Forum Archive Index - March 2000

[moimoi@clear.net.nz]

Hi there,

Would anyone out there following US stocks like to try and convince me that
PG is a good buy.  I'm watching from a long term point of view.


Currently trading at a 3 year low at $53 after being hammered last week.
Its 5 year chart shows a stunning collapse from what was a period of steady
appreciation.

I include some comments from their CEO at the bottom of this posting.
I'd be interested in any comments!.

Procter & Gamble shares lost more than a third of their value Tuesday,
dragging down consumer stocks after the company warned that its fiscal 2000
earnings would be below expectations because of higher-than-expected costs
and pricing pressures.

Procter & Gamble pointed to higher manufacturing and other costs in Europe
along with a number of new initiatives launched on the continent; a delay
in payment related to the U.S. approval of P&G's osteoporosis drug Actonel;
and competitive pricing of new brands primarily in three South American
countries.

Procter & Gamble, which makes consumer products, said it expects to see top
line sales growth of 7 percent to 8 percent during the second half of the
year.

However, third-quarter earnings per share should fall 10 percent to 11
percent below that of last year's results, which compares to its previous
prediction of 7 percent to 9 percent below. For the fourth quarter,
earnings per share are expected to grow 16 to 18 percent vs. the year-ago
quarter.

As a result, the company is now estimating fiscal year earnings-per-share
growth of 7 percent compared to the original expectation of 13 percent.

"This year's growth progress has been achieved in half the time we
expected, even in a year of unprecedented organizational change," Chief
Executive Officer Durk Jager said in the statement. "We are getting more
innovations to market faster because of our Organization 2005 structure and
culture changes."

Despite the unexpected events, the company is not satisfied with its effort
to grow profit.

"We are making changes in the way we launch initiatives to better balance
long-term growth and near-term earnings, and are re-sharpening our focus on
cost reduction," Jager said. "We have proven we can grow sales at a high
single-digit rate; we must do it more efficiently to deliver much stronger
earnings growth in the future." 

moi






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