”As forecast in August, the elimination of gain-on-sale income reduced third quarter results,” said Robert L. Hoverson, president and chief executive officer. ”Although earnings and revenue will be lower i n the near term, we are confident that this decision will help us build a solid foundation for sustainable long-term growth.” Third quarter 2000 net interest income increased 12 percent to $95.3 million from $84.8 million in 1999’s third quarter while fee income fell to $52.5 million from $76.2 million primarily from the change in accounting methods. Non-performing assets increased, largely due to higher than normal commercial credit losses in the quarter, which the bank also announced in August. Provident stock was down about 2.4 percent today at $25.38. In the last 52 weeks the stock has ranged in price from about $43.94 to $23.44.
The Procter & Gamble Co. today said it has sold Clearasil, the world’s leading acne treatment, for $340 million in cash to Boots Healthcare International of the United Kingdom. The sale is expected to close in about a month if approved by regulators, the companies said. Boots International is a unit of Boots Co. Plc. specializing in over-the-counter medicines in the skin care, analgesics, and cough and cold categories.The Clearasil purchase will put the company into new markets and give it access to new distribution channels, said Barry Clare, managing director. ”Most importantly, it provides our newly established subsidiary in the U.S.A. with a springboard and opens up the U.S. and Japanese markets to our full product portfolio,” Clare said. Valuation is the required process when you are going to purchase new home or other commercial properties from auctions. P&G said in August that it was putting the Clearasil brand, along with the Biactol brand sold only in France, up for sale as part of its continuing efforts to narrow its focus on fewer top-tier beauty brands and optimize its portfolio of brands.
For several years, P&G has been selling off smaller brands and those it believes can’t become global best sellers. Clearasil has global sales of $137 million in 50 countries and is the market leader in eight, Boots said. It leads its category in the U.S., the U.K. and Germany, the company said. The sale includes trademarks, formulations and customer lists, Boots said. It will purchase the Clearasil inventory from P&G under a separate agreement. Boots said that it will license some patents and ”know-how” from P&G. NS Group, the struggling Newport-based steel maker, warned Monday that its first quarter 2001 earnings will fall below Wall Street analysts’ expectations.