P&G Reports $0.98 EPS, Up 17%, on 9% Sales Growth; Announces Plan to Create Stand-Alone Coff...( OND Q...),Health

OND QUARTER FYTD

% 12/31/ 12/31/ %

OND 07 OND 06 CHG 2007 2006 CHG

NET SALES $21,575 $19,725 9 % $41,774 $38,510 8 %

COST OF PRODUCTS SOLD 10,394 9,287 12 % 19,913 18,152 10 %

GROSS MARGIN 11,181 10,438 7 % 21,861 20,358 7 %

SELLING, GENERAL &

ADMINISTRATIVE EXPENSE 6,467 6,088 6 % 12,729 11,954 6 %

OPERATING INCOME 4,714 4,350 8 % 9,132 8,404 9 %

TOTAL INTEREST EXPENSE 389 339 748 697

OTHER NON-OPERATING

INCOME, NET 192 79 385 259

EARNINGS BEFORE INCOME

TAXES 4,517 4,090 10 % 8,769 7,966 10 %

INCOME TAXES 1,247 1,228 2,420 2,406

NET EARNINGS 3,270 2,862 14 % 6,349 5,560 14 %

EFFECTIVE TAX RATE 27.6 % 30.0 % 27.6 % 30.2 %

PER COMMON SHARE:

BASIC NET EARNINGS $1.04 $0.89 17 % $2.02 $1.73 17 %

DILUTED NET EARNINGS $0.98 $0.84 17 % $1.90 $1.63 17 %

DIVIDENDS $0.35 $0.31 13 % $0.70 $0.62 13 %

AVERAGE DILUTED SHARES

OUTSTANDING 3,341.5 3,406.5 3,348.2 3,410.1

COMPARISONS AS A %

OF NET SALES Basis Basis

Pt Chg Pt Chg

COST OF PRODUCTS SOLD 48.2 % 47.1 % 110 47.7 % 47.1 % 60

GROSS MARGIN 51.8 % 52.9 % (110) 52.3 % 52.9 % (60)

SELLING, GENERAL &

ADMINISTRATIVE EXPENSE 30.0 % 30.9 % (90) 30.5 % 31.0 % (50)<
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