P&G Names eBay Chief to Board, Raises Second Quarter Outlook

Procter & Gamble Co. named eBay Inc. president and chief executive officer Margaret C. Whitman to its board, effective Jan. 1. Ms. Whitman is filling a vacancy created by Donald Beall’s retirement in October, restoring board membership to 18 directors.

Before joining eBay, Ms. Whitman held positions at Hasbro Inc., FTD Inc., Stride Rite Corp. and Walt Disney Co. Surprisingly, her first job was as a P&G marketing brand assistant.

“Whitman has built one of the most profitable e-commerce businesses in the world,” P&G chairman, president and chief executive officer A.G. Lafley said in a prepared statement. “Her understanding of consumers, branding and the Internet make her a tremendous addition to P&G’s board.”

P&G also promoted Filippo Passerini global business services officer effective Jan. 1. He will replace Mike Power, 55 years old, who is retiring March 31 after more than 31 years of service. Mr. Passerini, 45 years old, is currently vice president, business process sourcing study transition leader.

In other news, P&G stated that it is raising its estimated earnings per share growth for the December 2002 quarter behind higher operating margin growth versus previous guidance. Volume is expected to grow in the high single digits behind strong performance by the health care business unit and continued strength in developing markets. The net impact of acquisitions and divestitures is expected to contribute less than 1% to volume growth during the quarter.

Sales are expected to finish the quarter in the mid- to high-single digit range versus year ago. Currently, foreign exchange is expected to have no impact on the top line. Core earnings per share, which exclude restructuring charges, are expected to grow in the high single digit range and above current consensus estimates. Earnings in the base period include a one-time gain from the divestiture of Comet.

The company is also comfortable with existing consensus estimates for the January to June 2003 period. For the fiscal year, the company expects to achieve its long-term growth rates. Sales, excluding foreign exchange impacts, are expected to grow four to 6%.