Procter & Gamble's CEO is taking Corporate America's case for a lower tax rate to U.S. lawmakers today, also calling for an end to taxation of foreign-earned profits.
Multinational companies say the top 35 percent corporate tax rate hamstrings them competitively against foreign-based rivals, most of whom are subject to far lower rates.
The Associated Press reported that Procter & Gamble Co. has recalled two versions of Pringles chips because of concerns about potential Salmonella exposure. Procter & Gamble Co. said the Cheeseburger and Taco Night versions of the snack are being recalled. The Company is offering replacement coupons or refunds. Procter & Gamble Co. says the two varieties represent only one-half of 1% of Pringles U.S volume and the recalled versions are only sold in the U.S. The Company says there have been no reports of illnesses.
This should be just a minor blip on the radar screen for P&G.
Procter & Gamble plans to expand its Art of Shaving retail chain to as many as 140 locations in the United States, up from fewer than 40 today.
The pricey shaving chain, founded in New York in 1996, was acquired by P&G in June to extend the reach of its Gillette shaving brand. The strategy is unlikely to create conflict with traditional retail customers because the Art of Shaving targets a different demographic. Prices of its razor handles, for example, can be as much as $500. Its Web site is offering a sterling silver shaving set for $1,700, reduced from $3,400.
Procter & Gamble has introduced its Ariel brand detergent powder in certain markets in the Southwest, targeting immigrants from Latin America.
Ariel USA is sold alongside other P&G detergents such as Tide, Cheer and Gain. But unlike those U.S. brands, Ariel is packaged in bags rather than in boxes. Mexicans are used to buying detergent in bags, a P&G spokeswoman said.
P&G will buy Sara Lee's Ambi Pur air freshener brand for $470 million. Ambi Pur's air freshener products have a global reach of 80 countries. The company also has several toilet-care products with a strong hold in Western Europe and Asia.
"The acquisition of Ambi Pur strengthens P&G's global leadership in home care, and specifically air care, by extending our reach to serve more consumers in more parts of the world more completely," said David Taylor, P&G group president of global home care. "This acquisition brings the strong Ambi Pur brand equity and complementary geographic presence, particularly in Europe and Asia."
Proctor & Gamble announced that A.J. Lafley will step down as chairman effective Jan 1, to be replaced by his CEO successor, Bob McDonald. McDonald took over as CEO in July. Lafley, who took over amid profit warnings and diving stock prices in June 2000, helped right P&G by emphasizing innovation and a "consumer is boss" focus, which included spending more time in personal observation and interviews with consumers.
McDonald took over with P&G sales struggling in the recession, but the company turned in better-than-expected first-quarter results in October and forecast a better outlook for the full year. McDonald has pledged to aggressively win back market share from lower-priced competitors and store brands; P&G has cut prices across its broad portfolio, stepped up advertising focused on offering value, and added both cheap versions of its products and new premium-priced items.
Procter & Gamble today said its profits were off 1 percent at $3.35 billion, or 1.06 per share, compared to $3.31 billion, or $1.03 per share, a year ago. Sales fell 6 percent to 19.8 billion.
Earnings topped the company's guidance.
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