P&G results raise concerns about pace of turnaround
By Yashaswini Swamynathan
(Reuters) - Procter & Gamble Co (PG.N: Quote) reported its sixth straight quarter of falling sales, hurt mainly by the stronger dollar.
Even after stripping out the impact of the dollar and acquisitions, sales rose just 1 percent, raising concerns about the slow pace at which P&G is turning around its business.
The company's shares fell as much as 4.3 percent in morning trading on Thursday, after it said sales would fall by a low-to-mid single-digit percentage in the year ending June 2016.
P&G, struggling in an increasingly competitive consumer products industry, has been trying to turn itself around since 2014 by focusing on fewer, faster-growing brands.
It has also made management changes, including appointing company veteran David Taylor CEO this week.
But these moves have failed to convince investors that the company, which gets two-thirds of its revenue from outside the United States, has done enough to get back on track.
JP Morgan analysts noted that P&G's volume sales were the weakest in five years.
Some analysts question whether P&G is too big and whether it would be better off splitting its businesses into separate companies. Continued...