Procter & Gamble Earnings Increased 53% in Quarter2/2/2009
P&G Employs 500 in Iowa City area
The consumer products maker Procter & Gamble reported that its quarterly profit rose 53 percent aided by the sale of its Folgers coffee business, but warned that sales are slowing in the tough economy. The company lowered its earning projections for the full year, and said it expected total sales to fall in the current quarter and possibly for the year.
Procter & Gamble said it earned $5 billion, or $1.58 a share, for the quarter, which ended Dec. 31 and was the second quarter of Procter & Gamble’s fiscal year. That compared with $3.27 billion, or 98 cents a share, in the period a year earlier. The most recent quarter included a one-time gain of 63 cents as a result of the sale of its Folgers unit to the J. M. Smucker Company.
Sales in the period fell 3.2 percent, to $20.37 billion, from $21.04 billion. The company, whose brands cover a wide range of household, beauty and personal care products like Tide detergent, Pampers diapers and Gillette shavers, said sales declined as a result of lower volume and a stronger dollar.
It also confirmed that organic sales — those not related to acquisitions — had slowed below its targets.
Alan G. Lafley, the chief executive, said Procter & Gamble was trying to increase its market share through promotions like offering more coupons and by emphasizing value to lure budget-minded consumers.
Shares of Procter & Gamble, which is based in Cincinnati, fell $3.72, or 6.4 percent, to $54.50.