P&G Quarterly Results Beat Revised Expectations

02 May 2001

Consumer goods behemoth Procter & Gamble yesterday posted better-than-expected results for its Q3 fiscal, spurring a rise in its share price of 6.9% (to $64.18) by close of trading.

Bettering estimates that had been lowered due to the devaluation of the Turkish lira, the group unveiled profits before exceptional items of $1.01 billion (£706 million), up 9% year-on-year. Net income rose from $753m in the same period last year to $893m (including a restructuring charge of $113m), and sales dropped 3% to $9.51bn due to currency movements.

The group attributed the positive results to healthy performances by its Tide washing powder and Pampers nappies brands, as well as an improved tax rate and the sale of its Clearasil skin-care range [WAMN: 18-Oct-00]. However, P&G conceded that several other brands had lost market share. Commented ceo Alan Lafley: “We can and must get our market shares growing more broadly and more consistently.”

News source: The Times (London); Financial Times