Procter and Gamble profit jumps on global sales

April 28, 2011
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, NEW YORK, Apr 28 – US consumer products giant Procter & Gamble on Thursday said net profit rose 11 percent in its third quarter as sales increased in all its regions around the world.

The maker of Crest toothpaste, Braun shavers, Tide laundry detergent and other major consumer brands reported net income of $2.9 billion in the January-March period, a gain of 11 percent from a year ago.

Earnings per share were 96 cents, a rise of 16 percent from the year-ago period that was driven by a reduction in the effective tax rate and a drop in shares outstanding, the Cincinnati, Ohio-based firm said in a statement.

Developing countries led a 5.0 percent net sales growth to $20.2 billion as market share increased in all geographic regions, helped by a favorable exchange rate.

"We delivered broad-based volume, sales, and market share growth, and grew EPS in a very difficult operating environment," P&G chief executive Bob McDonald said in the statement.

The net sales and EPS numbers missed the average analyst estimates of $20.3 billion and 97 cents, respectively.

The company said it expected lower EPS for the current fiscal fourth quarter, in the range of 80-85 cents.

The company repurchased $1.0 billion of shares during the third quarter and paid $1.4 billion in dividends.

P&G, founded in 1837, noted it announced earlier in April a 9.0 percent hike to its quarterly dividend.

"This is the 121st consecutive year since P&G was incorporated in which the company has paid a dividend; and the 55th consecutive year that the dividend has increased," said the blue-chip component of the 30-stock Dow Jones Industrial Average.

P&G shares fell 1.59 percent to $63 in pre-market trade in New York.

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