P&G Plans More Price Cuts In 2013, Defends Savings Plan
This article was originally published in The Pink Sheet Daily
Procter & Gamble will slash prices on some products in the short term to halt U.S. market share erosion in categories where competitors did not previously raise prices. On the firm’s Q4 earnings call, executives defended their bullish growth and savings projections.
You may also be interested in...
Changes may be ahead for Procter & Gamble following William Ackman and Pershing Square Capital Management’s investment in the Cincinnati-based consumer-goods giant. Analysts suggest the activist investor may push to replace CEO Bob McDonald and divest non-core brands.
The firm makes “necessary adjustments” to achieve more balanced growth across its markets and product categories, CEO Bob McDonald says. But Wall Street may not be reassured, as analysts are frustrated with P&G for not better defending against macroeconomic challenges and fixing internal structural issues.
Procter & Gamble expects an across-the-board price increase of at least 3%, spurred by higher commodity costs, will prompt its competitors to raise product prices as well.