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Procter & Gamble profits up on higher health product, razor sales

Procter & Gamble profits up on higher health product, razor sales

Procter & Gamble Co., the world's largest consumer products company, said Tuesday its third-quarter earnings rose 14 percent on higher sales of its health products and razors.
The Cincinnati company, whose products range from Tide laundry detergent to Head & Shoulders shampoo to Gillette razors, boosted its full-year earnings target on the strong quarterly sales.
P&G said net income in the three months ended March 31 climbed to $2.51 billion (euro1.84 billion), or 74 cents per share, from $2.21 billion (euro1.62 billion), or 63 cents per share, in the year-earlier period.
The result was in line with the expectations of analysts polled by Thomson Financial. The company's shares fell $1.50, or 2.3 percent, to $62.90 in morning trading on the New York Stock Exchange. The shares have traded in a 52-week range of $52.75 to $66.30, and rose $1.42, or 2.3 percent, on Monday ahead of the earnings report.
Sales rose 8 percent to $18.69 billion (euro13.74 billion) from $17.25 billion (euro12.68 billion) a year ago, exceeding Wall Street's forecast for $18.56 billion (euro13.64 billion).
The company cited double-digit volume growth by established brands such as Tide, Head & Shoulders, Charmin toilet tissue, Olay skin care, and Prilosec OTC heartburn medicine, and double-digit growth in developing markets. P&G said, for example, that hair-care product growth has been especially strong in China, where sales are heading toward $1 billion (euro0.74 billion).
"Strong results this quarter were driven by the growth of P&G's leading brands, Gillette synergy benefits and continued cost discipline," said Chairman, President and Chief Executive A.G. Lafley.
For the full year, the company now projects earnings of $3.01 (euro2.21) to $3.03 (euro2.23), raising the bottom of its earlier forecast of $2.99 (euro2.20) to $3.03 (euro2.23) per share. The earnings forecast includes the impact from P&G's 2005 Gillette Co. acquisition, which the company says will come in at the low end of its guidance for 12 cents to 18 cents per share. The company expects total sales to increase 11 to 12 percent for the year.
For the first nine months of the fiscal year, net earnings were up 19 percent at $8.07 billion (euro5.93 billion), or $2.37 (euro1.74) a share, compared with $6.79 billion (euro4.99 billion), or $2.10 (euro1.54) a share, a year ago. Net sales increased 14 percent to $57.20 billion (euro42.04 billion) from $50.38 billion (euro37.03 billion).
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http://pg.com


Updated : 2021-08-02 10:13 GMT+08:00