Tariff pressure makes p&g overwhelmed: diapers and so on all rise in price in North America

Eastern time on Tuesday, the consumer products giant procter &gamble ( P& G) Announced that have increased across the board for some famous brand products of the company. P&g said, have set up the north American market pampers ( 帮宝适) Prices increase %, Bounty, said, Puffs the three paper towel brand will sell for an average raise %. Company expects the price moves in the second half of the year to reflect the effect of early next year. P&g is also considering whether to markets outside the United States and other brand products prices, range may be expanded to the shaving cream, toothpaste, etc. Procter & gamble have sustained income growth, trade war led to rising raw material costs, such as import pulp increased freight costs and energy expenditure at the same time. The price on behalf of p&g made a strategic adjustment. Earlier, in response to the fierce competition and weak demand and fight for market share, procter & gamble for many years in the price or provide a big discount. And, more importantly, as an industry leader, procter & gamble price increases tend to push the whole industry prices higher. As a result, enterprise's price behavior will pass on to consumers, which would push up inflation. And higher inflation is the key factor markets expect the fed to raise interest rates further. P&g chief executive David Taylor said, consumers need to bear some cost to them, 'the industry must be to find a way to compensate for rising input costs. 'Chief financial officer Jon Moeller admitted that prices can indeed bring uncertainty, could hit the market demand and sales, influence degree depends on the other companies on pricing. He is also expected to trade tariffs and geopolitical tensions, and competition, cost and currency exchange rate pressure or in the next year continue to affect the company's performance. In some ways, p&g is in a bet on the U. S. economy will maintain growth, betting on the market have the ability to digest the prices of consumer goods. Fortunately, the Commerce Department said on Tuesday, according to data from the American consumers on household income and consumer spending is still growing steadily, in the second quarter GDP growth significantly speed up even to the years. %。 Procter & gamble price increase is only the entity industry cope with the latest case of a trade war. Already have other commodities giant rise in price. Extensive use of aluminum to produce coke cans of Coca-Cola announced rises before, home appliance maker whirlpool recently also took out the same measures. Poor performance on the same day, according to results released as of the date of the fiscal year, p&g did not achieve the original performance, created through its existing business organic sales growth %, only far lower than a year ago set % growth targets. Procter & gamble's quarterly net profit year-on-year decline in % to. $% diluted EPS plummeted, to. The dollar. This is mainly from debt restructuring costs and debt related fees. EPS of procter & gamble in the core. The dollar, market forecast. The dollar. Net sales dollars, the market forecast. Million dollars. Procter & gamble % - core EPS is expected growth %, the lower the previous forecast this ( % - - - - - - %) Is lower. Analysts had expected procter & gamble's performance may be disappointing. Month, the us investment bank Jefferies Group LLC, procter & gamble to 'hold' rating from 'buy', target price from us dollars to us dollars, the company is expected to next year's income will be less than expected. This is the bank cut p&g target price, at least for the second time this year the end of the month they will target price cut to $$. Jefferies said at the time, will be subject to the profitability of the procter & gamble's rising commodity costs, slower growth, emerging market volatility, the us retail market difficulties, a stronger dollar and the influence of factors such as pricing challenge. Procter & gamble the average price of key commodities have risen over the past year %, and the company don't have the ability to a higher price on to their customers. As pricing environment becomes more difficult, the company is expected in the release of negative growth for the first time in more than ten years. Bernstein analyst Ali Dibadj wrote also seem to be cautious stance on the effects of procter & gamble the rise in price. The financial times quoted him as saying, compared with the last time the commodities cycle, p&g will now the pressure of the rising costs through price increases on to their customers, the effect will be in a longer time to emerge. 'It's because their brand influence is less. 'In addition to part of the product price, p&g has also taken other measures to positive change. Late, procter & gamble commitment in deployment of at least $years of merger and acquisition and share buybacks. Expects the restructuring actions will lead to cost savings - this year Thousands of dollars, is expected to save in years. The cost of us $. Results and measures to increase after released, p&g shares changed little. However, since this year the stock has fallen to about %. Editor: viko