P&G makes quarterly profit of US$2.56bn

NEW YORK, USA: Consumer goods company Procter & Gamble reported on Wednesday (24 April) that its quarterly earnings topped market forecasts as its net income rose to US$2.56bn in the third quarter of the year.

Sales of $20.7bn were recorded, marginally higher than the US$20.2bn in sales a year ago. It profit for the quarter of US$2.56bn slightly higher than the US$2.41bn in the previous year.

Earnings excluding special items were 99 cents per share for the three months ending in March, better than the 96 cents average estimated by analysts.

P&G manufactures Gillette razors, Pampers nappies and Pantene shampoos. It also has a wide range of consumer products. The company said it recorded strong sales in the United States and continued to benefit from cost-cutting measures introduced earlier.

"We delivered another quarter of steady progress," said Bob McDonald, P&G chairman, president, and chief executive.

"Top-line growth was in line with our expectations. Market shares improved broadly. Strong cost savings enabled us to exceed our profit outlook," he said.

McDonald said the company expected further improvement in the fourth quarter as productivity increased and it planned to repurchase US$6bn in stock.

P&G raised its full-year forecast, increasing the low end of the range of core earnings per share, from US$3.96 to $4.04 compared with the previous year when earnings per share of US$3.85.

Source: AFP via I-Net Bridge