Consumer Products Hit Birdie with Earnings
U.S. makers of consumer products ranging from bleach to golf balls issued an upbeat earnings guidance, led by Procter & Gamble Co., which said it would return to double-digit earnings growth sooner than expected, reports Reuters.
The improved forecasts from Dial soap, Fortune Brands’ Jim Beam bourbon, and Titleist golf balls are the latest sign that these companies are succeeding in efforts to market their products more aggressively and cut costs. At the same time, the U.S. economy is rebounding earlier than many executives thought it would, helping generate more sales.
Investors are taking notice, and many stocks in the sector are trading at levels not seen in a year or more. Since early December, the Standard & Poor’s Household Products Index has risen more than 13 percent.
Moderator Comment: What lessons have CPG companies
and retailers learned from the latest economic downturn? [George
Anderson – Moderator]