he Procter & Gamble Company
) recently announced the appointment of Terry Lundgren to its
board of directors. Terry Lundgren previously served as the chief
executive officer (CEO) of departmental store chain
Lundgren, aged 60, is set to replace P&G's current
director Johnathan Rodgers who will retire in October this year
and decided against contesting for the election scheduled in the
same month. In addition to being a CEO, Lundgren was also the
chairman and president of Macy's. Lundgren will be a member of
the Governance & Public Responsibility and Innovation &
Technology committees of the board.
Rodgers, aged 66, was a member of the same committee and has
been a director of P&G since 2011, being one of the
longest-serving directors of the company. He will continue to
serve the company till October.
P&G carries a Zacks Rank #3 (short-term Hold) Over the
long term, the company has a Neutral recommendation.
P&G's first quarter earnings were significantly better
than the Zacks Consensus Estimate and also improved on a
year-over-year basis, driven by organic sales growth, lower
commodity cost headwinds and improved productivity. Though net
sales declined, they were at the favorable end of management
Slowdown in developed nations and commodity cost increases
resulted in a series of disappointing earnings results and
guidance cuts for P&G. However, the fourth quarter 2012 and
first quarter 2013 results were much better than past quarters.
Overall, we are encouraged by P&G's strong brand recognition,
diversified portfolio, rapid growth in developing nations,
impressive product development capabilities and marketing
Fiscal 2012 had been a tough year for P&G, but the company
has laid out plans to improve results in developed markets while
maintaining momentum in the developing nations. Moreover, the
company will increase focus on the most profitable business and
on its biggest innovations, and further accelerate cost savings.
We would prefer to wait and see if the plan is effectively
MACYS INC (M): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis
To read this article on Zacks.com click here.