Procter & Gamble Co. (PG) reported that it has spent $996,497 during the third quarter 2011 on issues related to international trade, foreign relations, consumer safety, tax code and other issues. Lobbying charges increased 30% from the previous quarter of $765,000, while it shrunk 3% from the $1.03 million incurred in third quarter of 2010.
According to the filing with the House clerk’s office on October 20, P&G lobbied the Congress, the Consumer Product Safety Commission, the Environmental Protection Agencies and several other agencies.
In addition, the company lobbied the Patent and Trademark Office and opposed on trade barrier issues as the company is looking for expansion opportunities globally.
In another news flow, P&G inked a deal with the fast-food chain owners Panda Express, to open 200 franchised dry cleaning chains in the next five years. It will be known as Panda Dry Cleaning. The plans also disclosed that Panda will open five more Tide cleaners next year.
According to the Los Angeles Times reports, Panda will also acquire Summit Cleaners of Colorado Springs to bring in trainers for its new dry cleaning venture.
P&G, which sells household and personal products like Tide laundry detergent, Duracell batteries, Pampers and Crest, reported modest results for the first quarter of 2012, with net earnings from continuing operations inching up 1.0% year over year to $1.03 a share, which were in line with the Zacks Consensus Estimate. Profits were driven by efforts to enhance productivity and cost-saving initiatives.
P&G forecasts second-quarter 2012 net earnings from continuing operations and core earnings to be in the range of $1.05 to $1.11 per share, a decrease of 7%-2% compared to core earnings of $1.13 in the corresponding prior-year quarter.
The guidance implies that P&G will continue to engage in several innovations and invest in various marketing programs. The Zacks Consensus Estimate for the second quarter is expected to be $1.08 per share.
For 2012, diluted net earnings per share from continuing operations and Core EPS are expected to increase 3%-6% from the comparable period and will be in the range of $4.17 to $4.33. The Zacks Consensus Estimate for fiscal 2012 is $4.24.
Currently, we prefer to be Neutral on Procter & Gamble’s stock. Furthermore, the company holds a Zacks #3 Rank, which translates into a short-term Hold rating.
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