Capitalists are supposed to be motivated by profit.
And yet in the U.S. today, some capitalists are no longer profit-oriented but have entered America’s culture wars on the side of the Left, no matter the consequences in loss of sales and market shares. Examples include JC Penney, Dick’s Sporting Goods (CEO Ed Stack nevertheless says he’s okay with Dick’s $150M loss from the company’s gun control policy), and now Proctor & Gamble, the Ohio-based multinational corporation that owns Gillette.
- In January 2019, Gillette launched the #MeToo “The Best Men Can Be” ad campaign against “toxic masculinity,” portraying boys and men as prone to bullying, violence, and sexual harassment — all of which have nothing to do with shaving.
- In April 2019, Gillette launched the Venus campaign promoting obese women and so-called transgenders. (Note: Unlike other physicians and psychologists, the American College of Pediatricians speaks the truth — that transgenderism is a psychological disorder with no basis in biology.)
- In May 2019, Gillette doubled down on its promotion of “transgenders” with an ad of a dad teaching his “transgender” son how to shave.
Well, there are consequences to a business being politicized by wading into America’s culture war.
Reuters reports (via Kitco News), July 30, 2019, that Procter & Gamble (P&G) reported a net loss of about $5.24 billion, or $2.12 per share, for the quarter that ended on June 30, due to an $8 billion non-cash writedown of Gillette. (H/t Paul Joseph Watson of Summit News)
Note: A write-down is an accounting term for the reduction in the book value of assets whose fair market value has fallen below the book value, and thus become an impaired asset. A write-down impacts the company’s income statement and the balance sheet. Shareholders’ equity is reduced as a result of the impairment loss included in the income statement. Because shareholders’ equity falls, debt-to-equity rises. A non-cash write-down is an accounting expense that does not involve a cash payment, but it can represent meaningful changes to a company’s financial standing, weighing on earnings without affecting short-term capital.
For the same period last year, P&G’s net income was $1.89 billion, or 72 cents per share.
Gillette razors, gels and foams are some of P&G’s most internationally distributed products. P&G claims the $8 billion writedown was due primarily to foreign exchange fluctuations, increased competition and a contracting market for blades and razors as consumers in developed markets shave less frequently.
Net sales in P&G’s grooming business, which includes Gillette, have declined in 11 out of the last 12 quarters. So P&G has been cutting prices, hoping to claw back market share from upstart shaving brands such as Harry’s and Dollar Shave Club, although P&G, like other consumer goods companies, has been raising prices on its other non-grooming products because of soaring freight and raw material costs.
In July 2016, David S. Taylor, 61, became Proctor & Gamble’s chairman, president and CEO. (Bloomberg)
Unlike other CEO profiles, the Wikipedia entry on Taylor provides no information on his personal life — his upbringing, marriage or children. But according to Truth Finder, Taylor is married to a woman named Marsha, with whom he has three sons, ages 25 to 31. Here’s his Facebook page.
In the 2016 election cycle, Proctor & Gamble CEO David Taylor donated $148,131 in political contributions to the Democratic Party (e.g., its national and state central committees), PACs and causes, including Act Blue, MoveOn.org, and Hillary Clinton’s presidential campaign.
A reader commented on Taylor’s unsettling “black eyes” that “look like they could burn holes in walls.” Here’s another pic of Taylor for comparison:
Those eyes are frightening . . . .
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