Procter & Gamble (PG) last week reported better than expected results for the first quarter of fiscal year 2013. These results can be viewed as the beginning of a positive momentum in the company's performance. We expect the company to deliver improved results in upcoming quarters as well. Recent quarterly results helped relieve the pressure on the company's CEO who has been criticized for the company's weak financial performance in recent years. However, Warren Buffett's Berkshire Hathaway Inc. (BRK.A) has sold some of its holdings in PG. Buffett has stated that he does not have the answer to the company's earnings woes.
Procter & Gamble is among the biggest multinationals of the world. PG has annual revenue of around $84 billion, out of which 38% is earned from emerging markets.
We believe the company has to keep on delivering performance improvements in the upcoming quarters if McDonald is to remain the CEO. PG has a strong business model. Coupled with its restructuring program, we believe the company will be able to improve upon its financial performance and margins in the future.
Source URL: http://seekingalpha.com/article/965881-p