What, Me Worry? Lafley Reassures P&G Investors

2008-10-14 | 12:19

Procter has the products to succeed in difficult times

Despite turmoil in financial markets and a descent toward recession, Procter & Gamble chairman A.G. Lafley told shareholders that the company has the products and infrastructure to weather a difficult economic climate.

Speaking today at the company's annual meeting, Mr. Lafley noted, "While the economic environment remains volatile and uncertain, I am confident that P&G can and will continue to prosper over the long term. We are committed to ensuring P&G will continue to be a company you can count on."

Mr. Lafley stressed that P&G is saving money even while it spends more than $2 billion per year on innovation, taking cost-reduction steps such as virtual product testing.

He highlighted how products are being promoted to cash-strapped consumers around the world. New U.S. commercials for the men's Fusion razor emphasize that it only costs about $1 per week to use. In the Philippines, the company targets women who wash clothes by hand with advertisements, showing that P&G's Downy can save time since it only needs to be rinsed once, rather than three times as is often done.

Mr. Lafley also reminded investors that P&G has paid dividends for 118 years, with increases in the last 52 years. The company is set to pay $5 billion in dividends in the current fiscal year, which ends in June, and plans to repurchase $8 billion to $10 billion of its shares this year.