Procter & Gamble 1q10 press release

CINCINNATI, Oct. 29, 2009 - The Procter & Gamble Company (NYSE:PG) reported net
sales of $19.8 billion for the July - September quarter which exceeded the Company’s guidance.
Organic sales growth was up two percent versus a guidance range of flat to minus three percent on better than expected results across most business segments. Diluted net earnings per share
increased three percent to $1.06, above the Company’s guidance range of $0.95 to $1.00. The
Company raised its outlook for the October - December quarter and fiscal 2010 organic sales
growth citing modestly higher expectation for market growth. The Company also increased the low end of its fiscal year guidance range by $0.03 per share to reflect the higher top-line growth
projection.

=> Procter & Gamble's EPS beat Wall Street analysts' estimation by 7 cents.

“Our September quarter results give us encouragement we are making the right choices to
grow market share profitably,” said President and Chief Executive Officer Bob McDonald. “We
are investing in innovation, expanding our portfolio and improving consumer value to serve more consumers, in more parts of the world, more completely. We are driving simplification and
improving execution while leveraging scale to create cost efficiencies that help fund these
investments and accelerate growth.”

Executive Summary
• Net sales for the quarter were $19.8 billion, a decrease of six percent that was primarily due
to unfavorable foreign exchange impacts as the U.S. dollar remained above prior year levels.
The company had previously guided to a net sales decrease of seven to ten percent.
• Organic sales, which exclude the impacts of acquisitions, divestitures and foreign exchange,
increased two percent.
• Diluted net earnings per share increased three percent to $1.06 for the July - September
quarter.
• Operating margin increased 160 basis points for the quarter behind a 290 basis point
improvement in gross margin, partially offset by higher selling, general and administrative
(SG&A) expenses.
• Operating cash flow was $4.6 billion for the first fiscal quarter. Free cash flow, which is
operating cash flow less capital spending, was $4.0 billion, an all-time record and over 120
percent of net earnings excluding the gain on the sale of Actonel in Japan.

=> Procter & Gamble sucessfully boost up organic sales by 2% thanks to the price cut strategy. It is also good to see the operating margin improved. As US$ fall back, we should see better results in the coming quarters.