This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Unilever Management Discusses Q2 2012 Results - Earnings Call Transcript

In the emerging markets, growth rates are slowing as well. In China, you've seen it go down from about 10% to 7.5%. Brazil, always running around the 6%, 7%, now 1%. India, dropping from the 7%, 8% to 5%. And currencies are weakening as well. That adds to the inflationary pressures and squeezing consumer disposable incomes. Take, for example, the Brazilian real, depreciated 15% against the euro, more against the dollar, between middle 2011 and mid-2012. And I think I could give the same for the Indian rupee and some other things.

The developed markets are likely to remain difficult as well with unemployment further increasing and consumer confidence decreasing as austerity measures are starting to bite. At best, we can hope for the status quo to persist but we need to prepare as usual for the worst. In the U.S. for example, retail sales have now fallen for 3 consecutive months, which was last seen in 2008. The situation in Europe is well known to all of us, so no point rehashing it here. Better to confront the realities and to deal with it and that's the position we've always taken. I've spoken before about the scale of youth unemployment in parts of southern Europe and the potential consequences from a lack of social cohesion. But Europe's difficulties are not anymore confined to the south. 2012 growth prospects here in the U.K. for example, have been slashed again, this time from 0.8% to 0.2%. A year ago, just to remind ourselves, the IMF had still forecasted 2.3%. And the numbers that I just saw this morning coming out for the second quarter are actually a negative minus 0.7%.

We also see no signs of reduced competition. Price and promotional activities continue to be heavy in some markets, as well as in some categories, despite the rhetoric of some to the contrary. What is actually happening in the markets will continue to be the key driver for our decision-making.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs