P&G Delivers Second Quarter EPS and Organic Sales in Line with Ex...(les by about five percent. The netimpac...),Health

The Company also stated that it is comfortable with analysts' current consensus earnings per share estimate of $4.29. This approximates the mid- point of the Company's revised Fiscal 2009 guidance range of $4.20 to $4.35 per share. The Company modified the guidance range to reflect the high level of market volatility and uncertainty that exists today. Operating margin, which includes the impact of incremental Folgers-related restructuring charges, is expected to be consistent with the prior fiscal year. The Company's tax rate on continuing operations is expected to be between 27 and 28 percent.

For the January - March quarter, organic sales are expected to grow two to five percent. The combination of pricing and product mix is expected to contribute between five and seven percent to sales growth. Organic volume is expected to decline two to three percent. Foreign exchange is estimated to reduce net sales by high-single-digits, and the net impact of acquisitions and divestitures is expected to be neutral to net sales growth for the quarter. Total sales are expected to be down two to seven percent.

The Company expects earnings per share to be in the range of $0.78 to $0.86 for the quarter, including incremental Folgers-related restructuring charges. Operating margin is expected to decline modestly, as Folgers-related restructuring charges, higher commodity costs and volume de-leveraging should be largely offset by productivity improvements and manufacturing cost savings programs.

Forward Looking Statements

All statements, other than statements of historical fact included in this release, are forward-looking statements, as that term is defined in the Private Securities Litigat
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