Wednesday 29 October 2014

P&G TO Exit from Duracell Business

Procter & Gamble announced exiting from the Duracell battery business as the consumer products company reported a mixed bag of quarterly results Friday morning. P&G has held the 50-year-old battery brand since it acquired Gillette in 2005. (Gillette acquired Duracell in 1996.)

P&G said that it does not know what form its exit of the Duracell business will take — i.e, whether it will be a split-off, spin-off, divestiture or some other scenario. The company’s current preference is a split-off in which P&G shareholders would be given the option of exchanging their P&G shares for shares in the newly formed Duracell Company.


P&G reported $20.8 billion in first quarter fiscal 2015 revenue, a figure that is essentially flat compared to the year-ago period and in line with the analyst consensus. Net income dropped 34 per cent to $1.99 billion, resulting in earnings of 69 cents per share. Excluding one-time items like restructuring costs and expenses associated with “remeasuring” the company’s Venezuelan balance sheet, P&G recorded $1.07 in earnings per share, a penny below the Street consensus.

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