Procter
Consumer products maker Procter & Gamble Co. said Thursday its fiscal second-quarter earnings rose 14% as strong sales growth and cost-cutting measures more than offset higher commodity costs, and the company raised its outlook for the full year.
P&G also said it will separate its coffee business into an independent company. Cincinnati-based Folgers Coffee Co., which had sales of about $1.6 billion in 2007, will employ about 1,250 employees at four sites in the U.S. Jamie Egasti, current president of coffee and global snacks, was named chief executive of Folgers Coffee.
Net income rose to $3.27 billion, or 98 cents per share, from $2.86 billion, or 84 cents per share, a year ago.
Sales grew 9% to $21.58 billion from $19.73 billion a year ago.
Analysts surveyed by Thomson Financial expected profit of 97 cents per share on revenue of $21.25 billion.
Looking ahead, P&G (PG, Fortune 500) raised its 2008 profit outlook to a range of $3.46 to $3.50, up 14% to 15% year-over-year, and above prior estimates of $3.46 to $3.49 cash advance now. Fiscal third-quarter earnings per share are expected in the range of 79 cents to 81 cents.
Wall Street is predicting quarterly profit of 83 cents per share, and fiscal 2008 earnings of $3.49 per share.
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