The document is P&G's 2000 annual report which summarizes the company's financial and operating performance for the fiscal year.
1) Net sales grew 5% to $39.9 billion while net earnings fell 6% to $3.5 billion due to higher costs from organizational changes and new investments. Core earnings excluding restructuring costs grew 2% to a record $4.2 billion.
2) The CEO acknowledges the year's challenges but expresses confidence that by focusing on big brands, innovation, customer partnerships, and cost control, P&G can restore balanced growth in sales and profits.
3) Looking forward, the new organizational structure aims to leverage P&G's strengths in understanding consumer needs
This annual report summarizes Procter & Gamble's (P&G's) financial performance and strategic goals for 2001. Net sales declined slightly but core earnings grew. P&G aims to focus on core brands and businesses, improve performance in key markets like the US and Western Europe, and drive growth through innovation. The report highlights how P&G employees and brands help improve people's lives through stories like a dog saved by a specialized diet and a woman who used Olay for decades.
USG Corporation had a very successful year in 1999. Net sales increased 15% to $3.6 billion, operating profit rose 25% to $730 million, net earnings increased 27% to $421 million, and diluted earnings per share were $8.39 compared to $6.61 in 1998. To continue this growth, USG is investing in new state-of-the-art manufacturing facilities to increase production capacity and replace older, higher-cost plants. They are also focusing on innovation, expanding distribution through L&W Supply, strengthening customer relationships, and building their brands.
General Mills' annual report for fiscal year 2008 highlights continued sales growth. Net sales increased 10% to $13.7 billion, with growth across all major divisions. International sales grew 21% and now make up 19% of total sales. Diluted earnings per share grew 17% to $3.71, meeting the company's long-term growth targets. General Mills attributes its success to building strong brands globally, developing new products, increasing marketing investment, partnering effectively with retailers, and focusing on cost savings to protect margins despite rising input costs.
allstateFinancial Highlights, Shareholder Letter and Our Customer Family 1998finance7
- Cay Chavez Jr. is a new 17-year-old driver who purchased an '85 Cougar that he is restoring.
- He has an auto policy through Allstate to cover the costs of driving and maintaining the vehicle.
- Allstate agents provide educational materials and safety programs to help new teen drivers drive responsibly.
This document is Omnicom's annual report for the year 2000. It summarizes Omnicom's financial and operating highlights for 2000, with revenue reaching $6.2 billion, a 20% increase from 1999. It also discusses the performance of Omnicom's major advertising and marketing agency brands such as BBDO Worldwide, DDB Worldwide, and TBWA Worldwide. The report provides an overview of the company's financial results and growth in revenue, income, and earnings per share for 2000.
The document is Southern Company's 2003 annual report. It summarizes the company's strong financial and operational performance in 2003, with earnings of $1.47 billion, or $2.03 per share. It discusses the company's focus on its core businesses of power generation and delivery in the Southeast US. The report also announces that Chairman and CEO Allen Franklin will retire in July 2004, and that David Ratcliffe will succeed him as president in April and CEO in July. Ratcliffe expresses confidence in Southern Company's strategy and people to continue its record of success.
The document is the 2002 annual report for FedEx. It highlights that in fiscal year 2002:
- Revenues increased 5% to a record $20.6 billion.
- Net income increased 22% to a record $710 million.
- Diluted earnings per share increased 18% to a record $2.34.
The report discusses how FedEx executed well despite a sluggish economy by containing costs, matching resources to demand, and capitalizing on opportunities through its diversified business units. It expresses confidence that ongoing efforts to improve productivity and focus on customers will help increase performance as the economy recovers.
Kohl's Corporation reported on its strong financial performance in fiscal year 2000. Net sales increased 35% to $6.2 billion and net income rose 44% to $372 million. Kohl's opened 61 new stores in 2000, bringing the total to 320 stores across 28 states. The company plans to continue its aggressive nationwide expansion strategy, with plans to open approximately 60 additional stores in 2001. Kohl's also aims to become a national retailer by entering new regions across the country over the next three years, including major markets like Los Angeles and Boston.
This annual report summarizes Procter & Gamble's (P&G's) financial performance and strategic goals for 2001. Net sales declined slightly but core earnings grew. P&G aims to focus on core brands and businesses, improve performance in key markets like the US and Western Europe, and drive growth through innovation. The report highlights how P&G employees and brands help improve people's lives through stories like a dog saved by a specialized diet and a woman who used Olay for decades.
USG Corporation had a very successful year in 1999. Net sales increased 15% to $3.6 billion, operating profit rose 25% to $730 million, net earnings increased 27% to $421 million, and diluted earnings per share were $8.39 compared to $6.61 in 1998. To continue this growth, USG is investing in new state-of-the-art manufacturing facilities to increase production capacity and replace older, higher-cost plants. They are also focusing on innovation, expanding distribution through L&W Supply, strengthening customer relationships, and building their brands.
General Mills' annual report for fiscal year 2008 highlights continued sales growth. Net sales increased 10% to $13.7 billion, with growth across all major divisions. International sales grew 21% and now make up 19% of total sales. Diluted earnings per share grew 17% to $3.71, meeting the company's long-term growth targets. General Mills attributes its success to building strong brands globally, developing new products, increasing marketing investment, partnering effectively with retailers, and focusing on cost savings to protect margins despite rising input costs.
allstateFinancial Highlights, Shareholder Letter and Our Customer Family 1998finance7
- Cay Chavez Jr. is a new 17-year-old driver who purchased an '85 Cougar that he is restoring.
- He has an auto policy through Allstate to cover the costs of driving and maintaining the vehicle.
- Allstate agents provide educational materials and safety programs to help new teen drivers drive responsibly.
This document is Omnicom's annual report for the year 2000. It summarizes Omnicom's financial and operating highlights for 2000, with revenue reaching $6.2 billion, a 20% increase from 1999. It also discusses the performance of Omnicom's major advertising and marketing agency brands such as BBDO Worldwide, DDB Worldwide, and TBWA Worldwide. The report provides an overview of the company's financial results and growth in revenue, income, and earnings per share for 2000.
The document is Southern Company's 2003 annual report. It summarizes the company's strong financial and operational performance in 2003, with earnings of $1.47 billion, or $2.03 per share. It discusses the company's focus on its core businesses of power generation and delivery in the Southeast US. The report also announces that Chairman and CEO Allen Franklin will retire in July 2004, and that David Ratcliffe will succeed him as president in April and CEO in July. Ratcliffe expresses confidence in Southern Company's strategy and people to continue its record of success.
The document is the 2002 annual report for FedEx. It highlights that in fiscal year 2002:
- Revenues increased 5% to a record $20.6 billion.
- Net income increased 22% to a record $710 million.
- Diluted earnings per share increased 18% to a record $2.34.
The report discusses how FedEx executed well despite a sluggish economy by containing costs, matching resources to demand, and capitalizing on opportunities through its diversified business units. It expresses confidence that ongoing efforts to improve productivity and focus on customers will help increase performance as the economy recovers.
Kohl's Corporation reported on its strong financial performance in fiscal year 2000. Net sales increased 35% to $6.2 billion and net income rose 44% to $372 million. Kohl's opened 61 new stores in 2000, bringing the total to 320 stores across 28 states. The company plans to continue its aggressive nationwide expansion strategy, with plans to open approximately 60 additional stores in 2001. Kohl's also aims to become a national retailer by entering new regions across the country over the next three years, including major markets like Los Angeles and Boston.
The Progressive Corporation reported financial results for September 2004 and year-to-date. For September, net income increased 28% to $120.5 million compared to the same period last year. Net premiums earned grew 11% to $1.013 billion. The combined ratio was 88.1. For the year-to-date period, net income increased 38% to $1.235 billion, while net premiums earned grew 16% to $9.605 billion. The company also reported total investment returns and provided additional details on expenses and earnings per share.
This annual report summarizes Caterpillar's performance in 2002, a challenging year with declining markets and a stalled global economy. Despite weak industry conditions, Caterpillar achieved strong profits through cost cutting measures. The report highlights how Caterpillar has diversified its business beyond construction machinery through expanded offerings in engine, financing, and logistics services to make the company less vulnerable to economic cycles. It expresses confidence that Caterpillar is well-positioned for future growth when economies rebound given its focus on technology, quality products, and global dealer network.
This document provides a summary of Procter & Gamble's (P&G's) 2003 annual report. It discusses P&G's strong financial performance in fiscal year 2003, with 8% sales growth, 19% earnings growth, and market share gains across most major brands. It highlights the completion of P&G's restructuring program ahead of schedule. The summary also outlines P&G's strategic focus on growing existing core businesses, leading customers, large countries, and health/beauty categories. It emphasizes P&G's continued focus on productivity, cost reduction, cash management, and leveraging its strengths in branding, innovation, and global scale.
The 2000 Whirlpool Corporation Annual Report summarizes the company's financial performance and operations for the year. Key points include:
- Net sales were $10.3 billion, down 1.8% from 1999, with core earnings per share down 3% to $5.20.
- The company faced challenging market conditions in North America and Europe in the second half of 2000.
- Whirlpool has a unique global structure and is the world's leading home appliance manufacturer.
- The company focuses on innovation, brand building, and creating value for customers and shareholders.
- Restructuring actions announced in late 2000 are expected to generate $225-250 million in annual cost savings.
The document is FedEx Corporation's 2000 Annual Report. It summarizes that in FY2000, FedEx saw a 9% increase in revenue to $18.3 billion and a 9% increase in net income to $688 million. Earnings per share grew 10% to $2.32. It also outlines FedEx's new strategic plan called "Project ARISE" to strengthen the FedEx brand and provide more integrated services and solutions for customers. The plan aims to drive revenue and profit growth through cross-selling services, expanding international business, leveraging e-commerce, and providing supply chain solutions.
- Tricon Global Restaurants owns KFC, Pizza Hut, and Taco Bell restaurant chains. In 2001, the company saw increases in ongoing operating profit, net income, and earnings per share compared to 2000, though total revenues declined slightly.
- The company aims to improve customer satisfaction ratings by focusing on running great restaurants and improving the customer experience, which it recognizes is an area that needs significant improvement. It plans to train employees to have a "Customer Mania" mindset with the goal of becoming the best in the industry for customer service.
Schering-Plough is a global pharmaceutical company focused on research and developing new therapies. In 2000, the company achieved 8% sales growth to $9.8 billion, led by its pharmaceutical business. Key therapeutic areas include allergy/respiratory, where sales grew 9% to $4.2 billion, driven by the antihistamine Claritin. The company is working to expand its allergy franchise with new products like Clarinex and strengthen its position in other areas like cancer and inflammation. Research and marketing efforts aim to continue delivering new treatments and driving international expansion.
This document is Gannett Co., Inc.'s 2005 annual report. It includes the company's financial summary for 2005, a letter to shareholders from the chairman and CEO, and information about the company's operations. The letter discusses leadership changes at Gannett in 2005, the company's financial performance for the year which saw increased revenues and operating cash flow despite challenges, and strategic acquisitions and investments made to expand Gannett's digital offerings and ability to reach audiences across multiple platforms.
The annual report summarizes Corning's financial performance in 2002, a challenging year due to the downturn in the telecommunications industry. Corning reported a net loss of $1.3 billion on sales of $3.2 billion, down significantly from 2001. In response, Corning restructured operations, cutting costs and jobs to preserve its financial position. It aims to return to profitability in 2003 by focusing on growing its display glass, environmental, and semiconductor businesses within Corning Technologies. While telecommunications remains weak, Corning maintains its leadership in optical fiber and intends to benefit when the market rebounds.
This document is the annual report for Omnicom from 2001. It summarizes the company's financial performance for 2001 and compares it to previous years. Some key points:
- Revenue reached $6.89 billion in 2001, a record high, though growth slowed due to economic challenges including the recession and 9/11 attacks.
- Operating income was $968 million and net income was $503 million in 2001. Earnings per share were $2.75 excluding a one-time gain.
- The company achieved all of its financial goals for 2001 except improving operating margins, due to a slowdown in client spending in many industries.
- Omnicom won a record $4.
Omnicom reported its annual financial results for 2004. Key highlights include:
- Revenues increased 13% to a record $9.7 billion from $8.6 billion in 2003. Net income grew 15% to $723.5 million.
- All of Omnicom's marketing services disciplines (media, CRM, specialty communications, PR) contributed to revenue growth.
- Omnicom successfully completed its certification under the Sarbanes-Oxley Act, a significant and costly undertaking.
- The company intends to continue investing in its business and people to drive future growth, including potential acquisitions.
This document is the 2007 annual report of W. R. Berkley Corporation, a commercial property and casualty insurance provider. The report summarizes the company's strong financial performance in 2007, with total revenues increasing 3% to $5.6 billion, net income reaching a new high of $3.78 per share and return on equity exceeding 22%. It provides an overview of the company's five business segments and decentralized operating structure. The report also highlights Berkley's long-term strategies of accountability, developing talent internally, proactively managing risk exposures, and maintaining a strong balance sheet.
Gafisa is one of Brazil's largest homebuilders, with a national footprint and a diverse land bank. In 2009, Gafisa saw increases in launches, pre-sales, revenues and EBITDA compared to 2008. For 2010, Gafisa aims to launch between R$4-5 billion in projects, with 40-45% dedicated to affordable housing through Tenda, and expects an EBITDA margin between 18.5-20.5%. Gafisa also completed the acquisition of the remaining shares of Tenda, diversified its brands and geographies, and secured R$600 million in new financing.
The document discusses Gannett's strategic plan and progress in 2006 toward transforming the company to embrace changes in consumer demand and technology. Key points:
- Gannett formed Gannett Digital to grow its digital business and capture a share of the growing online advertising market.
- Gannett made acquisitions and partnerships to enhance its capabilities in areas like local search, mobile, video and rich media advertising.
- The strategic plan focused on innovation, transforming newsrooms into information centers, and developing leadership. Significant progress was made in 2006 on these initiatives.
- Financial results for 2006 were strong, with operating revenues reaching a record $8.03 billion, though operating income declined slightly.
This document is Textron's 2001 Annual Report which discusses the company's performance in 2001 and outlines its strategic plans and goals for the future. Some key points:
1) 2001 was a challenging year for Textron due to economic recession and operational issues, but the company took strategic steps to transform itself into a networked enterprise of strong businesses and brands.
2) Textron implemented restructuring, reconfiguring, reengineering, and increased its focus on return on invested capital to improve performance and position the company for long-term growth.
3) Going forward, Textron aims to strengthen its business mix, leverage its enterprise resources, and implement Six Sigma to drive efficiency and enhance customer satisfaction.
This document summarizes the financial performance of Burlington Northern Santa Fe Corporation for the years 1992-1996. It reports that in 1996:
- Operating income increased 14% to $1.75 billion compared to 1995 on a comparable basis.
- Revenues reached $8.19 billion despite a drop in agricultural commodities revenues.
- Operating expenses were $178 million below 1995 levels, lowering the operating ratio to 78.6%.
- Net income grew 21% to $889 million, or $5.70 per share, compared to $733 million in 1995.
Burlington Northern Santa Fe Corporation's 2000 Annual Report summarizes the company's performance for the year. Key points include:
- Revenues grew to $9.2 billion while operating expenses only increased 1% despite a $230 million rise in fuel costs.
- Intermodal revenues increased 6% to a record level while safety and efficiency improvements were made.
- However, weak coal demand, high fuel prices, and a slow US economy impacted results for the year.
- Over the past five years since the Burlington Northern and Santa Fe merger, significant progress has been made in safety, service, efficiency and financials.
P&G is celebrating its 165th year of providing trusted brands to consumers around the world. In 2002, P&G marketed nearly 300 brands in over 160 countries. Key financial highlights included a 3% increase in net sales to $40.2 billion and a 49% increase in net earnings to $4.352 billion. Core earnings per share grew 10% as the company delivered broad sales growth across all business units and regions.
P&G's annual report discusses embracing the future through increased innovation and organization vitality. It summarizes the company's fiscal year results, noting earnings growth despite economic challenges. It outlines changes through the Organization 2005 initiative to accelerate growth by restructuring and improving innovation processes. The report emphasizes connecting technologies across business units and unleashing innovation to capitalize on a faster-paced global marketplace.
Masco Corporation's 2001 annual report summarizes the company's financial results and business operations for the year. Key points include:
- Net sales reached a record $8.3 billion, up 15% from 2000, though net income declined to $199 million due to a $344 million non-cash investment write-down. Excluding special items, net income declined 21% to $543 million.
- The company achieved record operating profit exceeding $1 billion despite economic challenges. Capital expenditures totaled $274 million.
- Sales growth was driven by acquisitions expanding the cabinets/related products and installation/services segments, though plumbing product sales declined 5%.
- Most of Masco's
Eaton Corporation's 2001 annual report outlines the company's performance in a difficult year, with declining markets and a weakening global economy impacted further by the events of September 11th. Despite challenges, Eaton was able to outgrow its end markets, resize operations to compete at lower activity levels, strengthen its balance sheet by repaying over $560 million in debt, and end the year with a 16.9% stock return. The report emphasizes how Eaton has transformed its business model and integrated operations to better position the company for future growth opportunities.
Eaton Corporation is a global $7.3 billion diversified industrial manufacturer focused on fluid power systems, electrical power distribution and control, automotive engine air management, and intelligent truck systems. In 2001, Eaton faced challenges from a weak global economy and declining end markets, but took actions to resize operations, repay debt, and position itself for future growth when markets recover. The annual report discusses Eaton's financial performance in 2001, leadership response to challenges, and strategies for integrating operations to leverage its scale and diversity.
The Progressive Corporation reported financial results for September 2004 and year-to-date. For September, net income increased 28% to $120.5 million compared to the same period last year. Net premiums earned grew 11% to $1.013 billion. The combined ratio was 88.1. For the year-to-date period, net income increased 38% to $1.235 billion, while net premiums earned grew 16% to $9.605 billion. The company also reported total investment returns and provided additional details on expenses and earnings per share.
This annual report summarizes Caterpillar's performance in 2002, a challenging year with declining markets and a stalled global economy. Despite weak industry conditions, Caterpillar achieved strong profits through cost cutting measures. The report highlights how Caterpillar has diversified its business beyond construction machinery through expanded offerings in engine, financing, and logistics services to make the company less vulnerable to economic cycles. It expresses confidence that Caterpillar is well-positioned for future growth when economies rebound given its focus on technology, quality products, and global dealer network.
This document provides a summary of Procter & Gamble's (P&G's) 2003 annual report. It discusses P&G's strong financial performance in fiscal year 2003, with 8% sales growth, 19% earnings growth, and market share gains across most major brands. It highlights the completion of P&G's restructuring program ahead of schedule. The summary also outlines P&G's strategic focus on growing existing core businesses, leading customers, large countries, and health/beauty categories. It emphasizes P&G's continued focus on productivity, cost reduction, cash management, and leveraging its strengths in branding, innovation, and global scale.
The 2000 Whirlpool Corporation Annual Report summarizes the company's financial performance and operations for the year. Key points include:
- Net sales were $10.3 billion, down 1.8% from 1999, with core earnings per share down 3% to $5.20.
- The company faced challenging market conditions in North America and Europe in the second half of 2000.
- Whirlpool has a unique global structure and is the world's leading home appliance manufacturer.
- The company focuses on innovation, brand building, and creating value for customers and shareholders.
- Restructuring actions announced in late 2000 are expected to generate $225-250 million in annual cost savings.
The document is FedEx Corporation's 2000 Annual Report. It summarizes that in FY2000, FedEx saw a 9% increase in revenue to $18.3 billion and a 9% increase in net income to $688 million. Earnings per share grew 10% to $2.32. It also outlines FedEx's new strategic plan called "Project ARISE" to strengthen the FedEx brand and provide more integrated services and solutions for customers. The plan aims to drive revenue and profit growth through cross-selling services, expanding international business, leveraging e-commerce, and providing supply chain solutions.
- Tricon Global Restaurants owns KFC, Pizza Hut, and Taco Bell restaurant chains. In 2001, the company saw increases in ongoing operating profit, net income, and earnings per share compared to 2000, though total revenues declined slightly.
- The company aims to improve customer satisfaction ratings by focusing on running great restaurants and improving the customer experience, which it recognizes is an area that needs significant improvement. It plans to train employees to have a "Customer Mania" mindset with the goal of becoming the best in the industry for customer service.
Schering-Plough is a global pharmaceutical company focused on research and developing new therapies. In 2000, the company achieved 8% sales growth to $9.8 billion, led by its pharmaceutical business. Key therapeutic areas include allergy/respiratory, where sales grew 9% to $4.2 billion, driven by the antihistamine Claritin. The company is working to expand its allergy franchise with new products like Clarinex and strengthen its position in other areas like cancer and inflammation. Research and marketing efforts aim to continue delivering new treatments and driving international expansion.
This document is Gannett Co., Inc.'s 2005 annual report. It includes the company's financial summary for 2005, a letter to shareholders from the chairman and CEO, and information about the company's operations. The letter discusses leadership changes at Gannett in 2005, the company's financial performance for the year which saw increased revenues and operating cash flow despite challenges, and strategic acquisitions and investments made to expand Gannett's digital offerings and ability to reach audiences across multiple platforms.
The annual report summarizes Corning's financial performance in 2002, a challenging year due to the downturn in the telecommunications industry. Corning reported a net loss of $1.3 billion on sales of $3.2 billion, down significantly from 2001. In response, Corning restructured operations, cutting costs and jobs to preserve its financial position. It aims to return to profitability in 2003 by focusing on growing its display glass, environmental, and semiconductor businesses within Corning Technologies. While telecommunications remains weak, Corning maintains its leadership in optical fiber and intends to benefit when the market rebounds.
This document is the annual report for Omnicom from 2001. It summarizes the company's financial performance for 2001 and compares it to previous years. Some key points:
- Revenue reached $6.89 billion in 2001, a record high, though growth slowed due to economic challenges including the recession and 9/11 attacks.
- Operating income was $968 million and net income was $503 million in 2001. Earnings per share were $2.75 excluding a one-time gain.
- The company achieved all of its financial goals for 2001 except improving operating margins, due to a slowdown in client spending in many industries.
- Omnicom won a record $4.
Omnicom reported its annual financial results for 2004. Key highlights include:
- Revenues increased 13% to a record $9.7 billion from $8.6 billion in 2003. Net income grew 15% to $723.5 million.
- All of Omnicom's marketing services disciplines (media, CRM, specialty communications, PR) contributed to revenue growth.
- Omnicom successfully completed its certification under the Sarbanes-Oxley Act, a significant and costly undertaking.
- The company intends to continue investing in its business and people to drive future growth, including potential acquisitions.
This document is the 2007 annual report of W. R. Berkley Corporation, a commercial property and casualty insurance provider. The report summarizes the company's strong financial performance in 2007, with total revenues increasing 3% to $5.6 billion, net income reaching a new high of $3.78 per share and return on equity exceeding 22%. It provides an overview of the company's five business segments and decentralized operating structure. The report also highlights Berkley's long-term strategies of accountability, developing talent internally, proactively managing risk exposures, and maintaining a strong balance sheet.
Gafisa is one of Brazil's largest homebuilders, with a national footprint and a diverse land bank. In 2009, Gafisa saw increases in launches, pre-sales, revenues and EBITDA compared to 2008. For 2010, Gafisa aims to launch between R$4-5 billion in projects, with 40-45% dedicated to affordable housing through Tenda, and expects an EBITDA margin between 18.5-20.5%. Gafisa also completed the acquisition of the remaining shares of Tenda, diversified its brands and geographies, and secured R$600 million in new financing.
The document discusses Gannett's strategic plan and progress in 2006 toward transforming the company to embrace changes in consumer demand and technology. Key points:
- Gannett formed Gannett Digital to grow its digital business and capture a share of the growing online advertising market.
- Gannett made acquisitions and partnerships to enhance its capabilities in areas like local search, mobile, video and rich media advertising.
- The strategic plan focused on innovation, transforming newsrooms into information centers, and developing leadership. Significant progress was made in 2006 on these initiatives.
- Financial results for 2006 were strong, with operating revenues reaching a record $8.03 billion, though operating income declined slightly.
This document is Textron's 2001 Annual Report which discusses the company's performance in 2001 and outlines its strategic plans and goals for the future. Some key points:
1) 2001 was a challenging year for Textron due to economic recession and operational issues, but the company took strategic steps to transform itself into a networked enterprise of strong businesses and brands.
2) Textron implemented restructuring, reconfiguring, reengineering, and increased its focus on return on invested capital to improve performance and position the company for long-term growth.
3) Going forward, Textron aims to strengthen its business mix, leverage its enterprise resources, and implement Six Sigma to drive efficiency and enhance customer satisfaction.
This document summarizes the financial performance of Burlington Northern Santa Fe Corporation for the years 1992-1996. It reports that in 1996:
- Operating income increased 14% to $1.75 billion compared to 1995 on a comparable basis.
- Revenues reached $8.19 billion despite a drop in agricultural commodities revenues.
- Operating expenses were $178 million below 1995 levels, lowering the operating ratio to 78.6%.
- Net income grew 21% to $889 million, or $5.70 per share, compared to $733 million in 1995.
Burlington Northern Santa Fe Corporation's 2000 Annual Report summarizes the company's performance for the year. Key points include:
- Revenues grew to $9.2 billion while operating expenses only increased 1% despite a $230 million rise in fuel costs.
- Intermodal revenues increased 6% to a record level while safety and efficiency improvements were made.
- However, weak coal demand, high fuel prices, and a slow US economy impacted results for the year.
- Over the past five years since the Burlington Northern and Santa Fe merger, significant progress has been made in safety, service, efficiency and financials.
P&G is celebrating its 165th year of providing trusted brands to consumers around the world. In 2002, P&G marketed nearly 300 brands in over 160 countries. Key financial highlights included a 3% increase in net sales to $40.2 billion and a 49% increase in net earnings to $4.352 billion. Core earnings per share grew 10% as the company delivered broad sales growth across all business units and regions.
P&G's annual report discusses embracing the future through increased innovation and organization vitality. It summarizes the company's fiscal year results, noting earnings growth despite economic challenges. It outlines changes through the Organization 2005 initiative to accelerate growth by restructuring and improving innovation processes. The report emphasizes connecting technologies across business units and unleashing innovation to capitalize on a faster-paced global marketplace.
Masco Corporation's 2001 annual report summarizes the company's financial results and business operations for the year. Key points include:
- Net sales reached a record $8.3 billion, up 15% from 2000, though net income declined to $199 million due to a $344 million non-cash investment write-down. Excluding special items, net income declined 21% to $543 million.
- The company achieved record operating profit exceeding $1 billion despite economic challenges. Capital expenditures totaled $274 million.
- Sales growth was driven by acquisitions expanding the cabinets/related products and installation/services segments, though plumbing product sales declined 5%.
- Most of Masco's
Eaton Corporation's 2001 annual report outlines the company's performance in a difficult year, with declining markets and a weakening global economy impacted further by the events of September 11th. Despite challenges, Eaton was able to outgrow its end markets, resize operations to compete at lower activity levels, strengthen its balance sheet by repaying over $560 million in debt, and end the year with a 16.9% stock return. The report emphasizes how Eaton has transformed its business model and integrated operations to better position the company for future growth opportunities.
Eaton Corporation is a global $7.3 billion diversified industrial manufacturer focused on fluid power systems, electrical power distribution and control, automotive engine air management, and intelligent truck systems. In 2001, Eaton faced challenges from a weak global economy and declining end markets, but took actions to resize operations, repay debt, and position itself for future growth when markets recover. The annual report discusses Eaton's financial performance in 2001, leadership response to challenges, and strategies for integrating operations to leverage its scale and diversity.
Ken Lewis, Chairman and CEO of Bank of America, presented at the 2006 Goldman Sachs Financial Services Conference. He discussed the company's opportunities for growth, highlighting its plans to achieve growth through selling more products to more customers across its national footprint, effectively managing costs, and capitalizing on opportunities in retail banking, wealth management, and commercial banking. Lewis also emphasized the company's ability to execute on its strategy through leveraging its extensive customer base and innovation capabilities.
VF Corporation reported financial results for 2000 that were mixed compared to 1999. Net sales reached a record $5.7 billion but operating income and net income declined from the previous year. Earnings per share were reduced by restructuring charges and a change in accounting policy. Throughout 2000, VF took actions to strengthen its brands and position the company for improved financial performance in 2001, including acquiring new brands, exiting unprofitable businesses, consolidating operations, and continuing its share repurchase program.
Satellite TV dishes on tens of millions of homes and seamless global telephone service are some developing markets driving a $70 billion satellite and wireless industry. Hughes is uniquely positioned to take advantage of opportunities in this industry due to its leadership in satellite and wireless systems, proven record of innovation, strong finances, and highly skilled workforce.
This document is the annual report for Omnicom from 2001. It provides an overview of the company's financial performance for 2001 compared to previous years, as well as highlights from each of its major advertising agency networks - BBDO Worldwide, DDB Worldwide, and TBWA Worldwide. The report discusses how each agency network expanded its client roster and won various industry awards in 2001 despite challenges from economic slowdown. It also notes some leadership changes that occurred within the company.
- The Progressive Corporation reported financial results for February 2005, with net premiums written up 12% and net income down 12% compared to February 2004.
- Personal lines policies in force grew 12% year over year while commercial auto policies in force rose 14%.
- The combined ratio was 85.2% for February 2005, an increase of 1.5 percentage points from February 2004, driven partly by lower favorable reserve development on prior accident years.
The Progressive Corporation reported financial results for February 2005, with net premiums written up 12% and net income down 12% compared to February 2004. Progressive saw growth in both its Personal and Commercial Auto business lines. The combined ratio was 85.2%, an increase of 1.5 percentage points from the prior year. Policies in force increased 12% overall, with growth across all business segments.
The Progressive Corporation reported its results for May 2005. Net premiums written increased 2% compared to May 2004. Net income increased 16% to $126.1 million, while earnings per share increased 27% to $0.63. The combined ratio improved 0.8 percentage points to 85.8%. Personal lines policies in force grew 11% year-over-year.
The Progressive Corporation reported its results for May 2005. Net premiums written increased 2% compared to May 2004. Net income increased 16% to $126.1 million, while earnings per share increased 27% to $0.63. The combined ratio improved 0.8 percentage points to 85.8%. Personal lines policies in force grew 11% year-over-year.
Dover's annual report outlines its consistent business philosophy of achieving and maintaining market leadership in every market it serves. The report discusses Dover's goals of perceiving customers' needs, providing better products/services than competitors, investing to maintain competitive advantages, and expecting a fair price. It emphasizes focusing on quality, innovation, service, and long-term orientation. Dover enhances leadership through acquisitions that strengthen existing markets or offer new ones. Intrinsic to Dover's success is decentralized management that gives autonomy to company presidents.
The document is Sempra Energy's 1999 annual report. It summarizes the company's strong financial performance in 1999, exceeding earnings growth targets. However, total shareholder return did not increase. As a result, Sempra Energy is undertaking a strategic realignment to become a leading global energy services company focused on meeting changing customer needs. Key steps include investments in growing domestic and international businesses and a reduced dividend to increase financial flexibility for growth.
Omnicom's 2002 annual report summarizes the company's financial and operating highlights for the year. Some key points include:
- Revenue increased 9% to $7.5 billion, with domestic revenue up 15% and international revenue up 3%.
- Net income increased 10% to $643 million. Earnings per share were $3.44, up from $3.13 the prior year.
- Omnicom continued its strategy of targeted acquisitions, adding around $360 million in revenue.
- The company's businesses won $4.2 billion in new business billings, outpacing competitors despite a lackluster global economy.
- Creative agencies within Omnicom
Omnicom's 2002 annual report summarizes the company's financial and operating highlights for the year. Key points include:
- Revenue increased 9% to $7.5 billion, with net income up 10% to $643 million.
- Traditional media advertising grew 9% while CRM and specialty communications grew over 14% and 17% respectively.
- Omnicom continued its strategy of targeted acquisitions, adding around $360 million in revenue.
- The company's businesses won $4.2 billion in new business, outpacing competitors despite a lackluster global economy.
- Omnicom maintained its position as the most creative agency network in the world.
The Progressive Corporation reported financial results for February 2006 with the following highlights:
- Net premiums written increased 2% to $1.209 billion compared to February 2005.
- Net income decreased slightly to $126.5 million (1%) compared to the previous year.
- Combined ratio increased 1.1 percentage points to 86.3%.
- Personal Lines accounted for the majority of net premiums written at $1.053 billion while Commercial Auto was $154.4 million.
- The Progressive Corporation reported financial results for February 2006, with net premiums written up 2% and net premiums earned up 5% compared to February 2005.
- Net income was $126.5 million, down slightly from $127.7 million in February 2005. Earnings per share was $0.64, up 1% from $0.63 in February 2005.
- The combined ratio was 86.3, 1.1 points higher than February 2005, reflecting a 1% increase in losses and LAE and a 1% increase in expenses.
General Mills reported financial results for fiscal year 2006 that marked the beginning of a new phase of growth for the company. Net sales increased 4% to over $11.6 billion worldwide, and segment operating profit grew 5% despite significant input cost inflation. Earnings per share were $2.90. The company aims to deliver low single-digit sales growth, mid single-digit operating profit growth, and high single-digit earnings per share growth over the next 3-5 years. International expansion and growth in new retail channels will be important drivers of the company's future financial performance.
Merrill Lynch reported first quarter 2003 net earnings of $685 million, a 6% increase from $647 million in the first quarter of 2002. Revenues were $4.9 billion, down 5% from the prior year quarter. While commissions revenue declined due to lower transaction volumes, debt trading increased revenues. Expenses decreased 6% to $2.5 billion for compensation and 7% for other expenses through cost cutting. The results demonstrated progress in diversifying revenues despite difficult markets.
Merrill Lynch reported second quarter net earnings of $1 billion, their second-best quarterly earnings ever. Net revenues for the quarter were $5.3 billion, a 7% increase over the previous year. The pre-tax profit margin of 27.6% was the highest in over 25 years. Global Markets and Investment Banking saw a 25% increase in revenues compared to the previous year and achieved a record pre-tax profit margin. Global Private Client revenues declined 6% from the previous year due to reduced transaction activity, but the pre-tax profit margin increased. Merrill Lynch continues initiatives to diversify revenues and leverage client relationships across business segments.
Merrill Lynch reported net earnings of $1.04 billion for Q3 2003, a 50% increase from $693 million in Q3 2002. This was the highest third quarter earnings in company history and the second-best quarterly earnings overall. Revenues increased 16% to $5.1 billion from Q3 2002, driven by strong growth in global markets and investment banking. The pre-tax profit margin rose to 29.8% from 24.2% in Q3 2002.
Merrill Lynch reported record quarterly and annual net earnings for 2003. Net earnings for 2003 were $4.0 billion, up 59% from 2002. Fourth quarter net earnings were $1.2 billion, also the highest ever reported. Global Markets and Investment Banking pre-tax earnings increased 65% for the year due to revenue growth and expense discipline. Global Private Client pre-tax earnings rose 22% for the year due to diverse revenue sources and operating leverage. Merrill Lynch Investment Managers pre-tax earnings declined 11% for the year but rose in the fourth quarter.
- Merrill Lynch reported second quarter net earnings of $1.1 billion, up 10% from the second quarter of 2003. Earnings per share were $1.06.
- Global Private Client and Merrill Lynch Investment Managers saw increased earnings, while Global Markets and Investment Banking saw lower earnings.
- For the first half of the year, net earnings were $2.3 billion, up 44% from the first half of 2003, driven by revenue growth of 13% and improved profit margins.
Merrill Lynch reported record quarterly earnings for Q1 2004, with net earnings up 95% year-over-year to $1.3 billion. Net revenues grew 27% to $6.1 billion, driven by growth across all three business segments. Global Markets and Investment Banking saw increased revenues from debt and equity trading. Global Private Client achieved record pre-tax earnings on higher asset values and net inflows. Merrill Lynch Investment Managers posted a near tripling of pre-tax earnings due to increased assets under management. The company will continue focusing on disciplined growth, diversification, and maintaining strategic balance across its businesses.
Merrill Lynch reported third quarter net earnings of $920 million, down 8% from the previous year. For the first nine months of the year, net earnings were $3.3 billion, up 24% from the same period last year. While markets were challenging in the quarter, the company's diversification efforts helped deliver solid results. Merrill Lynch continues investing in key growth initiatives across its business segments.
Merrill Lynch reported record results for full year 2004, with net earnings of $4.4 billion, up 16% from 2003. All three of Merrill Lynch's business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - contributed to this performance by generating higher revenues and pre-tax earnings compared to 2003. In the fourth quarter of 2004 specifically, net revenues increased 21% to $5.9 billion compared to the same period in 2003. Merrill Lynch's chairman and CEO stated that the company is well positioned for continued shareholder rewards in the future.
Merrill Lynch reported first quarter 2005 net earnings of $1.2 billion, down 3% from the first quarter of 2004. Diluted earnings per share were $1.21. Net revenues increased 3% to $6.2 billion from the first quarter of 2004. Merrill Lynch also announced a new $4 billion share repurchase program and raised its quarterly dividend per share by 25%.
Merrill Lynch reported second quarter 2005 earnings per share of $1.14, up 9% from the second quarter of 2004. This was the highest earnings per share Merrill Lynch has achieved in a second quarter. Net revenues increased 20% compared to the prior year quarter. All three of Merrill Lynch's business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - saw increases in net revenues and pre-tax earnings compared to the second quarter of 2004. Merrill Lynch had record first half earnings per share, pre-tax earnings, and net earnings for the first six months of 2005.
Merrill Lynch reported record quarterly earnings for Q3 2005, with net earnings per share of $1.40, up 51% from the prior year. Net revenues were $6.7 billion, up 38% year-over-year. All three business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - saw revenue and earnings increases. Merrill Lynch's performance was driven by strong growth across its businesses and the benefits of investments made over the past two years.
Merrill Lynch reported record earnings for 2005, with earnings per share of $5.27, up 20% from 2004. Net earnings were $5.2 billion, up 18% from 2004. All three of Merrill Lynch's business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - generated record pre-tax earnings and higher revenues compared to 2004. Merrill Lynch also announced a 25% increase to its quarterly common stock dividend to $0.25 per share.
Merrill Lynch reported record quarterly net revenues of $8.0 billion for Q1 2006, up 28% from Q1 2005. Net earnings were $475 million, though excluding one-time compensation expenses earnings were $1.7 billion, up 36% from Q1 2005. All three business segments saw increased net revenues both sequentially and year-over-year. Global Markets revenues rose 37% to $4.6 billion due to strong performance across equity, debt, and investment banking. Global Private Client revenues increased 13% to $2.9 billion on higher fees and client assets. Merrill Lynch Investment Managers revenues grew 38% to $570 million on higher assets under management.
Merrill Lynch reported record quarterly net revenues of $8.2 billion for Q2 2006, up 29% from Q2 2005. Net earnings were $1.6 billion for Q2 2006, up 44% from Q2 2005. All three business segments - Global Markets and Investment Banking, Global Private Client, and Merrill Lynch Investment Managers - delivered substantial year-over-year revenue and earnings growth. Merrill Lynch also achieved several business and financial records in Q2 2006. Looking forward, Merrill Lynch will continue investing in talent and technology to build capabilities and achieve future growth.
This document is a press release from Merrill Lynch announcing record third quarter and year-to-date 2006 earnings. Some key points:
- Third quarter net earnings were $3.0 billion, or $3.17 per diluted share, up significantly from third quarter 2005. Excluding a one-time gain from the BlackRock merger, EPS was $2.00, up 43% from third quarter 2005.
- Year-to-date net earnings and EPS were also records at $5.2 billion and $5.19 respectively, up 38% from the same period in 2005. Excluding one-time items, year-to-date EPS was $5.27, up 40% from 2005
Merrill Lynch reported record financial results for full year 2006, with net revenues of $34.7 billion, net earnings of $7.5 billion ($7.59 per share), and return on equity of 21.3%. The fourth quarter saw net revenues of $8.6 billion, net earnings of $2.3 billion ($2.41 per share), and return on equity of 25.6%. Business segments Global Markets and Investment Banking and Global Wealth Management both had strong growth in revenues and earnings for the full year and fourth quarter. Merrill Lynch was well positioned for continued growth in global markets and wealth management.
Merrill Lynch reported strong financial results for the first quarter of 2007, with net revenues of $9.9 billion, up 24% from the first quarter of 2006. Net earnings were $2.2 billion, up 354% from the prior year period, driven by record revenues in fixed income, currencies and commodities, equity markets, and investment banking. Global wealth management also saw growth, with record fee-based revenues and client assets totaling $1.6 trillion, up 10% from the year before. Looking forward, Merrill Lynch expects continued growth and remains focused on disciplined expansion.
Merrill Lynch reported strong financial results for the second quarter and first half of 2007, with record revenues and earnings. Net revenues for Q2 2007 increased 19% year-over-year to $9.7 billion, while net earnings increased 31% to $2.1 billion. Both Global Markets and Investment Banking and Global Wealth Management saw record revenues. For the first half of the year, net revenues were up 21% to a record $19.6 billion, with net earnings up 104% to $4.3 billion. Merrill Lynch exceeded expectations in a volatile market environment and saw continued growth across all business segments and global regions.
- Merrill Lynch reported a net loss from continuing operations of $8.6 billion for full year 2007, significantly below net earnings of $7.1 billion in 2006. The loss was primarily driven by significant declines in Fixed Income, Currencies & Commodities (FICC) net revenues in the second half of 2007, which more than offset record revenues in other business lines.
- For Q4 2007 specifically, Merrill Lynch reported a net loss from continuing operations of $10.3 billion, down substantially from net earnings of $2.2 billion in Q4 2006. This was mainly due to large write-downs related to mortgage-backed securities and hedges with financial guarantors.
- Several
Merrill Lynch reported a net loss of $1.97 billion for Q1 2008 compared to net earnings of $2.03 billion in Q1 2007. Revenues fell 69% to $2.9 billion due to write-downs related to US ABS CDOs and credit valuation adjustments on hedges with financial guarantors. However, Global Wealth Management saw record quarterly revenues with strong fee income and $9 billion in annuity inflows. While investment banking revenues fell 40% due to lower deal volumes, the business pipeline was only down 5% overall from year-end levels.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
How to Identify the Best Crypto to Buy Now in 2024.pdfKezex (KZX)
To identify the best crypto to buy in 2024, analyze market trends, assess the project's fundamentals, review the development team and community, monitor adoption rates, and evaluate risk tolerance. Stay updated with news, regulatory changes, and expert opinions to make informed decisions.
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The eLITE RuPay Platinum Credit Card, a strategic collaboration between Poonawalla Fincorp and IndusInd Bank, represents a significant advancement in India's digital financial landscape. Spearheaded by Abhay Bhutada, MD of Poonawalla Fincorp, the card leverages deep customer insights to offer tailored features such as no joining fees, movie ticket offers, and rewards on UPI transactions. IndusInd Bank's solid banking infrastructure and digital integration expertise ensure seamless service delivery in today's fast-paced digital economy. With a focus on meeting the growing demand for digital financial services, the card aims to cater to tech-savvy consumers and differentiate itself through unique features and superior customer service, ultimately poised to make a substantial impact in India's digital financial services space.
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
Newman Leech's success in the real estate industry is based on key lessons and principles, offering practical advice for new investors and serving as a blueprint for building a successful career.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
2. Financial Summary
DILUTED NET EARNINGS CORE DILUTED NET EARNINGS
NET SALES
per common share per common share
billions of dollars
40.0 2.85* 2.95*
2.59
2.56
38.1 2.47
37.2
35.8
35.3 2.28 2.56
2.01 2.28
2.01
1996 1997 1998 1999 2000 1996 1997 1998 1999 2000 1996 1997 1998 1999 2000
* Excluding Organization 2005 program
costs of $.48 per share after tax in 2000
and $.26 per share after tax in 1999.
Amounts in millions except per share amounts Years ended June 30
2000 1999 % change
Net Sales $39,951 $38,125 5%
Operating Income 5,954 6,253 -5%
Core Operating Income† 6,768 6,734 1%
Net Earnings 3,542 3,763 -6%
Core Net Earnings† 4,230 4,148 2%
Per Common Share
Diluted Net Earnings 2.47 2.59 -5%
Core Diluted Net Earnings† 2.95 2.85 4%
Dividends 1.28 1.14 12%
† Excludes Organization 2005 program costs.
3. Dear Shareholders,
Fiscal 2000 was a tough year. Earnings came in below the goals we had originally established and felt
we could achieve. In our drive to meet changes in the marketplace – globalization, the Internet, con-
solidation among retailers – we tried to do too much too fast. As a result, we lost critical balance in
several key areas:
> We grew top-line sales more than we had over the past few years, but bottom-line earnings growth
came in below historical rates.
> We introduced more new brands than during any other period in our history, but our biggest, most
profitable brands didn’t grow at acceptable rates.
> We invested for the future – in new businesses and developing markets – but some costs grew faster
than revenues.
> We made important leadership changes, placing people into new jobs as part of our organizational
restructuring, but we lost continuity in some parts of the business.
Even in the face of these challenges, our core earnings were above a year ago – delivering record results.
> Net sales grew 5% on 4% unit volume growth – very strong improvement over last year, when
volume was flat.
> Net earnings were $3.5 billion or $2.47 per share, compared to $3.8 billion or $2.59 per share
in 1999.
> Core net earnings, which exclude $688 million of Organization 2005 costs, were $4.2 billion. Core
earnings per share grew 4% to $2.95.
While these results demonstrate progress, P&G is capable of delivering better results.We are confident
we can reestablish the balance needed to deliver top-line revenue growth and bottom-line earnings
growth.We have the core competencies and strengths to win; our new organizational design remains
fundamentally right; and we have a focused plan to drive both sales
and profit growth.
FUNDAMENTALS TO WIN
Our goal is simple: to create the most successful global brands
in every category everywhere we compete. And we have the
strengths to do it.
Today P&G has more leading brands than any other consumer
products company in the world.We have strong relationships
with our retail customers around the world. And our innova-
tive people continue to set industry standards.
A. G. Lafley and John E. Pepper
4. 2
Big Leadership Brands P&G’s megabrands generate
significant sales and hold strong leadership positions.
Eight brands are global leaders in their categories.
Ten P&G brands each generate over a billion dollars
in sales a year – far more billion-dollar brands than
our key competitors. Our 10 largest brands, together,
would be a Fortune 100 company. And we have
several other brands already in the market that we
believe have billion-dollar potential.
Superior Customer Relationships In a recent U.S.
survey by Cannondale Associates, retailers were
asked to rank manufacturers on a number of
competencies. P&G was ranked number one in
virtually every category:
> “Clearest Company Strategy”
> “Brands Most Important to Retailers”
TEN P&G BRANDS HAVE BILLION-DOLLAR SALES
> “Best Brand Marketers Overall”
> “Most Innovative Marketing Programs”
This high regard by our customers is increasingly important.Today, our top 30 customers represent
nearly 45% of our total volume, and we expect them to account for more than half of our volume by
2005. More importantly, these customers contributed about two-thirds of our recent volume growth
and have a strong potential to drive future growth.
Innovation Leadership The quality of our people continues to be our most valuable asset. And that
quality is demonstrated by the innovation of our organization.
> More than 8,000 scientists and researchers are accelerating the pace of new product and
technology invention.
> We have a global innovation network of 18 technical centers in nine countries on four continents.
> P&G holds more than 27,000 patents and applies for 3,000 more each year – or roughly 10 a day!
In fact, we are among the top 10 patent-producing companies in the world – well ahead of any
other consumer products company.
Importantly, innovation isn’t limited to products alone. P&G people are innovative leaders in every part
of our business. For example:
> We are pioneering new Internet-based business models. Last year, we launched our initial Internet
brand, reflect.com, the first to offer truly personalized beauty care products online.This venture
5. 3
is enabling us to get valuable experience in both Internet marketing and mass customization
of products.
> We led the formation of a consortium of more than 50 companies to create a consumer products
industry marketplace called Transora.This business-to-business portal will enable companies in our
industry to buy and sell more than $200 billion of supplies and services annually, and will result in
substantial savings for P&G.
What we hope you see from these examples is that P&G – through the men and women who make
up our Company – is more than ever an industry innovator and leader.
RIGHT ORGANIZATION DESIGN
To gain even more value from our basic strengths, we have changed the way we’re organized and the
way we work. Our goals were to make it easy for innovation to flow across the enterprise and around
the world; to learn directly from consumers as early as possible; and to profitably commercialize the
best ideas and inventions quickly.
We’re doing all that. Global Business Units flow product innovations across categories and geographic
markets. Market Development Organizations get initiatives to local markets faster, more creatively, at
less cost. And our Global Business Services organization leverages our size to deliver better-quality
services internally at significantly lower cost to the Company.
We designed our new organization to be global and local at the same time – a paradoxical challenge
that we believe is key to our future success.
OUR ACTION PLAN FOR PROFITABLE GROWTH
We have learned a lot from our experience over the past year, and have applied this learning to a
four-point plan to drive both sales and profit growth.
First, we are focusing sharply on building our biggest, strongest global brands, the core of our business.
We need to be sure we are consistently growing our
market share on these brands.
Second, we are making tougher choices about investing in new P&G’S ACTION PLAN FOR GROWTH
products and new businesses. We’ll use fast-cycle learning tech-
niques to get rapid consumer validation of our biggest ideas,
01 BUILD BIG BRANDS
and commercialize those ideas more quickly worldwide.
02 INVEST IN INNOVATION
Third, we are working hard to get even more value from our
03 DEEPEN CUSTOMER PARTNERSHIPS
strong customer relationships. We’ll build on this strength by
REDUCE COSTS AND IMPROVE
collaborating more closely with customers.The result will
04
>>>
CASH MANAGEMENT
be even more innovative marketing programs for new and
established brands alike.
6. 4
Fourth, we are placing greater emphasis on rigorous cost control and cash management. We deployed teams to
drive out waste and to find new efficiencies in overhead management, marketing support and product
costs. In addition, we’ve renewed our emphasis on capital investment and working-capital efficiency.
We highlight some of our efforts in these areas on pages 8 – 11.
A PASSION FOR WINNING
P&G people are accustomed to being winners and to doing what we commit to do – or better. We
take great pride in our brands, our innovation leadership, our customer relationships, the trust we’ve
earned from consumers – and our ability to deliver steady, reliable growth for our shareholders.
Whenever our leadership in any of these areas is challenged, we take it seriously. And personally. For
example, in the mid-’80s, we faced a significant financial setback. Earnings for fiscal 1985 declined
29% from the previous year. Back then we addressed the issues head-on, just as we’re doing now. In the
15 years since, sales have grown from $13.6 billion to $40 billion – a rate of 7% per year. And profits
have increased from a little more than $600 million to $4.2 billion, an average growth rate of more
than 13% per year.
We don’t point to these numbers as any kind of forecast, but they do underscore that we’ve faced
major problems in the past and have overcome them. By addressing those problems just as we are
tackling present issues, we continued to deliver the leadership levels of growth that both you and we
expect from P&G.
We are at our best when working on tough challenges because P&G people have such a tremendous
passion for winning. In fact, that passion is our defining characteristic as an organization. And it is
that passion that will ensure P&G maintains its rightful place as the preeminent consumer products
company in the world.
John E. Pepper A. G. Lafley
Chairman of the Board President and Chief Executive
August 1, 2000 August 1, 2000
MANAGEMENT CHANGE
After 30 years of service, Durk I. Jager retired July 1 as chairman, president, chief executive and a director of P&G. His visionary
leadership and many contributions accelerated the pace of product innovation for the Company. He has left a legacy of innovation,
not only in new brands, but also in areas such as use of the Internet and strengthening of customer relations. His emphasis
on a culture that reaches out for breakthroughs has provided a strong foundation for future progress.
7. 5
Up-front with A.G.
ON JUNE 8, A.G. LAFLEY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF P&G.
HERE HE ANSWERS SOME OF THE QUESTIONS HE’S BEEN ASKED SINCE THEN
ABOUT THE STATE OF P&G’S BUSINESS AND HIS PLANS FOR THE FUTURE.
A.G. Lafley, President and Chief Executive
Q: Will P&G’s growth strategy change under the Q: How will you balance investment in big,
new leadership? established brands and new brands?
A: No. The basic building blocks of our growth A: Our biggest flagship brands are popular with
strategy remain unchanged: consumers, often are the leader in their product
category and are the greatest, sustainable source
> Building our established and most
of profits and cash flow. Consequently, we must
profitable brands
always ensure that these brands are strong and
> Introducing new brands and entering
growing. At the same time, our future depends
new categories
on our ability to continually create tomorrow’s
> Acquiring brands that can help us strengthen
big brands. To do that, we will judiciously invest
existing businesses or enter new businesses
in new brands that we believe have global leader-
and markets
ship potential.
> Improving the mix of our brand portfolio
The key is striking the right balance. We did it in
with more premium-performance,
our fabric & home care business in North America
higher-priced products
this past year, where we delivered double-digit
In any given year, the contribution from each of sales growth, with gains on big brands like Tide
these elements will vary. But taken together, these and Downy, and we increased profits, while making
building blocks provide the basis for balanced significant investments in new brands like Febreze
growth in top-line sales and bottom-line profits. and Swiffer.
8. 6
Q: How will you sharpen P&G’s ability to control costs?
A: Over the past year, some of our costs grew faster than sales. A number of factors were responsible, including
big investments in new brands and the overall impact of massive organizational change.
We’ve now redoubled our efforts to leverage a traditional P&G strength – tough cost control. We’re focusing on:
> Making more choiceful investments in innovation
> Tying marketing spending more tightly to sales potential
> Using new approaches to target consumers more efficiently
> Holding the rate of increase in product costs below the rate of inflation
> Working aggressively to contain overhead costs
All of this is meant to ensure that we don’t ask consumers to pay for costs that don’t add value.
Q: Why do you believe the new organization
Q: What do you see as P&G’s core source of
design you implemented last year is still right
competitive advantage?
for the future?
A: P&G’s core strength is its ability to build big,
A: It’s right because it extends the competitive
leadership brands. Our goal is to continue doing
advantages that I just talked about. It also positions
that better and more consistently than any other
us to adapt to changes in the external environment.
company in the world.
Our success in building brands is based on The Internet, globalization and the consolidation
three factors: of the retail industry have combined to create a
dynamic global marketplace. To lead in such an
> Understanding consumer needs. We talk with
environment, you have to be big and small at the
more than 5.5 million consumers worldwide
same time. More specifically, you have to be a
every year. We use a variety of approaches,
global company that can operate like a small local
from in-home visits to concept and product test-
business in every part of the world. Our new struc-
ing via the Internet. In this way, we’re able to
ture helps us to do that.
discover new, unmet and often unarticulated
consumer needs. Swiffer is a good example. This brand is built on
> Inventing new product technologies. This is what
a global marketing and technology platform –
we call “connecting what’s needed with what’s meaning the product and the marketing programs
possible.” We have more than 27,000 patented supporting it can be rolled out worldwide. We’ve
technologies and, as a result, can simply find expanded Swiffer faster than any other brand
more innovative ways to turn our best ideas in our history. Our local Market Development
into improved products that better meet Organizations were essential to this. They worked
consumer needs. with retail customers and tailored marketing plans
> Commercializing and expanding new products
to win with local consumers. As a result, we’ve
globally. On the strength of our marketing and created a brand with billion-dollar potential.
distribution partnerships, we can introduce big,
The transition to this new organizational design is
new ideas faster than ever before.
proving more challenging than we expected. But it
These capabilities have helped us win with is fundamentally the right approach and we’re on
consumers around the world. Shoppers buy P&G track to get the benefits we envisioned.
products more than 20 billion times a year – which
is the basis for a great deal of our confidence in
the Company’s future, and in the strength of P&G’s
core competencies as an innovator and marketer.
9. 7
Q: Why should I invest in P&G when companies
Q: What criteria guide your acquisition plans?
in other sectors, like technology, are growing at
A: We look for acquisitions that will provide a good
a faster rate?
financial return for our shareholders, while consider-
A: Investment decisions require an assessment of
ing key strategic issues:
risk. Many high-growth, high-return stocks come
> We want brands that can help expand our leader-
with a relatively high risk. Investors willing to
ship in existing categories. Tampax, for example,
absorb that risk will pay a share price premium.
strengthened our feminine care business by get-
P&G, on the other hand, delivers real profits and
ting us into the tampon segment.
> We also look for opportunities that help us enter significant cash flow today with an expectation of
steady growth in the years ahead – a combination
entirely new businesses, such as Iams, which took
we have proven can result in meaningful share
us into premium pet health and nutrition.
price appreciation.
In addition to these basic criteria, we look for acqui-
sitions with which we can leverage our considerable We’re not trying to be a high-risk, high-growth com-
strengths in marketing, distribution scale and cus- pany. We’re committed to delivering the same kind
tomer relationships. Iams is actually a great example of reliable shareholder returns that we’ve delivered
of all of this: It brings us product technology that historically – and that is precisely the reason many
leverages our own competencies in health and people will continue to invest in us. In fact, it may
nutrition, and a brand that we can expand world- be the reason why we’ve added more than 200,000
wide with our superior marketing and distribution new shareholders in the past year alone.
know-how.
Historically, we’ve focused on small-to-medium size
acquisitions. Of course, if much larger opportunities
emerge, we’ll look at them, but they’re not essential
to our growth goals.
10. 8
Global Laundry Leader
P&G is focusing on four areas that
are critical to moving our business
ahead: building our biggest, most
established brands; making good
investment choices in innovation and
new businesses; deepening our rela-
tionships with customers; and manag-
ing costs and cash more rigorously.
The following examples demonstrate
how we are doing this:
BUILD BIG BRANDS
01
ACTION PLAN
CASE IN POINT > TIDE AND ARIEL
Investing in our largest brands is providing an Essentials in Europe; and soon Tide Rapid Action
engine for growth. Continuous innovation in Tablets, which follow Ariel Tablets in Europe.
> All of these initiatives have been designed to do
products and marketing is paying off.
> Tide and its sister brand outside the U.S., Ariel, one thing: delight consumers. And what’s the result?
together have more sales than any other P&G brand. U.S. Tide ended last fiscal year with a market share
> In the last 18 months, P&G has introduced several more than four times larger than the nearest competi-
breakthrough innovations in Tide and Ariel: Tide with tor, contributing to record results for North America
Bleach Sanitization in the U.S. and Ariel Bleach Plus fabric and home care. Ariel is sold in 115 countries
in Japan; Tide with Activated Hydrogen Peroxide in and is the first or second leading brand in more than
the U.S. and Ariel Hygiene in Europe; Tide Deep 25 of them.
Clean, TideKick, Tide WearCare in the U.S. and Ariel
Visit www.tide.com to register to win a year’s supply of Tide via Tide’s Neighbor-to-Neighbor E-mail Newsletter.
11. 9
A New Way to Grow
INVEST IN INNOVATION AND NEW BUSINESS
02
ACTION PLAN
CASE IN POINT > IAMS
We are focusing on making optimal choices for Iams’ potential with about a 4% share of the
our investments in new brands and product cate- $25 billion commercially prepared pet food market.
gories, to maximize commercial success and Iams sells its Eukanuba and Iams brands of dog
financial return. and cat food in 77 countries.
> In September 1999, after careful scrutiny, P&G > In the six months following the acquisition, P&G
entered an entirely new business when it acquired expanded the Iams brand to 25,000 additional
the Iams Company, a world leader in pet health and retail outlets in North America. (Its super-premium
nutrition. Iams is very similar to P&G in its core val- Eukanuba brand continues to be sold only in pet
ues, strong brand names, research investment for specialty stores.)
> The results of this expansion have been outstanding.
superior products, and history of leading innovation.
> We quickly assessed the growth opportunity. This year, the Iams Company reached $1 billion in
Globally, we are only scratching the surface of sales, up 25% from when P&G acquired it.
Go to www.iams.com to register to win a one-year supply of pet food and find valuable information about pet care.
12. 10
Partnering for a Winning Launch
DEEPEN CUSTOMER RELATIONSHIPS
03
ACTION PLAN
CASE IN POINT > PHYSIQUE
> Working closely with retailers to create a prestige
P&G is partnering with customers to build strategic
relationships that create a strong return on invest- shopping experience, we created store displays and
ment for both. point-of-sale materials. These addressed a key
> In January 2000, P&G launched a revolutionary line source of dissatisfaction for consumers – not enough
of hair care products based on our best science and information in the store to help them select the
a deep understanding of Physique’s target consumer. right product.
> The result? Within six months of its launch, Physique
This understanding enabled the brand to reach its
audience in very different ways – where they live, was already one of the top 10 hair care brands in
where they work, where they play and where they the U.S. This was the fastest new brand introduction
shop. In-store consultants helped consumers find in this $7 billion market.
the right products for the style they wanted.
Go to www.physique.com to get free samples and find out more about the science behind Physique.
13. 11
Smart Savings
REDUCE COSTS AND IMPROVE CASH MANAGEMENT
04
ACTION PLAN
CASE IN POINT > GBS
GBS employees Maricarmen Pijem and Miguel Pantoja
P&G has a long history of cost control, and we services, workplace services, purchasing, customer
have focused on this issue again as a key part logistics, accounting and financial reporting, and
of our Action Plan. information technology – are being consolidated in
> Global Business Services (GBS) has designed, and key service centers around the world.
> GBS already has generated significant savings by
now is putting in place, an internal system of Web-
based services to deliver the right level of service at simplifying, standardizing and automating the way
the right price and at significantly lower overall cost we work. It is on track to deliver at least $200 million
to the Company. in after-tax savings annually by 2004.
> Business activities which previously were dispersed
across many business units – such as employee
Go to www.pg.com for the latest financial news about P&G.
14. FINANCIAL TABLE OF CONTENTS
13 Financial Review
24 Responsibility for the Financial Statements
24 Independent Auditors’ Report
25 Consolidated Statements of Earnings
26 Consolidated Balance Sheets
28 Consolidated Statements of Shareholders’ Equity
29 Consolidated Statements of Cash Flows
30 Notes to Consolidated Financial Statements
39 Financial Highlights
40 Directors and Corporate Officers
15. FINANCIAL REVIEW 13
The Procter & Gamble Company and Subsidiaries
costs. Excluding these charges, gross margin increased
RESULTS OF OPERATIONS
to 47.4%, reflecting the impact of high-performance,
The Company’s results reflected strong sales growth,
premium-priced initiatives and effective cost manage-
with earnings impacted by higher spending on product
ment in the face of rising material costs.
initiatives and Organization 2005 costs.
Worldwide marketing, research and administrative
The Company introduced several new brands, expanded
expense was $12.48 billion versus $10.85 billion in the
strong established brands into new markets, acquired
prior year. The increase to 31.2% of net sales from 28.4%
new businesses and introduced significant product
was primarily due to increased spending on product
upgrades on major brands. The increased innovation
initiatives. Organization 2005 costs increased marketing,
resulted in significant investments at a time when
research and administrative expense by $318 million,
commodity costs also increased, currency had a negative
primarily due to employee separation expenses.
impact, the Company incurred additional costs to tran-
Excluding these charges, marketing, research and admin-
sition into its new global organizational structure and
istrative expense increased 13% over 1999.
competition reacted strongly to business initiatives.
Operating income declined by 5%. Excluding the charges
Net earnings were $3.54 billion or $2.47 per share
for Organization 2005, operating income improved 1% as
compared to $3.76 billion or $2.59 per share in 1999.
business results were supplemented by lower employee
Results included charges of $688 million after tax for
benefit costs reflected in the Corporate segment.
current year costs of the Organization 2005 program.
Organization 2005 is the Company’s multi-year program Interest expense increased 11% to $722 million on
designed to realign the organization into global product- increased debt, primarily due to acquisitions and share
based segments from a geographic structure and change repurchases. Other income, net, which consists primarily
the work processes and culture. of interest and investment income, contributed $304 mil-
lion in the current year compared to $235 million in the
For the fiscal year, core net earnings, which exclude
prior year, including impacts of the Company’s ongoing
Organization 2005 costs, increased 2% to $4.23 billion.
minor brand divestiture program.
Core net earnings per share were $2.95, an increase of
4% from the prior year. Volume and sales progress drove The Company’s effective tax rate for the year was 36.0%,
core earnings growth, but were partially offset by higher compared to 35.5% in the prior year. This change reflects
spending, primarily behind new product initiatives. a reduction in the core earnings rate, more than offset by
the impact of tax rate effects from the Organization 2005
Worldwide net sales for the current year were $39.95 bil-
program. Excluding Organization 2005 costs and related
lion, an increase of 5% versus last year. Excluding a
tax effects, the effective tax rate was 33.4% compared
negative 2% exchange rate impact, net sales increased
to 34.4% in the prior year.
7% on 4% unit volume growth. This growth reflects
strong product initiative activity, the acquisition of the Net earnings margin was 8.9% versus 9.9% in the prior
Iams pet health and nutrition business and progress on year. Excluding the Organization 2005 charges, core
flagship brands, largely in fabric and home care. net earnings margin was 10.6%, down from 10.9% last
year, reflecting the strong top-line growth offset by
Worldwide gross margin was 46.1%, compared to 44.8%
increased spending.
in the prior year. Gross margin includes $496 million in
charges related to the Organization 2005 program. The Company’s action plan for the next year focuses on
These charges consisted primarily of accelerated depre- balancing top-line and bottom-line progress: growing
ciation, asset write-downs and employee separation big brands in core categories, investing smartly in
commercialization of innovation, driving out costs and
improving cash flow.
16. FINANCIAL REVIEW (CONTINUED)
14
The Procter & Gamble Company and Subsidiaries
Interest expense increased 19% to $650 million in 1999, on
The following provides perspective on the year ended
increased debt, due mainly to share repurchases. In 1998,
June 30, 1999, versus June 30, 1998:
interest expense was $548 million. Other income, net,
Worldwide net earnings were $3.76 billion in 1999, flat
was $235 million in 1999, versus $201 million in 1998.
versus $3.78 billion in 1998.
The Company’s effective tax rate for the year was 35.5%,
Worldwide net sales in 1999 were $38.13 billion, up
compared to 33.8% in 1998. The increase reflected a
3% from $37.15 billion in the prior year on flat unit vol-
reduction in benefits for research and development tax
ume. The increase in sales was attributable to improved
credits in North America, which were included in 1998
pricing in all regions and favorable volume and product
results, as well as the impact of various country tax
mix in North America, partially offset by exchange
rates on Organization 2005 program costs. Excluding
impacts. Unfavorable exchange rates, primarily in Asia
Organization 2005 program costs and related tax effects,
and Latin America, depressed sales by 1% for the year.
the tax rate was 34.4%.
Worldwide gross margin increased to 44.8% from 43.8%
Over the last several years, the Company maintained
in 1998, reflecting effective cost savings, primarily in
an ongoing program of simplification and standardiza-
North America. Organization 2005 charges increased
tion, which included projects to consolidate selected
cost of products sold by $443 million in 1999, as a result
manufacturing facilities, re-engineer manufacturing and
of asset write-downs and accelerated depreciation.
distribution processes, redesign organizations, simplify
Excluding these charges, gross margin increased to 46.0%.
product line-ups and divest non-strategic brands and
Worldwide marketing, research and administrative assets. This program did not have a significant impact
expense was 28.4% of net sales, compared with 27.5% on 1999 or 1998 net earnings. Beginning with the
in 1998. The 6% increase in total spending was primarily fourth quarter of 1999, the restructuring aspects of this
due to increased research spending, primarily in the program were superseded by Organization 2005.
paper and health care businesses, and increased spend-
Certain reclassifications of the prior years’ amounts
ing for new initiatives. Organization 2005 charges
have been made to conform with the current year
increased marketing, research and administrative
presentation.
expense by $38 million, related primarily to employee
separation expenses.
FINANCIAL CONDITION
Operating income grew 3% in 1999. Excluding the
Cash flow from operations was $4.68 billion, $5.54 billion
charges for Organization 2005, operating income grew
and $4.89 billion in 2000, 1999 and 1998, respectively.
11%. These trends reflected sales growth and cost
Operating cash flow provided the primary source of funds
control efforts. Net earnings margin was 9.9% in 1999
to finance operating needs, capital expenditures and
versus 10.2% in 1998. Excluding the Organization 2005
shareholder dividends. Supplemented by additional
charges, core net earnings margin in 1999 was 10.9%,
borrowings, cash flow from operations also provided funds
the highest in 58 years.
to finance acquisitions and the share repurchase program.
17. FINANCIAL REVIEW (CONTINUED) 15
The Procter & Gamble Company and Subsidiaries
Cash and cash equivalents decreased $879 million in the The Company maintains a share repurchase program,
current year to $1.42 billion, reflecting acquisition spend- which authorizes the Company to purchase shares annu-
ing and lower net earnings, partially offset by the issuance ally on the open market to mitigate the dilutive impact of
of debt. In the prior year, cash and cash equivalents employee compensation programs. The Company also
increased by $745 million to $2.29 billion, reflecting has a discretionary buy-back program under which it
improved earnings, primarily concentrated in Europe. currently intends to repurchase additional outstanding
shares of up to $1 billion per year. Current year purchases
Capital expenditures were $3.02 billion in 2000, $2.83 bil-
under the combined programs were $1.77 billion,
lion in 1999 and $2.56 billion in 1998. Current year
compared to $2.53 billion in 1999 and $1.93 billion in
expenditures included initiatives and capacity increases
1998. The Company issued equity put options in 2000 for
in fabric and home care and paper, including spending
12 million shares at prices ranging from $60 to $71 per
on Organization 2005 projects. Capital expenditures
share, which reduce the Company’s cash outlay for share
are expected to increase in the upcoming year, behind
repurchases.
the Organization 2005 program, including increased
capacity. In 1999, capital spending was driven by stan- Common share dividends grew 12% to $1.28 per share in
dardization projects in paper and capacity expansions in 2000, compared to $1.14 and $1.01 in 1999 and 1998,
the paper and food and beverage businesses. respectively. For the coming year, the annual dividend
rate will increase to $1.40 per common share, marking the
Net cash used for acquisitions completed during 2000
45th consecutive year of increased common share divi-
totaled $2.97 billion, primarily related to the acquisitions
dend payments. Total dividend payments, to both
of The Iams Company and Affiliates, Recovery Engineering,
common and preferred shareholders, were $1.80 billion,
Inc. and a joint venture ownership increase in China. This
$1.63 billion and $1.46 billion in 2000, 1999 and 1998,
compares to acquisition spending of $137 million in 1999
respectively.
and $3.27 billion in 1998. Transactions in fiscal 1998 were
largely concentrated in paper businesses and included Total debt was up $2.75 billion to $12.13 billion, due to
Tambrands, Inc., the Loreto y Peña paper company in the issuance of long-term debt to fund acquisitions and
Mexico and the Ssangyong Paper Company in Korea. The share repurchases.
Company also increased ownership of various joint
Long-term borrowing available under the Company’s shelf
ventures in Asia and Latin America in 1998.
registration statement filed in 1995, as amended in July
The Company continues its program to divest certain 1997 and September 1999, was $1.87 billion at June 30,
non-strategic brands in order to focus resources on core 2000. Additionally, the Company is able to issue com-
businesses. The proceeds from these and other asset mercial paper at favorable rates and to access general
sales generated $419 million in cash flow in the current bank financing.
year, compared to $434 million and $555 million in 1999
and 1998, respectively.
18. FINANCIAL REVIEW (CONTINUED)
16
The Procter & Gamble Company and Subsidiaries
Strong sales growth was spurred by the introduction
The following pages provide perspective on the
of new brands and solid base business performance
Company’s business segments. The Company moved to
in North America and Northeast Asia, as well as contin-
a global product-based structure from a geographic struc-
ued expansion within the Southern Cone (Brazil, Chile,
ture effective July 1, 1999, and prior years’ results have
Argentina) of Latin America. Despite volume and sales
been restated for the change. Product-based segment
progress, earnings were down, primarily due to signifi-
results exclude items that are not included in measuring
cant investments in product initiatives.
business performance for management reporting
purposes, most notably certain financing, investing
Strong unit volume and sales growth was achieved in
and employee benefit costs, goodwill amortization and
North America versus the prior year. Several new brand
costs related to the Organization 2005 program.
initiatives were launched, including Swiffer, Dryel and
Mr. Clean Wipes, along with product upgrades on estab-
Sales in companies over which the Company exerts
lished brands, such as Tide. New business sales accounted
significant influence, but does not control the financial
for approximately half of the growth.
and operating decisions, are reported for segment
purposes in a manner similar to consolidated sub-
Western Europe posted slight volume increases behind
sidiaries. Taxes are reflected in the businesses at local
the introductions of Swiffer and Dryel, as well as the
statutory tax rates. The effects of these conventions
expansion of laundry tablets. Sales declined as pricing
are eliminated in the Corporate segment to reconcile to
lagged unfavorable exchange trends. Progress in Central
accounting principles generally accepted in the United
and Eastern Europe was strong following last year’s
States of America.
economic crisis in Russia and reflecting an improved
cost structure.
FABRIC AND HOME CARE
Northeast Asia delivered high double-digit growth on
Net sales for fabric and home care were $12.16 billion,
volume and sales, despite a challenging economic
an increase of 7% over the prior year. Unit volume grew
environment. Strength on Ariel and Joy, as well as the
5%. Excluding foreign exchange impacts, primarily in
introduction of Febreze in Japan and South Korea, drove
Western Europe, sales grew 9%. Net earnings for the
the increases.
segment were $1.45 billion, down 3% versus year ago.
In 1999, net sales increased 4% over 1998, on flat unit
Fabric and home care represents the Company’s largest
volume. Net earnings were $1.50 billion, a 6% increase.
business segment, accounting for nearly one third of
North America was a strong contributor to segment
sales and an even greater percentage of earnings.
results, driving both sales and earnings gains.
19. FINANCIAL REVIEW (CONTINUED) 17
The Procter & Gamble Company and Subsidiaries
Baby care volume was flat, as significant competitive
PAPER
challenges in Western Europe offset increases in other
The paper segment had net sales of $12.04 billion, down
markets. Excluding a 3% negative exchange impact,
1% from the prior year on flat unit volume. Excluding the
sales increased 1%. Earnings were affected by increased
impact of exchange rates, primarily the euro, sales were
marketing and administrative expense. The recent intro-
up 1%. Excluding the impact of the prior year divestiture
ductions of Pampers One-Ups! wipes and Luvs
of the Attends adult incontinence brand, unit volume
Splashwear, the expansion of Pampers into China and
increased 2%.
planned product improvements are expected to better
Net earnings were $1.07 billion, down 16%, reflecting position the baby care business by restoring consumer
tissues and towel expansion in Western Europe, invest- value in the face of the current price premium versus
ments in new product initiatives on Charmin, a tough competition. For fiscal 1999, pricing actions drove sales
competitive environment in baby care and feminine care up 5% on flat unit volume.
businesses, increased capacity and unfavorable raw and
Feminine care volume declined 9%, due primarily to the
packing material cost trends.
impact of the prior year divestiture of the Attends adult
In the current year, tissues and towel volume and sales incontinence brand. Excluding the divestiture, volume
grew 9% and 7%, respectively, behind geographic expan- declined by 3% primarily driven by competitive activity in
sion, as well as a major product upgrade on Charmin. Northeast Asia, China and Latin America. Sales decreased
Volume growth was broad-based in all major markets, 7%. Excluding exchange impacts, sales declined 4%.
led by the North America expansion of Charmin and Earnings were down due to lower volumes, combined
Bounty. Product introductions in the United Kingdom with product initiative related cost increases primarily in
contributed to volume progress in Western Europe. In North America and Western Europe. While unit volume
1999, volume and sales increased 7%, primarily due to declined 3% in 1999, sales increased marginally.
gains in North America and Northeast Asia.
In 1999, paper net sales increased 4% to $12.19 billion
Tissues and towel earnings declined despite volume on 1% unit volume growth, led by tissues and towel and
growth, as rising pulp and energy prices, combined with baby care. Net earnings were $1.28 billion, a 29%
investments in geographic expansions and product increase over 1998, primarily driven by baby care results.
initiatives, more than offset volume gains. In addition,
two new paper machines in North America and another
in the United Kingdom provided needed capacity, but
resulted in higher start-up costs. Commodity-driven pric-
ing actions were taken during the last quarter of the
year, but were not sufficient to offset the full year impact
of cost increases.
20. FINANCIAL REVIEW (CONTINUED)
18
The Procter & Gamble Company and Subsidiaries
North America increased volume behind premium product
BEAUTY CARE
introductions. Physique, positioned as a salon-quality
Net sales in beauty care were $7.39 billion, comparable to
brand, was launched in the last half of the year and
the prior year, but up 1% excluding the impact of unfavor-
achieved solid share results. The introduction of Old Spice
able exchange rates, primarily in Western Europe. Unit
Red Zone and expansion of Secret Platinum also provided
volume declined 2%, impacted by a difficult competitive
good share results.
environment in key European markets and significant
contraction of the market in China. Net earnings were In 1999, net sales declined 1% to $7.38 billion on a 5%
$894 million, a 3% decrease from the prior year. unit volume drop. Sales were negatively affected by the
financial crisis in Eastern Europe, as well as competitive
Sales in the current year were slightly ahead of volume
activity and the impact of divestitures of non-strategic
due to the focus on high-performance, premium-priced
brands in Western Europe. Net earnings were $917 mil-
initiatives, including the launch of the Physique styling-
lion, a 9% increase from 1998, reflecting favorable pricing
led line, cosmetics and skin care product initiatives and
and steady progress on cost control.
the expansion of Secret Platinum.
Earnings for the current year reflected the weakness in HEALTH CARE
China and Western Europe and higher marketing costs
Health care net sales were $3.91 billion, with growth
associated with the introduction of new products and
primarily coming from acquisitions. Volume and sales
initiatives on established brands, which more than offset
increased 34% and 36%, respectively, versus the prior
gains from minor brand divestitures.
year. Unfavorable exchange rates impacted sales by
Western Europe was negatively impacted by competitive 2%. Net earnings were $335 million, a 38% increase over
factors and the euro devaluation. Plans to restore 1999. Excluding the impact of acquisitions, health care
growth include improved focus on cost control, as well delivered sales growth of 4% despite a 2% volume
as the expansion of premium-priced initiatives such as decline, while earnings increased 17%.
the VS Sassoon and Head and Shoulders restages and
The Iams Company posted record results, doubling
expansion of Olay Total Effects.
distribution with the expansion into new retail chan-
China, especially hair care, was challenged by a wors- nels. Beyond the channel expansion, Iams introduced
ening economic situation, which fueled the growth of several successful product initiatives.
low cost local brands and a higher incidence of branded
Health care sales in North America grew behind strong
product counterfeiting. Going forward, the business
consumption, favorable pricing and volume progress in
will continue to focus on strengthening brand equities
pharmaceuticals. Oral care volume gains were driven by
through several upgrades on large brands.
the launches of Crest MultiCare Advanced Cleaning and
other premium dentifrice products.
21. FINANCIAL REVIEW (CONTINUED) 19
The Procter & Gamble Company and Subsidiaries
Actonel (risedronate sodium tablets) 5 mg., the Company’s Unit volume in Western Europe achieved double-digit
first major prescription drug, was launched in the fourth growth with the successful expansion of Pringles. Juice
quarter. Actonel is a bisphosphonate for the prevention volume suffered due to a temporary public relations
and treatment of osteoporosis and is the only therapy setback with Sunny Delight in the United Kingdom that
proven to significantly reduce spinal fractures in one year. has now been addressed. Recent launches in France and
A milestone payment received upon FDA approval Spain are expected to improve volume progress, along
of Actonel was essentially offset by launch costs in with additional launches in Western Europe.
the current year. The launch is off to a good start in the
Northeast Asia posted double-digit progress on volume
United States, United Kingdom and Germany, with
and sales driven by renewed strength in the snacks busi-
launches planned shortly in four more countries.
ness, as well as strengthening of the Japanese yen.
Western Europe depressed sales, primarily due to the
In 1999, net sales increased 1% to $4.66 billion, on a 4%
weak euro and lower volume. The Actonel launch is
volume increase. Net earnings were $328 million, a 12%
expected to impact Western Europe results more signif-
increase versus $294 million in 1998, which included
icantly next fiscal year.
significant initiative related spending.
In 1999, net sales were flat versus the prior year at
$2.88 billion on a 3% unit volume reduction. Net earn- CORPORATE
ings were $242 million, a 4% increase over 1998.
The Corporate segment includes both operating and
Earnings progress reflected a shift toward higher-margin
non-operating elements, such as: financing and invest-
pharmaceutical sales and pricing, mitigated by invest-
ing activities, goodwill amortization, employee benefit
ments in product launches.
costs, charges related to restructuring (including the
Organization 2005 program), segment eliminations and
FOOD AND BEVERAGE
other general corporate items.
Food and beverage net sales were flat versus last year at
Corporate sales reflected adjustments to reconcile
$4.63 billion, including a 1% negative exchange impact.
management reporting conventions to accounting prin-
Unit volume also was flat. Excluding the prior year divesti-
ciples generally accepted in the United States of America.
ture of Hawaiian Punch, unit volume increased 5% behind
strong growth in Western Europe and Northeast Asia, Corporate results reflected increased charges from
partially due to the expansion of Pringles. Net earnings Organization 2005 and goodwill amortization, partially
increased to $364 million, up 11% versus last year, pri- offset by lower corporate costs, including reduced
marily due to gross margin improvement. employee benefit costs and the proceeds of a patent
litigation settlement with Paragon Trade Brands, Inc.
Results in North America reflected significant competitive
activity, particularly in coffee and snacks. Initiative
launches helped drive volume, partially offsetting the
impact of the Hawaiian Punch divestiture. Despite product
cost savings, earnings were impacted by marketing costs
and other spending increases.
22. FINANCIAL REVIEW (CONTINUED)
20
The Procter & Gamble Company and Subsidiaries
HEDGING AND DERIVATIVE FINANCIAL INSTRUMENTS INTEREST RATE EXPOSURE
The Company is exposed to market risks, such as changes Interest rate swaps are used to hedge underlying debt
in interest rates, currency exchange rates and commodity obligations. Certain currency interest rate swaps are
prices. To manage the volatility relating to these expo- designated as hedges of the Company’s foreign net
sures, the Company nets the exposures on a consolidated investments.
basis to take advantage of natural offsets. For the resid-
Based on the Company’s overall interest rate exposure as
ual portion, the Company enters into various derivative
of and during the year ended June 30, 2000, including
transactions pursuant to the Company’s policies in areas
derivative and other instruments sensitive to interest
such as counterparty exposure and hedging practices.
rates, a near-term change in interest rates, at a 95%
The financial impacts of these hedging instruments are
confidence level based on historical interest rate move-
offset in part or in whole by corresponding changes in the
ments, would not materially affect the Company’s finan-
underlying exposures being hedged. The Company does
cial statements.
not hold or issue derivative financial instruments for trad-
ing purposes. Note 6 to the consolidated financial state-
CURRENCY RATE EXPOSURE
ments includes a discussion of the Company’s accounting
policies for financial instruments. The Company manufactures and sells its products in a
number of countries throughout the world and, as
Derivative positions are monitored using techniques
a result, is exposed to movements in foreign currency
including market value, sensitivity analysis and value at
exchange rates. The Company’s major foreign cur-
risk modeling. The tests for interest rate and currency
rency exposures involve the markets in Western and
rate exposures discussed below are based on a variance/
Eastern Europe, Asia and Mexico. The primary purpose
co-variance value at risk model using a one year horizon
of the Company’s foreign currency hedging activities is to
and a 95% confidence level. The model incorporates
manage the volatility associated with foreign currency
the impact of correlation and diversification from hold-
purchases of materials and other assets and liabilities
ing multiple currency and interest rate instruments,
created in the normal course of business. Corporate
assumes that financial returns are normally distributed
policy prescribes the range of allowable hedging activity.
and approximates the financial return for options and
The Company primarily utilizes forward exchange con-
other non-linear instruments. Estimates of volatility
tracts and purchased options with maturities of less
and correlations of market factors are drawn from
than eighteen months.
the RiskMetrics™ dataset as of June 30, 2000. In cases
where data is unavailable in RiskMetrics™ a reason- In addition, the Company enters into certain foreign
able proxy is included. currency swaps to hedge intercompany financing trans-
actions. The Company also utilizes purchased foreign
The Company’s market risk exposures relative to interest
currency options with maturities of generally less than
and currency rates, as discussed below, have not changed
eighteen months and forward exchange contracts to
materially versus the previous reporting period. In
hedge against the effect of exchange rate fluctuations
addition, the Company is not aware of any facts or
on royalties and income from international operations.
circumstances that would significantly impact such expo-
sures in the near term.
23. FINANCIAL REVIEW (CONTINUED) 21
The Procter & Gamble Company and Subsidiaries
Based on the Company’s overall currency rate exposure as To achieve this, changes are required to administrative
of and during the year ended June 30, 2000, including and manufacturing operations. As announced in June
derivative and other instruments sensitive to foreign 1999, the Company has undertaken a multi-year program
currency movements, a near-term change in currency to consolidate and standardize manufacturing opera-
rates, at a 95% confidence level based on historical tions, reduce enrollment and effect other actions integral
currency rate movements, would not materially affect the to the Organization 2005 objectives.
Company’s financial statements.
The cost of this program is estimated to be $2.1 billion
after tax over a six year period. Based on the nature
COMMODITY PRICE EXPOSURE
and duration of the Organization 2005 program, costs
Raw materials used by the Company are subject to price incurred in future years are subject to varying degrees of
volatility caused by weather, supply conditions, political estimation for key assumptions, such as normal
and economic variables and other unpredictable factors. employee attrition levels, the actual timing of the execu-
The Company uses futures and options contracts, pri- tion of plans and other variables. The estimated cost
marily in food and beverage products, to manage the of the program has increased approximately $200 mil-
volatility related to certain of these exposures. Commodity lion after tax since its announcement, primarily due to
hedging activity is not material to the Company’s financial refinement of estimates associated with the legal and
statements. organizational restructuring of the Company and expan-
sion of certain manufacturing consolidation plans.
ORGANIZATION 2005
Significant savings are expected to begin accruing next
As also discussed in Note 2 to the consolidated finan- fiscal year, reaching going annual levels of approximately
cial statements, effective July 1, 1999, the Company $1.2 billion after tax by fiscal 2004. This annual savings
reorganized its operations, moving from a geographic estimate has increased by approximately $300 million
structure to product-based Global Business Units. since announcement of the program, primarily due to
the savings associated with the legal and organiza-
This Organization 2005 program is designed to realign the
tional restructuring, which yields substantial tax and
organizational structure, work processes and culture to
other savings.
commercialize innovations faster and drive growth. This
involves Global Business Units streamlining decision
making to quickly flow innovation across categories and
geographies, Market Development Organizations getting
initiatives to market faster and more efficiently, and
Global Business Services leveraging scale to deliver ser-
vices at significantly lower cost.
24. FINANCIAL REVIEW (CONTINUED)
22
The Procter & Gamble Company and Subsidiaries
The Company recorded Organization 2005 charges of service. Severance costs related to voluntary separations
$814 million ($688 million after tax) and $481 million were charged to earnings when the employee accepted
($385 million after tax) in 2000 and 1999, respectively. the offer and were reflected in cost of products sold for
These charges were recorded in the Corporate segment manufacturing employees and in marketing, research and
for management and external reporting purposes, although administrative expense for all other employees.
they affected substantially all business units. Savings for
The streamlined work processes and manufacturing
the current year were approximately $65 million after tax,
consolidations under Organization 2005 are expected
with no individual business unit significantly impacted.
to affect approximately 15,000 jobs over six years (fiscal
Estimated costs for fiscal 2001 are $750 million ($550 mil-
1999 through 2004). The majority of the remaining
lion after tax). The balance of the charges are not expected
separation costs are expected to occur by 2002, although
to materially affect any single year, and savings are
additional costs will continue throughout the program.
expected to offset the charges.
Net enrollment is expected to decline by less than the
Costs under Organization 2005 were related primarily to total separations, as terminations will be partially offset
separation and relocation of employees as well as stream- through increased enrollment at remaining sites and
lining manufacturing facilities, including consolidations, acquisition impacts.
closures and standardization projects. Certain other costs
Asset write-downs were $64 million ($43 million after
directly related to Organization 2005 also were included.
tax) in 2000 and $217 million ($142 million after tax) in
The non-cash costs of the program primarily were related 1999. The 2000 charges related to assets held for sale or
to manufacturing consolidations and asset write-downs. disposal and represented excess capacity that is in the
These accounted for 62% and 88% of charges in 2000 process of being removed from service. Such assets were
and 1999, respectively. Approximately 30% of future written down to the lower of their current carrying basis
charges are expected to be non-cash. Cash requirements of or net amounts expected to be realized upon disposal. In
the program, including capital spending requirements, the prior year, the charges primarily related to manu-
will be met through normal operating cash flow. facturing assets that were expected to operate at levels
significantly below their capacity because of a shift in
Approximately 45% of the plant and production module
global strategy enabled by Organization 2005, as well as
closings have occurred to date, with the majority of the
demand trends below expectations. Because the expected
remainder expected to be completed in fiscal 2001.
cash flows of those assets were estimated to be less
Employee separation charges were $153 million ($102 mil- than their carrying values, the assets were written down
lion after tax) and $45 million ($29 million after tax) in to estimated fair value as determined using discounted
2000 and 1999, respectively. These costs related to sever- cash flows. The remainder of the 1999 charges related to
ance packages for approximately 2,800 people in 2000 assets held for sale. Asset write-downs will not have a
and 400 people in 1999, with all geographies and busi- significant impact on future depreciation charges.
nesses impacted. The predominantly voluntary packages
were formula driven, based on salary levels and past
25. FINANCIAL REVIEW (CONTINUED) 23
The Procter & Gamble Company and Subsidiaries
Charges for accelerated depreciation were $386 mil- FORWARD-LOOKING STATEMENT
lion ($335 million after tax) in 2000 and $208 million
The Company has made and will make certain forward-
($206 million after tax) in 1999. The charges for accel-
looking statements in the Annual Report and in other
erated depreciation related to long-lived assets that will
contexts relating to volume growth, increases in market
be taken out of service prior to the end of their normal
shares, Organization 2005, financial goals and cost
service period due to manufacturing consolidations,
reduction, among others.
technology standardization and plant closures. The
These forward-looking statements are based on assump-
Company has shortened the estimated useful lives of
tions and estimates regarding competitive activity,
such assets, resulting in an acceleration of deprecia-
pricing, product introductions, economic conditions, tech-
tion. The underlying plant closures and consolidations
nological innovation, currency movements, governmental
will impact substantially all businesses. Accelerated
action and the development of certain markets. Among
depreciation charges are expected to be approximately
the key factors necessary to achieve the Company’s goals
$250 million in 2001. Both asset write-downs and accel-
are: (1) the successful implementation of Organization
erated depreciation are charged to cost of products sold.
2005, including achievement of expected cost and tax
Other costs were $211 million ($208 million after tax)
savings and successful management of organizational
and $11 million ($8 million after tax) in 2000 and 1999,
and work process restructuring; (2) the ability to achieve
respectively. These costs were incurred as a direct result
business plans, including volume growth and pricing plans,
of Organization 2005 and were expensed as incurred.
despite high levels of competitive activity; (3) the ability
The nature of the costs included training, relocation,
to maintain key customer relationships; (4) the achieve-
tax and other incremental costs relating to establish-
ment of growth in significant developing markets such as
ment of Global Business Services and the new legal and
China, Mexico, the Southern Cone of Latin America and
organizational structure of Organization 2005. Such
the countries of Central and Eastern Europe; (5) the abil-
before-tax costs were primarily charged to marketing,
ity to successfully manage regulatory, tax and legal
research and administrative expense and were included
matters, including resolution of pending matters within
in the Corporate segment. Charges for other costs are
current estimates; (6) the successful execution of planned
expected to be approximately $225 million in 2001.
minor brand divestitures; (7) the ability to successfully
implement cost improvement plans in manufacturing and
Most charges under Organization 2005 are paid shortly
overhead areas; and (8) the ability to successfully manage
after accrual or charged directly to the related assets.
currency, interest rate and certain commodity cost expo-
The reserve balances at June 30, 2000 and 1999 were
sures. If the Company’s assumptions and estimates are
$88 million and $44 million, respectively.
incorrect or do not come to fruition, or if the Company
does not achieve all of these key factors, then the
Company’s actual performance could vary materially from
the forward-looking statements made herein.
26. RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
24
The Procter & Gamble Company and Subsidiaries
Consolidated financial statements and financial information included in this report are the responsibility of Company management. This
includes preparing the statements in accordance with accounting principles generally accepted in the United States and necessarily
includes estimates based on management’s best judgments.
To help insure the accuracy and integrity of Company financial data, management maintains internal controls designed to provide
reasonable assurance that transactions are executed as authorized and accurately recorded and that assets are properly safeguarded.
These controls are monitored by an ongoing program of internal audits. These audits are supplemented by a self-assessment program that
enables individual organizations to evaluate the effectiveness of their controls. Careful selection of employees and appropriate divisions
of responsibility are designed to achieve control objectives. The Company’s “Worldwide Business Conduct Manual” sets forth manage-
ment’s commitment to conduct its business affairs with the highest ethical standards.
Deloitte & Touche, independent public accountants, have audited and reported on the Company’s consolidated financial
statements. Their audits were performed in accordance with auditing standards generally accepted in the United States of America.
The Board of Directors, acting through its Audit Committee composed entirely of outside directors, oversees the adequacy of
internal controls. The Audit Committee meets periodically with representatives of Deloitte & Touche and internal financial management
to review internal control, auditing and financial reporting matters. The independent auditors and the internal auditors also have full and
free access to meet privately with the Audit Committee.
John E. Pepper A.G. Lafley Clayton C. Daley Jr.
Chairman of the Board President and Chief Executive Chief Financial Officer
INDEPENDENT AUDITORS’ REPORT
250 East Fifth Street
Cincinnati, Ohio 45202
To the Board of Directors and Shareholders of The Procter & Gamble Company:
We have audited the accompanying consolidated balance sheets of The Procter & Gamble Company and subsidiaries as of June 30, 2000
and 1999 and the related consolidated statements of earnings, shareholders’ equity and cash flows for each of the three years in the period
ended June 30, 2000. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
the Company at June 30, 2000 and 1999 and the results of its operations and cash flows for each of the three years in the period ended
June 30, 2000, in conformity with accounting principles generally accepted in the United States of America.
August 1, 2000
27. CONSOLIDATED STATEMENTS OF EARNINGS 25
The Procter & Gamble Company and Subsidiaries
Amounts in millions except per share amounts Years ended June 30
2000 1999 1998
$39,951 $38,125 $37,154
Net Sales
Cost of products sold 21,514 21,027 20,896
Marketing, research and administrative expense 12,483 10,845 10,203
5,954 6,253 6,055
Operating Income
Interest expense 722 650 548
Other income, net 304 235 201
5,536 5,838 5,708
Earnings Before Income Taxes
Income taxes 1,994 2,075 1,928
$ 3,542 $ 3,763 $ 3,780
Earnings ( 1)
Net
$ 2.61 $ 2.75 $ 2.74
Basic Net Earnings Per Common Share ( 1)
$ 2.47 $ 2.59 $ 2.56
Diluted Net Earnings Per Common Share ( 1)
$ 1.28 $ 1.14 $ 1.01
Dividends Per Common Share
(1) Net
earnings include an after-tax charge for Organization 2005 of $688 in 2000 and $385 in 1999. Basic and diluted
net earnings per share include Organization 2005 charges of $.52 and $.48 in 2000 and $.29 and $.26 in 1999, respectively.
See accompanying Notes to Consolidated Financial Statements.