Procter & Gamble Plans to Restructure Brands

Procter & Gamble Co., the world’s No. 2 household products company and largest advertiser, said it will reorganize its business along product lines, rather than geographical regions, to boost sales and bring new products to markets faster.

The maker of Tide detergent, Crest toothpaste and Pampers diapers disclosed the plan in its annual report. The change is meant to help P&G; meet its goal of doubling its business in 10 years, Chief Executive John E. Pepper and President Durk I. Jager said in a letter to shareholders.

P&G; already has been focusing on its well-known brands such as Charmin tissue and Bounty towels that it can sell globally. About half of P&G;’s sales come from outside the U.S.

The stock has fallen 15% from a high of $94 in July on concerns that the slumping economies in Asia, the rising dollar and competition could crimp profit growth in the first half of the year.

The new structure calls for senior executives to have global responsibility for a product category. Currently, four executive vice presidents oversee operations for the company’s various international regions, said spokeswoman Wendy Jacques.

P&G; will also streamline its corporate staff, the letter said. That could mean job cuts, Jacques said. Details will be released “in the not too distant future,” she said.

“This is all about driving growth, not about cutting costs,” Jacques said.

P&G;’s last major restructuring was in July 1993, when it cut 13,000 jobs and closed 30 plants.

The company’s revenue rose just 4% to $37.2 billion in the fiscal year ended June 30.

“These results are good, yet we can and must do better,” Pepper and Jager said in the letter, adding that they “are not satisfied” with the sales and volume growth.

P&G; has said it still expects to meet earnings expectations for the second half of the year.

Shares of Cincinnati-based P&G; fell 19 cents to close at $78.81 on the New York Stock Exchange.