CEO offers reassurances to P&G shareholders

CINCINNATI — The chief executive of the Procter & Gamble Co. reassured shareholders Tuesday that the company is well-positioned to weather the nation's economic storm.

A.G. Lafley, chairman and CEO of the consumer products maker, cited P&G's record of years of steady earnings and sales growth and said that even with the current market turmoil they can count on P&G for the long haul because of its strong fundamentals.

"While the economic environment remains volatile and uncertain, I am confident that P&G can and will continue to prosper over the long term," Lafley said, adding: "P&G should continue to grow reliably over the long term."

Procter & Gamble broke ground in May for a paper-products plant near Bear River in Box Elder County. The 1 million-square-foot plant on a 720-acre site will initially employ 300 people when it begins producing Bounty paper towels and Charmin toilet paper in late 2010.

Lafley said P&G has been increasing productivity, controlling costs and adding innovations to a product portfolio that includes 24 brands with annual sales of $1 billion or more and 20 others with sales between $500 million and $1 billion.

"They are built to grow through any economic cycle," he said.

Lafley said the company has "a laser focus" on offering value to budget-strapped consumers. P&G played a commercial that said Tide laundry detergents clean more with less water than competitors and another touting Charmin toilet paper for savings because it's more absorbent than other bathroom tissues.

The stock was on a run of record highs this time last year that took it to $75.18 in December. It had fallen last week as low as $59.56, but has partially bounced back this week with the broader market rally. Shares closed Tuesday at $64.10, up 81 cents or 1.3 percent.