A.G. Lafley tells Shareholders that P&G is Back on TrackCINCINNATI, Oct. 8, 2002 - Chairman, President and Chief Executive A.G. Lafley addressed The Procter & Gamble Company (PG: NYSE) shareholders at the company's annual meeting today. Lafley told shareholders that P&G is "returning to consistent, reliable earnings and cash growth."
For fiscal year 2002, P&G sales were up 4% and volume up 7%, including the impact of acquisitions and divestitures, with core earnings-per-share growth of 10% versus year ago. "Our businesses are competing in tough economic times and in a very competitive global marketplace, so we're encouraged by these results," added Lafley. "These are the kind of results shareholders expect from P&G, and we expect of ourselves."
P&G remains focused on its mission and what it does best - creating and building brands that deliver superior consumer and shareholder value. Lafley pointed out that P&G's stock outpaced the Dow and the S&P 500 this past year. "P&G is one of only two companies among Dow Industrials whose stock has grown since January 1, 2002," he added. "P&G is delivering superior shareholder return among our peer group."
"We're back on track because of the strength of P&G people worldwide and our focus on fundamentals," Lafley said. "We put the consumer at the heart of all we do. The consumer is boss, and the consumer demands the best value, every day."
Lafley underscored the importance of P&G brands, saying, "Branding is part of P&G's DNA. We have one of the most valuable leading brand portfolios in the world: twelve brands that each generate one to four billion dollars in P&G sales." P&G's biggest brands were present at the meeting, through banners on stage and product booths for display. P&G's Always®, Ariel®, Bounty®, Charmin®, Crest®, Downy/Lenor®, Folgers®, Iams®, Pampers®, Pantene®, Pringles® and Tide® are each included in the billion-dollar brand club. "Consumers choose to buy a P&G brand or a competing product thirty million times a day and use P&G brands over two billion times a day," emphasized Lafley. "Leading brands, billion-dollar brands are built on trust and loyalty we earn when we win these moments of truth."
Lafley also noted that P&G is innovating in every core category. For 2001, six of the top 10 best-selling, new, non-food products launched into the marketplace were P&G brands. "We are focused on bringing new products to market at the right price," added Lafley. The recent introduction of Crest Spinbrush® is a good example. Spinbrush is now available in 30 markets and has a 50% volume share of the growing, U.S. battery-powered brush category.
Lafley discussed the importance of continued financial and operating discipline. "We have strong corporate governance," stressed Lafley. "P&G's financial stewardship program reinforces managers' fiduciary responsibilities and provides for robust internal controls, financial accounting and reporting."
P&G will report results for the first quarter of its fiscal year on Oct. 29. While Lafley cannot provide specifics until then, he did say, "the momentum is continuing. P&G market shares are growing in more core categories, on more leading brands, at more top customers and in more big countries than last year."
Lafley closed his remarks with the following, "The essence of P&G is our people, and our brands. P&G people, and P&G brands, touch lives and improve life, every day."
Dividend Announcement
Prior to the start of the annual meeting of shareholders, directors declared a quarterly dividend of $0.41 per share on the common stock and series A ESOP convertible preferred stock, payable on or after Nov. 15, 2002 to shareholders of record at the close of business on Oct. 18, 2002.
All statements, other than statements of historical fact included in this news release, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. In addition to the risks and uncertainties noted in this news release, there are certain factors that could cause results to differ materially from those anticipated by some of the statements made. These include the achievement of the business unit volume and income growth projections (including the ability to achieve growth projections in significant developing markets), the successful integration of the Company's O-2005 structure, the ability to maintain key customer relationships, the achievement of the company's cost containment goals, the continued political and/or economic uncertainty in Latin America and the Middle East, any political and/or economic uncertainty due to terrorist activities, as well as factors listed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's most recently filed Forms 10-K and 8-Ks.
About Procter & Gamble
P&G is celebrating 165 years of providing trusted quality brands that make every day better for the world's consumers. We market nearly 300 brands - including Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Bounty®, Pringles®, Folgers®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Actonel®, Olay® and Clairol Nice 'n Easy® - in more than 160 countries around the world. The P&G community consists of nearly 102,000 employees working in almost 80 countries worldwide. Please visit www.pg.com for the latest news and in-depth information about P&G and its brands.
