Take a virtual shopping spree to find all Procter & Gamble products.
Buy Photo  David Taylor, CEO of Procter & Gamble, was confronted with a new $ 4.2 billion health acquisition. English: www.germnews.com The Wall Street analysts held a tough teleconference on Thursday about the sputtering performance of tide manufacturers.
"How long should investors wait (until the company turns over)?" asked Steve Powers, Deutsche Bank analyst, CEO David Taylor The first question arose in the conference call.
The question was eerily repeated by those who five years ago mirrored Bob McDonald, CEO, a month before he retired abruptly.
P & G posted modest earnings and revenue projections of $ 2.5 billion, with $ 16.3 billion of third quarter sales ending on March 30. But the company's results were peppered with worsening numbers: organic sales (which excludes effects of foreign exchange, mergers and acquisitions) climbed by an uninspiring 1 percent – slower than the 2 percent growth during the first
Even the closely observed gross profit margin of the Company Declined 1 Percent to 48.8 Per Cent, Reflecting Pressure from Higher Raw Material Costs and Not Pricing Pricing
"I wonder what Plan B is … we've heard it's not been that way for five years Usual, "said Bernstein analyst Ali Dibadj later in the call.
Taylor told analysts that two companies, diapers and razors, have proven to be "bigger challenges" than expected, but progress has been made.
Taylor pointed to more downsizing and called the company's "new megafactory" an improved "productivity" West Virginia boosts production. The company is already closing factories in Kansas City and Brockville, Canada, and cutting jobs in Iowa City as work moves to the new facility.
The company has had more than 34,000 jobs since 2012 – more than a quarter of its payroll – cut by a combination of buyouts and business units. The company employs 95,000 people worldwide, including 10,000 local employees.
"I do not think investors have to wait too long," Taylor replied, adding that the fighting units would "turn around" in the next fiscal year. "It's not business-as-usual, and we take the necessary steps to change."
P & G shares fell 5.4% or $ 4.23 to $ 74.20 in early trading on Thursday, a low since Taylor took the helm in November of 2015.
hours ago The call P & G announced that it would take over the consumer health business of the German Merck KGaA for 4.2 billion dollars.
The deal likely has the approval of new board member and hedge fund activist Nelson Peltz, who advocated P & G's acquisitions to stimulate growth.
P & G's declining results and share price, however, are likely to reinforce the influence of Peltz. In the biggest proxy fight in history, Peltz campaigned for his seat last year and criticized the bureaucracy of the company. He called for cuts in management levels and reduced P & G's five global business units to three.
On Thursday, P & G warned that its organic sales for the Fiscal year to the lower end of its previous forecast of 2 to 3 percent.
Chief Financial Officer Jon Möller admitted in an interview with analysts that P & G could reach the 2 percent mark by "rounding up".
P & G returned 95 cents in diluted earnings per share and $ 1.00 in core earnings per share – surpassing the 98 cents forecast by Wall Street analysts, according to Zacks Research. Last year, P & G reported $ 2.5 billion in revenue of $ 15.6 billion.
Nevertheless, P & G openly commented on a "challenging macroeconomic environment".
P & G benefited from lower prices as unit volumes rose and consumers exchanged more expensive products, but these gains were offset by the lower prices that Procter products ordered. Total revenues increased mainly due to a weakening US dollar, with foreign exchange contributing 4 percent to sales.
As sales rose more slowly, P & G said the company's core annual profit would likely rise by 6 to 8 percent, previous reach of 5 to 8 percent.
P & G's new acquisition, due to be completed by June 2019, will value P & G's $ 7.5 billion health care business with strong oral care and gastrointestinal brands with a fast-growing basket of foreign brands $ 1 billion boost one year of complementary business in various over-the-counter categories.
P & G will take over 3,500 employees from Merck KGaA. Company officials said it was too early to say how many positions could be cut during integration.
Merck KGaA is the former parent company of Darmstadt-based independent pharmaceutical company based in Darmstadt, which is not involved in this business.
The top brands include Neurobion, Dolo-Neurobion, Femibion, Nasivin, Bion3, Seven Seas, and Kytta, which are used to treat muscle, joint, and back pain, colds and headaches, as well as products designed to support physical activity and mobility in others Deliver treatments. The brands are sold mainly in Europe, Latin America and Asia.
P & G officials said the transaction will "complement" the company's health brands, Vicks, Metamucil, Pepto-Bismol, Crest and Oral-B.
More: According to information from CNBC, P & G intends to acquire the consumer strain for drugs in talks with Pfizer
Taylor added that the store would be selling the over-the-counter product in strengthen the 15 most important markets in the world.  P & G officials said the acquisition will replace the expiring joint venture with Israel's Teva Pharmaceutical Industries.
The Enquirer will update this story.
Read or Share this story: https://cin.ci/2qKcW0w