www.prospect.org By Jeff Faux Issue Date: 2.1.03

Print Friendly | Email Article Two political movements representing distinct visions of the global economy will hold their annual conventions the last week of January. The World Economic Forum -- an organization of some 1,000 multinational corporations -- will meet in Davos, a picture book ski resort in the Swiss Alps. The forum was organized 30 years ago to provide a discreet hideaway where businessmen-without-borders could socialize and strategize with one another and selected heads of state. Over the years, Davos has become less an exclusive retreat to do business and more a quasi-public conference on how to make the world safe for multinational capital. This year, more than 500 government officials, media pundits, leaders of churches and nongovernmental organizations (NGOs) such as the Red Cross, and "leading thinkers" will share cocktails and ideas with the captains of global capitalism.

Meanwhile, some 7,000 miles away, a much larger group of environmental, labor and other social activists will gather in sunny Porto Alegre, a bustling commercial city in the flat, cattle-raising landscape of southeastern Brazil. The World Social Forum was first organized in 2000 as a counterpoint to the World Economic Forum. Porto Alegre was chosen because it is in the Third World and because the local government -- run by Brazil's Workers' Party, whose leader, known as Lula, has just been elected president -- offered to host it. Two years ago, 4,000 registered delegates showed up, and another 16,000 people came to listen to the discussions. Last year there were 14,000 registrants and 35,000 observers. For this year's conference, organizers had 24,000 registrants by Dec. 1.

Although the party of Porto Alegre has larger conventions, the party of Davos remains in power almost everywhere. Its neoliberal model, which makes freedom to invest the supreme political value, has been for 20 years the agenda of the International Monetary Fund, the World Bank, the World Trade Organization, the U.S. Department of the Treasury and other governing institutions of the global marketplace.

But inside the cozy chalets of Davos, the triumphalism of the past is likely to be muted this year. The world's economy is entering the third year of economic slowdown, and there's no consensus among the multinational elites on how to revive it. Japan remains in the grip of its deflationary spiral, tight-money central bankers are choking Europe's growth and much of the developing world is staggering under unpayable debts. The prospect of war in Iraq and at least a short-term unsettling of global oil prices add to the jitters. Doubts about the Bush administration's competence notwithstanding, Davos looks to the United States for salvation -- hoping that U.S. consumers will continue to defy the laws of economic gravity by spending more than they earn in order to absorb the rest of the world's excess production.

The uneasiness among the Davos constituency reflects more than business-cycle anxiety. Despite the rapid U.S. expansion of the 1990s, the neoliberal model has failed to deliver on its promises to accelerate Third World growth, improve the distribution of income, and usher in an era of freedom and democracy. Indeed, almost half of the world's 50 poorest countries saw a drop in their per capita incomes over the decade.

Misgivings can now be found even at U.S. universities, where thousands of foreign economics and business students have been trained in neoliberal thought. As The Wall Street Journal recently observed, "After the economic and financial distress that has hit Mexico, Asia, Russia, Argentina and Brazil in the past decade, the current generation [of foreign students] is absorbing a sobering new message about globalization and the trade-offs and turmoil that can come with it."

The response at corporate Davos has been to blame the customer, not the product. The theme of this year's conference is that ordinary people are plagued by a lack of trust in the world's companies, governments and other established institutions. A press release warns that unless trust is somehow restored, the world could see "greater system instability and a growing mandate for NGOs and new political parties."

This global distrust of established institutions that brings heartburn to the party of Davos brings hope to the party of Porto Alegre. It is a sign that the world's ordinary people are waking up to the failures of global laissez-faire. Davos looks to George W. Bush; Porto Alegre looks to Lula. The victory of Lula -- an ex-labor leader jailed under the 20-year military dictatorship with which many of the Davos member companies were happy to do business -- is Porto Alegre's answer to the establishment media that dismiss their protest movement as kooky and without clout.

Lula's victory certainly helps make the case for the Porto Alegre theme, "Another World Is Possible." But the vision of that other world is still incomplete. There is no consensus among the many disparate groups that fill the hundreds of workshops and seminars of their convention. The emphasis on self-sufficiency, decentralization and autonomy for indigenous tribes does not necessarily resonate with the majority of the world's impoverished people, who see their problem as lack of access to First World goods and services.

In Latin America, for example, where the neoliberal model is widely discredited, populist leaders remain intimidated by the threat of a capital strike from the world's financial markets. After a year of financial meltdown, Argentina is still on IMF life supports. In Venezuela, populist President Hugo Chavez is being pushed to the wall by a shutdown of the oil industry. Even in Brazil, Lula has had to reassure Wall Street by appointing conservatives to run the central bank and other economic ministries.

Indeed, the shadow of a third model -- China -- falls over both Davos and Porto Alegre. For Davos, China is a multinational corporation's dream: practically infinite sources of cheap, docile labor and a government that will use force to keep it that way. Yet China's amalgam of private greed and state power threatens to create corporate competitors whose market clout even the U.S. oil and military industrial complexes might not be able to match.

The threat to the party of Porto Alegre is that the socially repressive Chinese model -- what has been called Market Leninism -- may turn out to be an attractive alternative for the desperate Third World, resulting in a future of more centralization, more environmental degradation and much less democracy. History's sun may well be setting on Davos, but it has not yet risen on Porto Alegre.

www.news24.com 28/01/2003 14:13  - (SA)  

London - Oil prices climbed on Tuesday on rising worries about the threat to Middle East supplies of a war in Iraq after Baghdad said it had not ruled out an attack against its oil-rich neighbour Kuwait.

Traders were also nervous ahead of a major speech by US President George W Bush in which he was expected to brace Americans for possible war with Iraq, despite signs of opposition from fellow members of the UN Security Council.

The price of benchmark Brent North Sea crude oil for March firmed US28c to R30.14 per barrel in early deals.

"Prices have rallied overnight following comments by Iraqi officials that they might attack Kuwait," said Lawrence Eagles, analyst at brokers GNI-Man Financial.

Iraqi Deputy Prime Minister Tareq Aziz said Kuwait "is a battlefield and American troops are in Kuwait and preparing themselves to attack Iraq".

"If there will be an attack from Kuwait, I cannot say that we will not retaliate. We will of course retaliate against the American troops wherever they start their aggression on Iraq," he told Canada's CBC television.

In New York, the light sweet crude March contract slumped 99c per barrel to $32.39 on Monday after a report by UN chief weapons inspector Hans Blix on Iraq fed hopes that war might be further away than had been feared.

Eagles said Blix had given a "slightly more negative-than-expected assessment of Iraq's co-operation", but added that traders were more concerned about clues on the time-scale for war.

"The key issue for the market is that the weapons inspectors will be given a few more weeks at least to carry out their tasks," he wrote in a note to clients.

Analysts say the threat of disruption to Iraqi oil comes as the market is already tight because of a strike in Venezuela that has severely disrupted the country's oil exports, though there have been recent signs of cracks in the walk-out.

If the market loses Iraq's oil output of about two million barrels per day while Venezuela's exports are crimped, analysts say the Opec oil cartel would struggle to make up the shortfall.

Members of the Organisation of Petroleum Exporting Countries agreed earlier this month to raise output by 1.5 million barrels per day from the start of February, but the move has so far failed to rein in prices significantly.

The United States has huge strategic petroleum reserves of about 600 million barrels, but has been reluctant to tap any of the crude despite calls from US oil majors for their release. - Sapa-AFP

new.stockwatch.com 2003-01-28 04:06 - News Release

CINCINNATI, Jan. 28 /PRNewswire-FirstCall/ -- The Procter & Gamble Company announced another period of strong business growth for the quarter ended Dec. 31, 2002. This is the fourth consecutive quarter of double-digit core earnings progress -- and attainment of long-term growth objectives.

For the quarter ended Dec. 31, 2002, unit volume grew eight percent over the prior year, behind double-digit growth in the health care and beauty care businesses, as well as very strong results in the baby and family care business. Excluding acquisitions and divestitures, unit volume increased seven percent. Reported net sales were $11.01 billion, up six percent versus year-ago, as strategic pricing investments and mix partially offset volume growth. The net foreign exchange impacts increased sales by one percent, reflecting the benefits of the Euro offset by Latin American devaluations.

"This was a strong quarter where we exceeded expectations despite a very challenging global economic and competitive environment," said AG Lafley, chairman, chief executive and president of P&G. "At the midpoint of our fiscal, we are well positioned to meet our growth goals for the year. We have the right strategies and we're making the necessary systemic interventions to sustain long-term top- and bottom-line growth objectives."

Net earnings for the quarter were $1.49 billion or $1.06 per share, up 14 percent versus year ago. Results included a $98 million after tax ($0.07 per share) restructuring charge related to the company's program to streamline its operations and business portfolio. This restructuring program charge for the quarter included employee separation costs of $54 million before tax and asset-related charges of $73 million before tax. Net earnings in the year-ago quarter were $1.30 billion or $0.93 per share, including a $146 million after tax ($0.10 per share) restructuring charge.

Core net earnings, which excludes restructuring charges, grew ten percent to $1.59 billion for the quarter. On a per share basis, core earnings grew ten percent to $1.13.

Key Financial Highlights * Core gross margin expanded 140 basis points; this excludes $84 million before tax in restructuring charges in the current quarter and $82 million before tax in the prior quarter. This marks another quarter of significant improvement, consistent with the strong results delivered over the preceding six quarters. This expansion primarily was driven by base business savings, which includes both systemic material price improvements and volume benefits. Restructuring program savings and improved margin mix also contributed. * Core Marketing Research and Administration (MR&A) as a percent of sales decreased about 40 basis points behind reductions in overhead costs partially offset by increased marketing spending, primarily in beauty care. This excludes $57 million before tax in restructuring charges in the current quarter and $121 million in the prior quarter, year-ago. * Core operating income growth was robust, up 16 percent, versus the prior year. Core net earnings increased ten percent despite non-operating gains from the divestiture of Comet in the base period. * The company's free cash flow before dividends for the second quarter was $1.98 billion, representing a $0.45 billion (+29%) increase over the same quarter year-ago. Free cash flow before dividends for the first half of the year was $3.71 billion, representing a $1.20 billion (+48%) increase over the same period last year. This increase was driven primarily by improved earnings growth. Business Segment Discussion:

The following provides additional perspective on the company's October - December results by business segment. Double-digit earnings progress was achieved by each business segment, despite the economic challenges in Latin America.

• Fabric and home care delivered strong results this quarter. Unit volume growth was broad-based, increasing eight percent on continued strength across most regions. Net sales were $3.10 billion, up five percent. Sales growth trailed volume due to pricing adjustments to restage the North American Cheer(R) brand. Also, negative mix in laundry was driven by a strong performance on mid-tier brands, growth in developing markets and larger sizes. Net earnings increased 18 percent to $514 million, driven by higher volumes and gross operating margin expansion from ongoing base business savings projects and lower material prices from systemic purchasing improvements. * Baby and family care quarterly volume, sales and earnings results also were very strong. Unit volume increased eight percent behind global strength in both baby care and family care, driven primarily by the Baby Stages of Development(R) initiative, Charmin(R) in Western Europe and Mexico and in U.S. Bounty(R). Net sales were $2.53 billion, up seven percent. Temporary pricing adjustments in response to competitive activity in both the baby and family care segments were partially offset by a positive one percent foreign exchange impact and positive mix behind strength in premium tier diapers. Earnings increased 21 percent to $276 million, reflecting volume growth and continued cost reductions. * Health care delivered excellent results this quarter with unit volume, sales and earnings all up double-digits. Unit volume increased 18 percent, driven by strong results in oral care and continued strength in pharmaceuticals. Net sales were $1.57 billion, up 17 percent including a one percent positive foreign exchange impact partially offset pricing investments. Crest Whitestrips(R) and Actonel(R) both delivered particularly strong volume and sales growth. Health care's net earnings increased 47 percent to $253 million, reflecting volume growth and positive mix toward high-margin products, partially offset by marketing investments to fuel future growth. * Beauty care posted strong results with double-digit volume, sales and earnings growth. Unit volume was up 14 percent. Excluding the impact of acquisitions and divestitures, volume was up six percent behind strength in hair care, on Pantene(R) and Head & Shoulders(R), and fine fragrances. Sales grew ten percent, including a positive one percent foreign exchange impact, reaching $3.00 billion. Sales trailed volume growth due to mix impacts driven by the Clairol business and the repositioning of the company's hair care portfolio of brands into multiple price tiers to deliver better consumer value. Net earnings were $507 million, up 15 percent behind the strong volume growth, which also funded increased marketing investments. * Snacks and beverages results were mixed. Unit volume was down one percent. Sales grew one percent to $881 million, including a positive two percent foreign exchange impact, as increased merchandising investments in beverages was offset by positive category mix. Net earnings grew 15 percent to $110 million behind positive mix and a continued focus on reducing costs. Third Quarter and Fiscal Year Estimates

For the March quarter, volume is expected to be up six to eight percent versus year-ago, behind continued core business strength. The net volume impact from acquisitions and divestitures in the quarter is expected to be a negative one percent due to the Jif/Crisco spin merge. Sales, excluding foreign exchange, are expected to be up in the mid single-digits versus year-ago. At current rates, foreign exchange is expected to have a positive two percent impact on the topline. As a result of the strong topline growth, core earnings per share is expected to grow eleven to thirteen percent, despite a difficult base period comparison.

For the fiscal year, sales growth is expected to be at the top end of the company's four to six percent target range. At current rates, foreign exchange is expected to have about a one percent positive impact on the topline. Earnings per share are expected to be in the twelve to thirteen percent range for the full fiscal year.

All statements, other than statements of historical fact included in this presentation, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. In addition to the risks and uncertainties noted in this release, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made. These include: (1) the achievement of expected cost and tax savings associated with changes in the company's organization structure; (2) the ability to achieve business plans, including growing volume profitably, despite high levels of competitive activity, especially with respect to the product categories and geographical markets in which the company has chosen to focus; (3) the ability to maintain key customer relationships; (4) the achievement of growth in significant developing markets such as China, Turkey, Mexico, the Southern Cone of Latin America, the countries of Central and Eastern Europe and the countries of Southeast Asia; (5) the ability to successfully manage regulatory, tax and legal matters, including resolution of pending matters within current estimates; (6) the ability to successfully implement, achieve and sustain cost improvement plans in manufacturing and overhead areas; (7) the ability to successfully manage currency (including currency issues in Latin America), interest rate and certain commodity cost exposures; and (8) the ability to manage the continued political and/or economic uncertainty in Latin America (including Venezuela) and the Middle East, as well as any political and/or economic uncertainty due to terrorist activities or war (including Korea). If the company's assumptions and estimates are incorrect or do not come to fruition, or if the company does not achieve all of these key factors, then the company's actual results might differ materially from the forward-looking statements made herein.

About Procter & Gamble

P&G is celebrating 165 years of providing trusted quality brands that make every day better for the world's consumers. We market nearly 300 brands -- including Pampers(R), Tide(R), Ariel(R), Always(R), Whisper(R), Pantene(R), Bounty(R), Pringles(R), Folgers(R), Charmin(R), Downy(R), Lenor(R), Iams(R), Crest(R), Actonel(R), Olay(R) and Clairol Nice 'n Easy(R) - in more than 160 countries around the world. The P&G community consists of nearly 102,000 employees working in almost 80 countries worldwide. Please visit www.pg.com for the latest news and in-depth information about P&G and its brands.

P&G will webcast its conference call on Tuesday, January 28, 2003, at 8:30 a.m. to review its second quarter 2002/03 results. The call will last approximately one hour. You may receive the web cast by going to our web site at: www.pg.com

We suggest you check in at least ten minutes in advance of the start time to complete the brief registration process and ensure you are set up to receive the webcast.

            THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
            (Amounts in Millions Except Per Share Amounts)
                  Consolidated Earnings Information


                                 Three Months Ended December 31, 2002

                              % Change  Earnings  % Change      % Change
                                Versus   Before    Versus         Versus
                          Net   Year    Income      Year    Net    Year
                         Sales   Ago     Taxes      Ago   Earnings  Ago

FABRIC & HOME CARE $3,102 5% $768 16% $514 18% BABY AND FAMILY CARE 2,526 7% 443 16% 276 21% BEAUTY CARE 2,997 10% 731 19% 507 15% HEALTH CARE 1,567 17% 374 42% 253 47% SNACKS AND BEVERAGES 881 1% 168 17% 110 15% TOTAL BUSINESS SEGMENT 11,073 8% 2,484 20% 1,660 21% CORPORATE (excluding restructuring costs) (77) n/a (173) n/a (68) n/a TOTAL COMPANY - CORE 10,996 6% 2,311 10% 1,592 10% RESTRUCTURING COSTS 9 n/a (132) n/a (98) n/a TOTAL COMPANY - REPORTED $11,005 6% $2,179 14% $1,494 15%

                                    Six Months Ended December 31, 2002

                              % Change  Earnings  % Change      % Change
                                Versus   Before    Versus         Versus
                          Net   Year    Income      Year    Net    Year
                         Sales   Ago     Taxes      Ago   Earnings  Ago

FABRIC & HOME CARE $6,234 7% $1,577 19% $1,061 20% BABY AND FAMILY CARE 4,952 6% 843 13% 517 15% BEAUTY CARE 6,120 18% 1,535 22% 1,055 19% HEALTH CARE 2,977 18% 649 37% 449 44% SNACKS AND BEVERAGES 1,703 2% 290 13% 201 18% TOTAL BUSINESS SEGMENT 21,986 11% 4,894 21% 3,283 21% CORPORATE (excluding restructuring costs) (189) n/a (294) n/a (114) n/a TOTAL COMPANY - CORE 21,797 8% 4,600 14% 3,169 14% RESTRUCTURING COSTS 4 n/a (283) n/a (211) n/a TOTAL COMPANY - REPORTED $21,801 8% $4,317 22% $2,958 23%

            THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
               OCTOBER-DECEMBER NET SALES INFORMATION
                   (Percent Change vs. Year Ago) **

                         Volume
                     With       Without                            Total
             Acquisitions/ Acquisitions/                    Total Impact
             Divestitures  Divestitures  FX Price Mix/Other Impact Ex-FX

FABRIC AND HOME CARE 8% 7% 0% -2% -1% 5% 5% BABY AND FAMILY CARE 8% 8% 1% -4% 2% 7% 6% BEAUTY CARE 14% 6% 1% -2% -3% 10% 9% HEALTH CARE 18% 19% 1% -2% 0% 17% 16% SNACKS AND BEVERAGES -1% -1% 2% -2% 2% 1% -1% TOTAL COMPANY (CORE) 8% 7% 1% -2% -1% 6% 5%

** These sales percentage changes are approximations based on quantitative formulas that are consistently applied.

          THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
          (Amounts in Millions Except Per Share Amounts)
                Consolidated Earnings Information

                                          OND QUARTER
                                                  W/O Restructuring Chgs
                          OND 02   OND 01  % CHG  OND 02   OND 01  % CHG

NET SALES $11,005 $10,403 6 % $10,996 $10,389 6 % COST OF PRODUCTS SOLD 5,490 5,339 3 % 5,406 5,257 3 % GROSS MARGIN 5,515 5,064 9 % 5,590 5,132 9 % MARKETING, RESEARCH & ADMINISTRATION 3,267 3,200 2 % 3,210 3,079 4 % OPERATING INCOME 2,248 1,864 21 % 2,380 2,053 16 % TOTAL INTEREST EXPENSE 143 150 143 150 OTHER NON-OPERATING INCOME, NET 74 200 74 200 EARNINGS BEFORE INCOME TAXES 2,179 1,914 14 % 2,311 2,103 10 % INCOME TAXES 685 615 719 658

NET EARNINGS $1,494 $1,299 15 % $1,592 $1,445 10 %

EFFECTIVE TAX RATE 31.4 % 32.1 % 31.1 % 31.3 %

PER COMMON SHARE: BASIC NET EARNINGS $1.13 $0.98 15 % $1.20 $1.09 10 % DILUTED NET EARNINGS $1.06 $0.93 14 % $1.13 $1.03 10 % DIVIDENDS $0.41 $0.38 $0.41 $0.38 AVERAGE DILUTED SHARES OUTSTANDING 1,402.6 1,401.5 1,402.6 1,401.5

COMPARISONS AS A % OF NET Basis Basis SALES Pt Chg Pt Chg COST OF PRODUCTS SOLD 49.9 % 51.3 % 49.2 % 50.6 % GROSS MARGIN 50.1 % 48.7 % 140 50.8 % 49.4 % 140 MARKETING, RESEARCH & ADMINISTRATION 29.7 % 30.8 % (110) 29.2 % 29.6 % (40) OPERATING MARGIN 20.4 % 17.9 % 250 21.6 % 19.8 % 180 EARNINGS BEFORE INCOME TAXES 19.8 % 18.4 % 21.0 % 20.2 % NET EARNINGS 13.6 % 12.5 % 14.5 % 13.9 %

          THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
          (Amounts in Millions Except Per Share Amounts)
                Consolidated Earnings Information

                                          FYTD
                                                W/O Restructuring Chgs
                        12/31/02 12/31/01 % CHG 12/31/02  12/31/01 % CHG

NET SALES $21,801 $20,169 8 % $21,797 $20,131 8 % COST OF PRODUCTS SOLD 10,979 10,450 5 % 10,812 10,248 6 % GROSS MARGIN 10,822 9,719 11 % 10,985 9,883 11 % MARKETING, RESEARCH & ADMINISTRATION 6,395 6,093 5 % 6,275 5,758 9 % OPERATING INCOME 4,427 3,626 22 % 4,710 4,125 14 % TOTAL INTEREST EXPENSE 287 307 287 307 OTHER NON-OPERATING INCOME, NET 177 222 177 222 EARNINGS BEFORE INCOME TAXES 4,317 3,541 22 % 4,600 4,040 14 % INCOME TAXES 1,359 1,138 1,431 1,253

NET EARNINGS 2,958 $2,403 23 % $3,169 $2,787 14 %

EFFECTIVE TAX RATE 31.5 % 32.1 % 31.1 % 31.0 %

PER COMMON SHARE: BASIC NET EARNINGS $2.23 $1.81 23 % $2.39 $2.10 14 % DILUTED NET EARNINGS $2.10 $1.71 23 % $2.25 $1.99 13 % DIVIDENDS $0.82 $0.76 $0.82 $0.76 AVERAGE DILUTED SHARES OUTSTANDING 1,404.9 1,401.0 1,404.9 1,401.0

COMPARISONS AS A % OF NET Basis Basis SALES Pt Chg Pt Chg COST OF PRODUCTS SOLD 50.4 % 51.8 % 49.6 % 50.9 % GROSS MARGIN 49.6 % 48.2 % 140 50.4 % 49.1 % 130 MARKETING, RESEARCH & ADMINISTRATION 29.3 % 30.2 % (90) 28.8 % 28.6 % 20 OPERATING MARGIN 20.3 % 18.0 % 230 21.6 % 20.5 % 110 EARNINGS BEFORE INCOME TAXES 19.8 % 17.6 % 21.1 % 20.1 % NET EARNINGS 13.6 % 11.9 % 14.5 % 13.8 %

          THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
                        (Amounts in Millions)
                 Consolidated Cash Flows Information

                                          Six Months Ended December 31
                                               2002              2001

OPERATING ACTIVITIES NET EARNINGS $2,958 $2,403 DEPRECIATION AND AMORTIZATION 844 784 DEFERRED INCOME TAXES 166 115 CHANGES IN: ACCOUNTS RECEIVABLE (117) (397) INVENTORIES (89) (139) ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES 73 876 OTHER OPERATING ASSETS & LIABILITIES 151 (542) OTHER 340 77

TOTAL OPERATING ACTIVITIES                     4,326             3,177

CAPITAL EXPENDITURES (616) (668)

FREE CASH FLOW BEFORE DIVIDENDS $3,710 $2,509

            THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
                        (Amounts in Millions)
                Consolidated Balance Sheet Information

                                      December 31, 2002    June 30, 2002

CASH AND CASH EQUIVALENTS $5,106 $3,427 INVESTMENTS SECURITIES 218 196 ACCOUNTS RECEIVABLE 3,240 3,090 TOTAL INVENTORIES 3,610 3,456 OTHER 2,017 1,997 TOTAL CURRENT ASSETS 14,191 12,166

NET PROPERTY, PLANT AND EQUIPMENT 13,125 13,349 NET GOODWILL AND OTHER INTANGIBLE ASSETS 13,446 13,430 OTHER NON-CURRENT ASSETS 1,680 1,831

TOTAL ASSETS $42,442 $40,776

ACCOUNTS PAYABLE $2,021 $2,205 ACCRUED AND OTHER LIABILITIES 5,352 5,330 TAXES PAYABLE 1,839 1,438 DEBT DUE WITHIN ONE YEAR 3,491 3,731 TOTAL CURRENT LIABILITIES 12,703 12,704

LONG-TERM DEBT 11,534 11,201 OTHER 3,369 3,165 TOTAL LIABILITIES 27,606 27,070

TOTAL SHAREHOLDERS' EQUITY 14,836 13,706

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $42,442 $40,776

The Procter & Gamble Company

CONTACT: Media - P&G Corporate Media Center, Inside US, +1-866-776-2837, or Outside the US, +1-513-945-9087, or Investors - John P. Goodwin, of The Procter & Gamble Company, +1-513-983-2414

Web site: www.pg.com

www.vheadline.com Posted: Tuesday, January 28, 2003 - 2:15:17 AM By: Robert Rudnicki

Support for the opposition-led national work stoppage appears to be waning as many of the nation's schools, shopping malls and fast food franchises look set to reopen as they look to recover from the crippling effects of the stoppage, which commenced on December 2, and has so far failed in its objective of removing President Hugo Chavez Frias and his government from office. 

Shopping malls will decide over the next couple of days whether to reopen their doors, but the early signs seem to point to a reopening, under the guise of aiding the opposition's mini referendum of February 2. 

• Some schools have already restarted classes, and more look destined to follow as many Venezuelans begin to consider the long term costs of failing to provide education to their children. 

The vast majority of Venezuela's many fast food franchises have remained shut since the now eight-week-old stoppage began, but most are now set to reopen as they face the prospect of going bankrupt.

However, despite claims that workers in the all important oil industry were returning to work, striking Petroleos de Venezuela (PDVSA) management insist they will continue to support the stoppage. 

www.rochesterdandc.com By Joseph Spector Democrat and Chronicle

(January 28, 2003) — Sen. Charles Schumer on Monday renewed calls for the Bush administration to consider using the federal government’s oil reserves to help Americans cope with the rising cost of gasoline and home heating oil.

Rochester already has seen a 34 percent increase in gasoline prices and a 23 percent spike in home heating oil costs from last year, Schumer said.

Releasing millions of gallons from the federal government’s Strategic Petroleum Reserve -- or even just threatening to do it -- would spur global oil producers to sell more on the open market and stop the increase in oil and gasoline prices, Schumer said as he stood in 2-degree weather near gas pumps at a Brighton gas station.

“Even if the president were to tell the OPEC nations that he was thinking of using it, the price would come down immediately,” he said.

The reserve, a cache of some 600 million barrels of oil, was created in 1975 to help America respond to oil emergencies. Schumer said former President Clinton checked prices in 2000 by releasing 30 million barrels.

The average gas price in Rochester was $1.18 per gallon last year. On Monday, the average price was $1.58 per gallon. The average cost of residential heating oil was $1.44 per gallon last week, a 33-cent increase from last year, according to the Department of Energy.

With the oil strike in Venezuela and the uncertainty of a war with Iraq, Schumer said now is the time to look to the reserves.

But others disagreed, saying the reserves should be used only in emergencies.

“It’s something we should use in light of a national fuel emergency,” said Gary Tschaepe, regional public affairs manager for the AAA Western and Central New York.

“It’s not the right time for us to release the fuel reserves based on an economic decision.”

White House spokesman Ken Lisaius said the administration is constantly monitoring changes in the world oil market and the amount of reserves. He said the country’s reliance on foreign oil is the reason Bush wants Congress to pass an energy bill that would further explore domestic energy resources.

Moreover, Bush last week released $200 million -- including $36 million for New York -- to a federal home heating aid program to help millions of people with low incomes pay their heating bills, Lisaius said.

In Rochester, the American Red Cross/RG&E Heating Fund is still accepting applications. For those who qualify, the program provides heating assistance to low-income families who need oil, propane, kerosene or help with paying a utility bill when a disconnect notice has been issued.

E-mail address: jspector@DemocratandChronicle.com