P&G Could Sell Some Brands, Buy Others

CINCINNATI (TheStreet) -- Procter & Gamble's (PG Quote) new CEO, Robert McDonald, has hinted certain divisions could be sold off if they don't improve results soon, the Wall Street Journal reports, citing people close to the company.

Since becoming CEO in July, McDonald has increased scrutiny of P&G brands including Braun small appliances, Iams pet food, Duracell batteries and Pringles potato snacks.

The division heads have been "pushed to perform better and make the case for more investment," according to one of these people, who said the implication was that those divisions could be divested "if they don't improve results soon," the Journal reports.

The company, meanwhile, has looked at the consumer-products portfolio of Schering-Plough(SGP Quote), which is merging with Merck(MRK Quote), as well as that of Wyeth, which was just acquired by Pfizer (PFE Quote), according to the newspaper.

Another possibility is Alberto-Culver(ACV Quote), a maker of beauty products.

The Journal notes it is unclear whether any of the companies would choose to sell.

It was reported by Bloomberg last week that Procter & Gamble was in talks to buy part of Sara Lee's (SLE Quote) international household products unit, particularly its air care business.

The world's biggest consumer products company is scheduled to report earnings before the stock market opens on Thursday. Analysts surveyed by Thomson Reuters expect fiscal first-quarter earnings of 99 cents a share on sales of $19.77 billion. P&G earned $1.03 a share on sales of $22 billion a year earlier.

-- Reported by Joseph Woelfel in New York .

Follow TheStreet.com on Twitter and become a fan on Facebook.