Procter &  Gamble Profit Rises, Raises Forecast

Procter & Gamble Wednesday posted higher quarterly profit as cost controls helped offset soaring prices for oil and other commodities, and raised its forecast for its fiscal year.

"Consumers are looking for value in this economy, particularly in the U.S., and we're offering products that represent good value to the consumer, based on a combination of innovation and competitive pricing," said P&G Chief Financial Officer Clayton Daley, in an interview on CNBC's "Squawk Box."

The world's largest consumer products maker , with brands ranging from Pampers diapers to Olay skin-care products, reported earnings of $2.71 billion, or 82 cents a share, in its fiscal third quarter ended in March, compared with $2.51 billion, or 74 cents per share, in the year-earlier quarter.

Like other consumer products makers, P&G has faced soaring costs for items like oil, the resin used in packaging, and other raw materials.

However, with tight cost controls in place and the ability to raise the price of its products P&G was able to offset the higher costs and now expects its earnings for fiscal year 2008 to be in the range of $3.48 to $3.50 a share.

"We have been raising prices, because of increased commodity and energy costs, but at the end of the day, this is an industry phenomenon," Daley told CNBC. "Our competitors, private labels, have all increased prices, and so the important thing for us is the relative price of our products."

"We've been hoping for the last two years that commodities would begin to flatten, and they haven't, and we've seen them just continue to go up, so we're building our plans for the balance of this year and next year on the basis that commodity and energy prices will remain high," Daley said.

-Reuters contributed to this report.