Proctor & Gamble is raising prices on a range of goods as higher commodity and freight costs are set to take a bite out of its profits.
The maker of Pampers diapers, Tide detergent and Crest toothpaste said Tuesday it has been raising prices on product lines including baby, family, home and fabric care. In the last few weeks, it has started telling retailers that it will boost prices on more categories including grooming, skin care and oral care.
“The degree and timing of these moves are very specific to the category, brand and sometimes the product form within a brand,” Chief Financial Officer Andre Schulten said during a call to discuss quarterly results. “This is not a one-size-fits-all approach.”
And though it's still early, the company has yet to see “notable changes” in consumer behavior in reaction to the higher prices, he said.
Schulten said the Cincinnati company now expects a commodity hit of $2.1 billion in fiscal 2022. That’s up from an estimated $1.8 billion in July.
P&G also sees higher transportation costs, reflecting in part a shortage of truck drivers and soaring diesel fuel costs. In July, the company estimated that would cost an extra $100 million this fiscal year. Tuesday, the consumer goods maker doubled that estimate to $200 million.
Combined, the $2.3 billion in higher costs will lower fiscal 2022 earnings by about 90 cents per share.
Last week the Labor Department reported that wholesale prices rose a record 8.6% in September compared to a year ago, the largest advance since the 12-month change was first calculated in 2010. The jump in inflation this year reflects higher prices for food and energy. Core inflation at the wholesale level, excluding volatile energy and food, was up 0.2% in September from August and was 6.8% higher over the past 12 months.
P&G maintained its annual guidance and doesn’t believe that inflation is here to stay, calling it a “temporary bottom line rough patch to grow through.”
"When opportunities allow, we will close a couple of price increases with new product innovations, adding value for consumers along the way," Schulten said.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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