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PROCTER & GAMBLE Co 8-K Report (Oct 14, 2003)

Reports
Other Events
Filing Date
Filed October 14, 2003
Period End
October 14, 2003
Security
PG
In the record · 2016–202610-K1210-Q328-K226

PG filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 226 current reports (8-K) between 2016 and 2026.

  1. FY2019 annual report10-K · Aug ’19Aug ’19
  2. Leadership change8-K · Jan ’22Jan ’22
  3. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed October 14, 2003. Cited figures are marked; the original filing is the authoritative source.

Procter & Gamble's October 14, 2003 Form 8-K furnishes (under Regulation FD) a news release summarizing Chairman, President and CEO A.G.

Lafley's address to shareholders at the company's annual meeting. Lafley characterized fiscal 2003 (year ended June 2003) as one of the better years in P&G history, reporting sales up 8%a, volume up 8%, and reported net earnings and diluted EPS each up 19%. Excluding restructuring charges, core net earnings rose 13% and core diluted EPS rose 14%.

Reported diluted EPS was $3.69b versus $3.09 the prior year, with $538 million of restructuring charges in fiscal 2003 (net earnings of $5.19 billion, core net earnings of $5.72 billion, core diluted EPS of $4.08). Management highlighted free cash flow of roughly $17 billion cumulatively since fiscal 2000 and $7.2 billion for fiscal 2003, up from $6.1 billion in fiscal 2002. Management emphasized that all of 2002/03 growth was organic, that brand share gains now span categories representing nearly 90% of sales (versus under 40% in fiscal 2000), and that P&G now has 13 billion-dollar brands, up from ten three years earlier.

Lafley reiterated that acquisitions such as Wella and Clairol remain part of the strategy but that long-term growth should come mainly from core businesses. He also cited the "connect and develop" open-innovation strategy, with a stated aspiration that 50%c of discovery and invention could come from outside the company, and a P&G annualized total shareholder return of nearly 17% over 20 years.

The release also declared a quarterly dividend of $0.455d per share, payable on or after November 14, 2003 to holders of record on October 24, 2003. The filing is largely promotional and forward-looking in tone; investors should note that the "core" metrics are non-GAAP measures excluding restructuring charges, and that the release flags risks including competition, acquisition integration, currency, commodity costs, and the potential divestiture of the juice business.

02—Key points

Key Highlights

  1. Fiscal 2003 sales and volume each rose 8%; reported net earnings and diluted EPS each rose 19%
  2. Core diluted EPS (excluding restructuring charges) rose 14% to $4.08; core net earnings rose 13% to $5.72 billion
  3. Reported diluted EPS of $3.69 included $538 million in restructuring charges, which the program substantially completed at fiscal year-end 2003
  4. Free cash flow reached $7.2 billion in FY2003 (up from $6.1 billion in FY2002), with nearly $17 billion generated since fiscal 2000
  5. Share gains in categories representing nearly 90% of sales in the last six months of FY2003, versus under 40% in fiscal 2000; 100% of growth was organic
  6. Quarterly dividend of $0.455 per share declared, payable on or after November 14, 2003 to holders of record October 24, 2003
  7. P&G now has 13 billion-dollar brands, up from ten three years earlier, with Crest, Iams and Olay newly joining the group

03—Questions

Frequently Asked Questions

  1. What did P&G report for fiscal 2003 results?

    P&G reported sales and volume each up 8%, and net earnings and diluted EPS each up 19%. Reported diluted EPS was $3.69 and net earnings were $5.19 billion, including $538 million in restructuring charges.

  2. What are 'core' earnings and why does P&G use them?

    Core earnings exclude restructuring charges. P&G says this gives investors additional perspective on underlying business trends. Core net earnings were $5.72 billion and core diluted EPS was $4.08 for fiscal 2003, up 13% and 14% respectively. These are non-GAAP measures, and the company directs investors to its website for a reconciliation to reported figures.

  3. What is the dividend and when is it payable?

    Directors declared a quarterly dividend of $0.455 per share on common stock and Series A ESOP convertible preferred stock. It is payable on or after November 14, 2003 to shareholders of record at the close of business on October 24, 2003.

  4. Is P&G's growth coming from acquisitions or core businesses?

    According to management, all of the 2002/03 growth was organic, coming from core established businesses. Management said acquisitions such as Wella and Clairol will continue to be pursued when they fit the strategy, but sustained growth should come mainly from core brands over the long term.

  5. What risks does the filing identify?

    The release's forward-looking statements cite risks including competition in key categories and markets, successful integration of acquisitions such as Wella, completion of planned divestitures such as the potential sale of the juice business, customer relationships, supply sources, regulatory and legal matters including product liability, cost-improvement execution, currency and commodity exposures, global political and economic uncertainty, and raw material price increases.

04—Continue

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