Procter & Gamble 4Q profit up 19 percent By DAN SEWELL, AP Business Writer

Procter & Gamble 4Q profit up 19 percent By DAN SEWELL, AP Business Writer
1 hour, 53 minutes ago



CINCINNATI - Consumer products maker Procter & Gamble Co., boosted by strong sales of new Gillette razors, reported Friday that its profit for its fourth quarter and the full year each rose 19 percent.

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The company behind the Tide, Crest and Pringles brands also confirmed its earnings-per-share guidance for fiscal 2008 and announced plans to substantially increase its stock buyback.

Net income for the quarter ended June 30 rose to $2.27 billion, or 67 cents per share, from $1.9 billion, or 55 cents per share, a year earlier.

Sales rose 8 percent to $19.27 billion from $17.84 billion, led by double-digit increases in blades and razors, fabric and home care, and health care. Sales from businesses it has owned for more than a year rose 5 percent, while foreign exchange contributed 3 percent to sales growth.

On average, analysts surveyed by Thomson Financial forecast a quarterly profit of 66 cents per share on sales of $19.11 billion.

Sales in its blades and razors business were up 18 percent to $1.4 billion for the quarter, as the Gillette Fusion shaving system, launched last year, and this year's Venus Breeze shaver for women posted strong sales. P&G said its integration of the Gillette Co. acquired in 2005 is ahead of schedule.

Meanwhile, new products under such brands as Tide detergent, Crest toothpaste and Olay skin care added to the sales growth for the quarter and the year.

The company said its board has approved buying $24 billion to $30 billion in stock over the next three years; a rate of $8 billion to $10 billion a year compared with the past year's $5.6 billion in stock buybacks.

"Our strong cash generation results and our confidence in the business outlook have enabled us to substantially increase our share repurchase commitment for the next three years," A.G. Lafley, P&G's chairman and chief executive, said in a statement.

Its shares fell 30 cents to $63 in morning trading. Its shares have ranged from $58.13 to $66.30 over the past 52 weeks.

Profits for the full year rose 19 percent to $10.3 billion, or $3.04 a share, behind sales growth and improved margins. It earned $8.68 billion, or $2.64 a share, a year ago.

The company estimated the impact of the Gillette earnings dilution for the year at 10 cents to 12 cents a share.

Sales for the year were $76.5 billion, up 12 percent from $68.2 billion a year ago. That included double-digit increases in developing markets.

For the next fiscal year, P&G expects earnings per share to rise 13 percent to 14 percent to $3.44 to $3.47. For the July-September quarter, the company projects earnings per share of 88 to 90 cents. Wall Street is looking for profits of 91 cents a share for the first quarter and $3.48 for the year.

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On the Net:

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