<div><p>The Procter & Gamble Co.'s $3.1 billion sale of its prescription drug business is in line with its recent strategy of shedding products to focus on areas with the best growth and profit-margin prospects.</p><p>The deal announced Monday with Warner Chilcott PLC will take away $2.3 billion in annual revenues, including the billion-dollar brand Actonel, an osteoporosis treatment. Last year, P&G sold another billion-dollar brand, Folgers coffee, to J.M. Smucker Co. for some $3 billion.</p><p>"We know that our shareholders don't reward us ... for absolute size; they reward us for growth," Bob McDonald, who became P&G's CEO on July 1, told analysts in a conference call. "And we are going to do what we have to do to get the right portfolio of businesses together."</p><p>P&G, the world's largest consumer products maker, reported Aug. 5 that its fourth-quarter profit fell 18 percent and sales 11 percent. Its revenue for the fiscal year that ended June 30 was $79 billion.</p><p>McDonald said Monday's deal will allow P&G to concentrate more resources on consumer health care, including over-the-counter medicines such as Vicks and Prilosec OTC, feminine care products such as Always, and oral care led by the Crest toothpaste brand.</p><p>He said P&G has plenty of room to increase sales in the consumer health care market, which has grown 5 percent to 6 percent per year and has good margins and solid potential. P&G, also targeting beauty and grooming, has recently acquired the upscale men's skin care line Zirh and men's grooming business The Art of Shaving.</p><p>Analysts think P&G eventually could sell such major brands as Braun appliances, Duracell batteries and Pringles snacks.</p><p>Among satisfied buyers of P&G businesses has been Smucker, which earlier bought Jif peanut butter and Crisco shortening from P&G. The Orrville, Ohio-based company reported Friday its fiscal first-quarter profit more than doubled and beat expectations, mainly because of increased sales from Folgers.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=57314896&bid=informcom" /></div><div id="copyright"><div>

Copyright 2009  <a href="http://www.ap.org">AP Features</a></div></div>