P & G Predicts Fall Sales Recovery
September 10, 2009 by Mark Ellis
Filed under Business
Procter & Gamble has experienced a general decline in sales since the onset of the recession as consumer spending falls along with sagging wages and rising unemployment. However, the household goods giant has stated that it expects its sales to recover throughout the fall as the company lowers prices and introduces more value brands.
After P&G released its predictions, its shares rose 4.2 percent, or $2.28, landing at $56.04. The company has told investors that it expects its prescription drug business to bring in 32 to 34 cents per share in profits this fiscal year, as well as a 1 to 4 percent organic sales growth in the quarter ending in December.
The company plans to cut prices on about 10 percent of its products globally as well as undertaking marketing efforts to pitch many of its products as “value” options. P&G executives have confirmed that the company is not banking on quick market recovery, instead hoping that its price cuts and marketing adjustments will do the trick.
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