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Procter & Gamble (PG) is reportedly planning to save up to $2B by extending the time it...

Procter & Gamble (PG) is reportedly planning to save up to $2B by extending the time it takes to pay suppliers to 75 days from 45 days. P&G hopes to sweeten the pain by working on an arrangement in which banks would pay the suppliers, possibly early, and then receive the money from P&G later on. The suppliers would be charged a low interest rate until P&G pays up. Companies that could be affected include Albany International (AIN).
Comments (6)
  • frosty
    , contributor
    Comments (688) | Send Message
     
    Hmmm. Sounds like a devious accounting scheme to artificially pump earnings or make the balance sheet look better. If P&G has to resort to such gimmicks, can they be trusted as an investment?
    17 Apr 2013, 08:30 AM Reply Like
  • canewkirk
    , contributor
    Comments (20) | Send Message
     
    Frosty, I couldn't agree more. This is very disturbing news. As a retire economists with twenty-two years experience, this stinks. On the surface it does not pass the smell test for suppliers and the investors.
    17 Apr 2013, 08:53 AM Reply Like
  • Rhianni32
    , contributor
    Comments (1995) | Send Message
     
    Glad I sold out of them last year.
    Stiffing your suppliers? Great plan their guys that'll drive growth.
    17 Apr 2013, 09:20 AM Reply Like
  • TRIPP25
    , contributor
    Comments (12) | Send Message
     
    What a sorry way to do business.
    17 Apr 2013, 09:25 AM Reply Like
  • cnestor1
    , contributor
    Comments (3) | Send Message
     
    It is a sorry way to do business. It would be good to hear what the defense of this tactic is.
    17 Apr 2013, 12:06 PM Reply Like
  • canewkirk
    , contributor
    Comments (20) | Send Message
     
    It's surprising the lack of comments from the professional investment crowd. Also that no one from the company has chosen to respond with their side of the story. So I guess a good game of F your buddy is really OK as long as you hit your projected numbers.
    23 Apr 2013, 10:57 PM Reply Like
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