Procter & Gamble Profits Rise
CINCINNATI (AP) _ Procter & Gamble Co.’s first-quarter profit rose 8.5 percent before one-time restructuring charges as sales rose 4 percent.
The nation’s biggest consumer products maker had earnings before one-time charges of $1.27 billion, or 88 cents per share, compared with $1.17 billion, or 80 cents per share, in the same period last year.
The results for the quarter ended Sept. 30 met the expectations of analysts surveyed by First Call/Thomson Financial. P&G stock rose $5.37 1/2 to $104.62 1/2 in trading at 5:15 p.m. on the New York Stock Exchange.
When one-time charges of $120 million related to the company’s restructuring program are included, P&G earned $1.17 billion, or 80 cents per share, in the latest quarter.
Sales increased by 4 percent from a year ago to $9.92 billion from $9.51 billion.
P&G said it increased the volume of its product shipments by 2 percent.
P&G is in the midst of a reorganization designed to streamline decision-making and help it react more quickly to market demands. The company said it was beginning to see results from the reorganization.
The company reported a 10 percent increase in its fabric and home care business, which includes brands such as Tide detergent; a 2 percent decline in paper products earnings and a 5 percent gain in food and beverage earnings, on products such as Folgers coffee, Pringles snacks and Jif peanut butter.
P&G’s beauty care business had a 4 percent drop in earnings and health care, which includes the newly-acquired Iams pet food business, was up 29 percent.
P&G sells about 300 brands in more than 140 countries, also including Crest toothpaste and Pampers disposable diapers.