Monday, October 27, 2014

P&G intends to separate or sell Duracell

The writedown of $ 932 million in relation to the operations of the American batteries Procter Gamble & (P&G) announced on Friday in its first-quarter fiscal balance is also a preparation for the sale of Duracell. The company reported that, after selling the piece in a joint venture in the area in China, aims to halve the Duracell in a new company with the same name.
"We appreciate enormously the contribution of Duracell's employees [the Group]. Since we bought the business in 2005, the position of the brand was strengthened and remained as a global leader ", commented in a statement, the President of the manufacturer of consumer goods, A.G. Lafley.
If the Division into a new company cannot be held, with the exchange of shares between the current P&G investors, another way would be to divest activities to third parties. For the company, what matters is that the generated value in this transaction is as much as possible.
The expectation is that any decision regarding how the Duracell will no longer be part of the group to be taken in the second half of next year. In addition to help give more visibility to the brand, the company wants to be sure to dilute their separation consolidated results in the long run.
In the first fiscal quarter, ended in September, the net profits of the P&G fell 34 percent in the same period of the previous year, to $ 1.99 billion. The big culprit was the tax write-off held at Duracell. At the same time, the net revenue remained practically stable, at $ 20,79 billion. However, the company saw advance General and administrative expenses in 3%, to $ 6.33 billion.
Valor Economico
Related products
News Item translated automatically
Click HERE to see original
Other news
DATAMARK LTDA. © Copyright 1998-2021 ®All rights reserved.Av. Brig. Faria Lima,1993 third floor 01452-001 São Paulo/SP