P&G Notches Profits Rise

02 November 2006

CINCINNATI: Procter & Gamble has reported a 33% climb in first fiscal quarter profits, boosted by sales from Gillette and improved margins.

The maker of brands such as Pampers diapers, Tide detergent and Crest toothpaste said net income rose to $2.7 billion (€2.11bn; £1.41bn) from $2.03bn billion a year earlier. Revenue increased 27% to $18.79bn.

Gillette, acquired last year for $57bn, has increased P&G's portfolio of premium-price products such as men's razors, at a time when sales are falling for manufacturers and retailers targeting lower-income consumers.

Comments analyst Patrick Schumann: "The integration appears to be going as well as expected. We believe Gillette is going to be a tremendous addition over the long term."

Data sourced from Wall Street Journal Online; additional content by WARC staff