UPDATE 2-P&G names McDonald CEO, Lafley keeps chairman role

* P&G names COO Robert McDonald as president and CEO

* A.G. Lafley stays on as chairman after 9 years as CEO

* P&G gave lower-than-expected outlook 2 weeks ago

* Shares slip 13 cents (Adds details, comments, byline, updates stock activity)

By Jessica Wohl

NEW YORK, June 10 (Reuters) - Procter & Gamble Co (PG.N) said on Wednesday that Robert McDonald would become its next chief executive, promoting an operational expert as it navigates the global downturn.

A.G. Lafley will hand over the CEO reins on July 1 and remain chairman as the world's largest consumer products maker tries to reignite sales in a thrifty environment.

McDonald, a 29-year P&G veteran who has been serving as chief operating officer, was widely expected to win the top job, especially after another top-tier P&G executive, Susan Arnold, in March announced plans to retire.

The move marks the latest in a string of upper management changes at Cincinnati-based P&G, which has come under pressure as shoppers cut back on spending on everything from makeup to detergent in the recession.

Less than two weeks ago P&G forecast a fiscal 2010 profit well below Wall Street estimates as it invests in international markets and new products. [ID:nN28309342]

"Having a guy with really deep operational experience is probably what they need," said UBS analyst Nik Modi, who has a "buy" rating on P&G's shares.

Lafley, who turns 62 on June 13, joined P&G in 1977. He has been chairman since 2002 and CEO since 2000. In the nine years since Lafley became CEO, P&G's shares have risen 85 percent.

"He set the groundwork for the cultural and innovation kind of overhaul and then Bob can come in and now do the operational overhaul," Modi said.

McDonald, who turns 56 on June 20, also becomes president and a member of the board. He joined P&G in 1980 and became chief operating officer in July 2007. He is credited with trimming costs throughout P&G's operations. [ID:nN10428818]

Shares of P&G fell 13 cents to $52.28 after rising less than 1 percent in morning trade.

NINE YEARS AT HELM

Lafley, a New Hampshire native, served in the U.S. Navy for five years. He got his MBA at Harvard in 1977, the same year he joined P&G in its marketing department.

He became CEO in June 2000 after the company saw its first decline in operating profit in eight years. In fiscal 2008, P&G's net profit jumped 17 percent and sales rose 9 percent to $83.5 billion.

Lafley refocused P&G on household and beauty care products after predecessor Durk Jager had attempted a broad push into new products and businesses, highlighted by failed talks for a three-way merger with Warner-Lambert Co and the former American Home Products Corp to dramatically boost P&G's pharmaceutical business.

Under Lafley's leadership, partnering with outside companies for innovation and growing the beauty and grooming businesses have been areas of focus.

The hallmark deal during his rein was P&G's $57 billion purchase of Gillette Co in 2005. P&G also bought smaller companies such as Clairol and Wella and shed other brands, most notably selling the Crisco, Jif and Folgers lines to J.M. Smucker Co (SJM.N).

P&G has held onto Gillette units such as Braun appliances and Duracell batteries, which some expected it to shed.

Lafley's tenure also included the aborted 2001 plan for P&G and Coca-Cola Co (KO.N), two of the world's top advertisers, jointly to market and develop certain drinks and snacks.

Among recent management changes at P&G, Chief Financial Officer Clayt Daley stepped into an advisory role in January, giving Treasurer Jon Moeller the CFO post. Susan Arnold, the president of P&G's global business units, stepped down from that role in March. Both are set to leave P&G in September. Global Marketing Officer Jim Stengel left last year. (Reporting by Jessica Wohl; Editing by Lisa Von Ahn and Brian Moss)