P&G reports a rise in third quarterly profits

Procter & Gamble reported on Tuesday a net profit of $2.51 billion, for the quarter which ended on the March 31, 2007. The world’s largest consumer products company earned a higher profit in comparison to the same quarter last year, which was $2.21 billion. Similarly, the per share price also increased from 63 cents per share to 73 cents per share since the last fiscal year.

P&G announced a 13.6 percent rise in quarterly profit; these profits came in from Procter & Gamble’s developing markets and brought it out of its lower full year profit forecast.

"Strong results this quarter were driven by the growth of Procter & Gamble's leading brands, Gillette synergy benefits and continued cost discipline," said Chairman and Chief Executive A.G. Lafley. "Sales growth was at the top end of our long term target range in a very competitive environment."

Sales at P&G of its huge range of consumer products grew 8.4 percent, whereas, sales volume rose 6 percent and a week dollar added 2 points to the total revenue, P&G is one of those companies which benefited from a lower value of dollar.

Individual sales of Procter & Gamble’s diverse range of products like beauty products, health-care and fabric and home care sales increased 8 percent, 10 percent, and 10 percent respectively.

Baby and family care sales also rose 10 percent. On the contrary, snacks, coffee and pet care sales remained same.

Procter & Gamble’s premium brand, Gillette, again proved to be a market driver, gaining in profitability, as the integration of the division got completed this quarter. P&G forecasts a fiscal year earning of $3.01 to $3.03 per share, in comparison to its January forecast. P&G also projected a total sales growth of 11 percent in the coming fiscal year.

Talking about predictions of its fourth quarter profits, P&G foresees a sales growth of 6 percent to 7 percent.