Procter & Gamble Co (NYSE:PG) has posted its earnings for 3QFY, with results not achieving the expectations. The decline is thought to have been due to foreign exchange issues. The company has also been planning to expand business in Berkeley County, with a new $500 million manufacturing facility. The facility is planned to employ 700 workers and cover an area of 1 million square foot. The project is expected to be operational by 2017.
Recently, the company has submitted formal plans to the Berkeley County Planning Commission. As per the new details, the site is thought to be larger than previously planned and would create even more employment opportunities. The updated area and head count is expected to be 460-acre and 1,100 people, respectively. Commerce secretary, Keith Burdette, pointed out that the facility is going to be larger than Macy’s distribution center built in 2011, worth $30 million. He also stated that it seems to be four times the size of Macy’s, which is one of the largest buildings in the east. Consequently, the expected cost and head count is also expected to rise as the plans proceed.
P&G is in the process of revamping its portfolio and it has yet to decide the products it would market from the new facility. The ground breaking ceremony is expected to be held this fall, but had previously been thought to be held in summer. Mr. Burdette clarified that the project is gigantic and small delays here and there are to be expected.
The interesting thing to note here is that this was the first multimillion dollar investment, in recent year, which the state was able to attract, without additional incentives. The company will only benefit from the usual tax incentives that are available to all companies in the state.
Procter & Gamble Co (NYSE:PG) closed at $80.95 after losing 1.79% on April 23. The company trades 2.7 billion shares in the market, which is not much given the large line of products it offers. The share has a 52-week range of $77.29-$93.89.