Procter & Gamble says it has exceeded FY14 non-manufacturing reduction goals Says the strongest brands and positioning is in the U.S. The company said significant upgrades are coming in Fabric Care products. It expects cost of goods savings will increase to $1.6B this year. Emerging markets are also expected expand and will become a significant growth driver for the company in years to come. Manufacturing start up costs will annualize in 2H14. The company will annualize the Venezuela impact until mid-February in Q3. Expects 90% free cash flow productivity as well as CapEx spending in the range of 4%-5% of sales and share repurchase in the range of $5B-$7B. The negative foreign exchange effect and cost savings are expected to drive 2H14 growth. Proctor & Gamble says it continues to operate in a "volatile environment with uncertainty in foreign exchange, some deceleration in the market growth growth rates and a rapidly developing policy environment." Comments taken from Q2 earnings conference call.
Coty downgraded to Neutral from Buy at Citi Citi downgraded Coty (COTY) to Neutral after shares rallied on a New York Post report saying the company is in talks to acquire Procter & Gamble's (PG) beauty business for $12B. Citi sees potential challenges with the deal and notes the stock is up 65% since its upgrade in January. The firm raised its price target for shares to $32 from $29.