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P&G Affirms Profit, Sales Guidance

Reuters
Friday, 9 Mar 2007 | 11:12 AM ET

Consumer products giant Procter & Gamble stood by its forecast for the current quarter on Friday, but its shares slipped in early trading on concerns profit could miss Wall Street's expectations.

The maker of Tide detergent, Gillette razors and Pampers diapers said it still expects to earn 72 cents to 74 cents a share in its fiscal third quarter quarter, which runs through March.

Analysts, on average, expected a profit of 74 cents a share, according to Thomson Financiall.

P&G, which also stood by its sales expectations for the quarter, gave no details on the performance of individual business segments.

"Tailwinds such as the weak dollar and moderating commodities, coupled with best-in-class innovation and accelerating Gillette cost synergies suggest upsides," said Morgan Stanley analyst Bill Pecoriello, in a research note.

Cincinnati-based P&G expects sales to rise 7% to 9% this quarter. It also expects organic sales, which exclude mergers and the impact of foreign exchange, in line with previous outlook. In January, the company forecast organic sales growth of 5% to 7% for the quarter.

Analysts call for third-quarter revenue of $18.6 billion, up from the $17.25 billion the company posted a year earlier.

In the fiscal second quarter, P&G beat its own profit forecast of 81 cents to 83 cents a share and met analysts' average forecast of 84 cents a share.

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