Proctor & Gamble Profits Dip But Exceed Consensus; Shares Fall

Proctor & Gamble (NYSE: PG) posted higher-than-expected quarterly profits, helped by highest volume gain in more than four years. The company, however, forecasted results for the current quarter short of the Wall Street estimates.

For the quarter ended March 31, PG reported profits of $2.59 billion, or $0.83 a share, down from $2.61 billion, or $0.84, a year earlier. Excluding restructuring and other impacts, earnings rose to $0.89.

The maker of Tide detergent, Pampers diapers and Olay face cream said that its revenues rose 7% to $19.18 billion, with organic sales moving up 4%. The volume of goods sold by Proctor & Gamble jumped 7%. For fiscal 2010, P&G expects to earn $4.06-$4.12 per share instead of $4.02-$4.12 per share.

The company projected its fourth-quarter earnings at $0.68-$0.74 and net sales growth at 6%-7%. For the year, PG has raised its earnings forecast to $3.62-$3.68 a share from $3.53-$3.63. Analysts expect the company to earn $0.76 per share on revenue growth of 4%.

The consumer-products giant has slashed the prices of some products, apart from launching several more, with an aim to boost its volumes.

PG’s shares slipped 2.04% to $61.88 at 9:36 am.

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