant in cleaning products in 1983 and since then has worked in areas from food and beverage to razors. He became president of P&G’s global grooming business in 2006, the same year the Gillette unit launched Fusion, the top-selling blade and razor brand in the world. He was named president of global male grooming in 2009.

Patrice Louvet, the president of P&G’s global prestige unit, is replacing Bergh as president of global male grooming. Joanne Crewes, vice president of the global SKII and female beauty brands in the Australasian, ASEAN, India, Japan and Korea markets, is succeeding Louvet in the global prestige role.

Crewes’ knowledge of the Asian beauty consumer is “critical” to winning in prestige, McDonald said.

Louvet and Crewes will assume their new roles on July 1, and Bergh will leave the company as of Sept. 1, P&G said.