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P&G posts higher-than-expected quarterly profit

P&G posts higher-than-expected quarterly profit
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First Published: Wed, Oct 27 2010. 05 28 PM IST
New York: Procter & Gamble Co posted a higher-than-expected quarterly profit as new products and strength in emerging markets helped spur sales volume growth at the world’s largest household products company.
P&G, which makes such popular items as Pampers diapers and Gillette razors, also said it expected full-year earnings per share of $3.91 to $4.01, excluding special items. Analysts on average forecast $3.97 a share, according to Thomson Reuters I/B/E/S.
The company warned that higher marketing spending and commodity costs would pressure second-quarter profit.
As the economy shows halting signs of recovery, consumer products companies are using promotions and focusing on new products with fresh features to attract purchases.
P&G has invested in new products released this year, including Pampers Dry Max diapers, the Fusion ProGlide razor and Crest 3D White tooth-whitening strips.
Kimberly-Clark Corp, which competes with P&G in such categories as diapers, tissues and tampons, posted lower-than-expected earnings on Tuesday due to sluggish sales and lower prices.
P&G said profit fell to $3.08 billion, or $1.02 per share, in the first quarter that ended 30 September, from $3.31 billion, or $1.06 per share, a year earlier.
Analysts on average forecast earnings of $1.00 a share.
Revenue rose 2% to $20.12 billion, compared with the analysts’ average estimate of $20.24 billion.
But volume, a measure of products shipped that factors out currency fluctuations and price changes, rose 8%.
P&G’s shares were up 46 cents at $63.32 in premarket trading.
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First Published: Wed, Oct 27 2010. 05 28 PM IST