Purchasing - November 04, 2004
Features
P&G boosts leverage
Whenever buyers at Cincinnati-based Procter & Gamble reduce annual costs by 5%, corporate profits jump more than 20%. And net earnings at the consumer product giant jumped 25% in the last fiscal year despite intense pressure on pricing of its own products such as Pampers, Tide and Crest, coupled with escalating costs for transportation and raw materials, particularly those tied to oil.
Whenever buyers at Cincinnati-based Procter & Gamble reduce annual costs by 5%, corporate profits jump more than 20%. And net earnings at the consumer product giant jumped 25% in the last fiscal year despite intense pressure on pricing of its own products such as Pampers, Tide and Crest, coupled with escalating costs for transportation and raw materials, particularly those tied to oil.
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