P&G Predicts Strong Earnings Growth; Buys More Wella Stock

09 June 2003

Procter & Gamble, the planet’s largest advertiser, is confident earnings for its fiscal fourth quarter will come in at the high end of expectations.

It believes earnings in the three months to June 30 will grow 12% year-on-year, at the top of the 10% to 12% range it predicted earlier. Sales are due to rise 4%–5%, while volume of products shipped is on course to grow 4%–6%.

• Separately, the US mammoth revealed it has accumulated more shares in German haircare group Wella.

P&G already has control of Wella after buying a 50.7% equity stake from the Ströher family (which brought with it 77.6% voting rights). However, under German law the group must make an offer for the remaining shares. Also, it would need a 95% stake to fulfil its plan to delist the company.

P&G’s offer for the outstanding equity has been controversial: holders of preference stock are upset that the €65 ($77; £46) per share on the table is so far below the €92.25 being offered for voting shares.

Last month P&G had managed to gain only an extra 2.26% from this offer [WAMN: 28-May-03]. Now it has gained 6.41% of preference stock and 11.43% of voting shares on top of its Ströher purchase. The offer closes on June 20.

Data sourced from: USA Today; additional content by WARC staff