01—Abstract
Summary
Summary of the 8-K/A filed September 27, 2002. Cited figures are marked; the original filing is the authoritative source.
On September 27, 2002, Procter & Gamble (NYSE: PG) issued a news release, filed under Regulation FD via this amended Form 8-K, reaffirming its previously stated volume, sales, and earnings-per-share growth guidance for both the September 2002 quarter and fiscal year 2003.
Management said it is "comfortable" with the guidance ahead of CFO Clayt Daley's presentation at the October 2, 2002 Merrill Lynch Global Branded Consumer Products Conference. No new financial results were reported; the filing is a guidance reaffirmation, not an earnings release. For the September 2002 quarter, P&G expects double-digit total volume growth, high-single-digit volume growth excluding acquisitions and divestitures, high-single-digit sales growth excluding foreign exchange, and mid-teens growth in core EPS (excluding restructuring charges).
For fiscal 2003, management expects core EPS growth at its long-term target of double digits and sales growth of 4%a to 6% excluding foreign exchange. Management attributed the momentum to roughly 18 months of portfolio and brand interventions, innovation, marketing, and competitive pricing, while acknowledging a tough global economic environment. For investors, the key takeaway is that management is signaling confidence in near-term execution and reaffirming its long-term growth framework ahead of a major investor forum.
The filing is brief and offers no detail on risks, margins, or cash flow, so investors should treat the reaffirmation as management's forward-looking view rather than verified results. The filing also notes that the reported quarter-level volume figure includes acquisition and divestiture effects, so the organic figure is the more comparable metric.
02—Key points
Key Highlights
- Reaffirmed guidance: P&G said it is comfortable with previously stated volume, sales, and EPS growth targets for the September 2002 quarter and fiscal year 2003.
- September 2002 quarter volume growth expected in double digits, or high-single-digit excluding acquisitions and divestitures.
- September 2002 quarter sales growth (excluding FX) expected in the high-single-digit range.
- Core EPS (excluding restructuring charges) for the September 2002 quarter expected to grow in the mid-teens range.
- Fiscal 2003 core EPS expected to grow at the company's double-digit long-term growth target; sales (excluding FX) expected to grow 4% to 6%.
- Disclosure made under Regulation FD ahead of CFO Clayt Daley's October 2, 2002 Merrill Lynch conference presentation, with a live webcast.
- Filing contains no new financial statements or detailed risk disclosures; it is a guidance update only.
03—Questions
Frequently Asked Questions
Did P&G report new financial results in this filing?
No. The filing is a guidance reaffirmation under Regulation FD. It restates growth expectations for the September 2002 quarter and fiscal 2003 but does not report actual results for the period.
What is the difference between core EPS and reported EPS here?
Core EPS excludes restructuring program charges. P&G expects core EPS for the September 2002 quarter to grow in the mid-teens range, a figure that does not include the effect of those charges.
Why is the organic volume growth figure important?
Reported volume growth includes acquisitions and divestitures, which can distort comparisons. Excluding them, P&G expects high-single-digit volume growth, a cleaner read on underlying demand for its existing brands.
What does 'excluding foreign exchange' mean for the sales guidance?
It means the sales growth projections remove the effect of currency movements, so the figures reflect underlying business performance. Currency shifts can add or subtract from reported sales in dollar terms.
What is the fiscal 2003 outlook?
P&G expects core EPS growth at its long-term double-digit target and sales growth of 4% to 6% excluding foreign exchange. These are management's forward-looking expectations and are not guaranteed.
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