P&G posts higher profit and maintains outlook

Consumer products group, Procter & Gamble, said today quarterly profit rose 14 per cent , boosted by demand for products …

Consumer products group, Procter & Gamble, said today quarterly profit rose 14 per cent , boosted by demand for products like Head & Shoulders shampoo and Olay beauty products, and a gain from the recent sale of its juice business.

The maker of Crest toothpaste, Tide detergent and a host of other household products also stood by its outlook despite the increasing costs that have plagued the industry.

Higher raw material costs, price competition and other factors have led rivals such as Kimberly-Clark, Colgate-Palmolive and Unilever to issue bleak forecasts in recent weeks. But analysts have said P&G's size and scale could help it weather the storm.

Earnings rose to $2 billion in the quarter ended in September from $1.76 billion a year earlier.

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P&G sold its slow-growing Sunny Delight and Punica juice brands to private equity firm JW Childs Associates over the summer. That transaction added 2 cents to earnings per share, P&G said.

The company said net sales rose 13 per cent , to $13.74 billion, above analysts' mean target of $13.57 billion.