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P&G Reports $0.98 EPS, Up 17%, on 9% Sales Growth; Announces Plan to Create Stand-Alone Coffee Company

quarter to

$5.1 billion and organic sales grew five percent. Net sales were up

behind three percent volume growth, a six percent favorable foreign

exchange impact and a positive mix impact driven primarily by strong

growth in Skin Care and Prestige Fragrances. Organic volume in

Prestige Fragrances was up double-digits with continued strong results

on Hugo Boss and Dolce & Gabbana. Skin Care volume increased

high-single digits behind Olay Definity and Regenerist. Hair Care

volume was up low-single digits as strong results on Head & Shoulders

were partially offset by softness in professional hair care. Net

earnings in Beauty were up ten percent to $883 million behind sales

growth. Higher commodity costs and increased marketing spending were

offset by lower overhead costs as a percent of sales.

-- Grooming net sales increased nine percent to $2.2 billion behind seven

percent volume growth. Blades & Razors volume was up double-digits,

led by double-digit developing region growth behind the successful

expansion of Fusion. In developed regions, high-single digit growth in

North America behind Fusion and Venus Breeze more than offset the base

period impact of pipeline volume related to the Fusion launch in

several Western European markets. In Braun, mid-single digit growth in

male and female hair removers was more than offset by lower volume in

home appliances resulting from supply constraints at a contract

manufacturer, a de-emphasis of the home appliances business in the U.S.

and the divestiture of thermometer and blood pressure devices. Net

sales for the segment benefited from a seven percent favorable foreign

exchange impact, but were negatively impacted by mix resulting

primarily from disproportionate developing region growth. N

SOURCE The Procter & Gamble Company
Copyright©2008 PR Newswire.
All rights reserved

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