US: P&G returns to growth under new CEO | Progresiv
Procter & Gamble has reported a rise in underlying sales for its second quarter, marking a positive start to the leadership of new CEO David Taylor. For the quarter, sales were down 8.5% to 16.9 billion dollars, but organic sales rose by 2%, reversing a 1% decline in the first quarter. 
The group also reported better-than-expected underlying earnings per share, helped by cost-cutting measures. However, the group’s decision to hike prices to offset the strength of the US dollar led to volumes declining across all categories.
CFO Jon Moeller said P&G now aims to reduce non-manufacturing costs by 25%-30% by 2016, a year ahead of schedule. He also said the group will continue investing, despite the impact of the dollar on its international results, while focusing on more-profitable brands in overseas markets.
For the full year, P&G expects the dollar to reduce sales by 7 percentage points, up from the 5-6 percentage points it estimated earlier. Overall sales are still expected to decline in the high-single digits. (www.kamcity.com)
