P&G Reports EPS of $0.92, Up 16% Behind 8% Sa...( ...),Health

JAS 07 JAS 06 % CHG

NET SALES $20,199 $18,785 8%

COST OF PRODUCTS SOLD 9,519 8,865 7%

GROSS MARGIN 10,680 9,920 8%

SELLING, GENERAL & ADMINISTRATIVE

EXPENSE 6,262 5,866 7%

OPERATING INCOME 4,418 4,054 9%

TOTAL INTEREST EXPENSE 359 358

OTHER NON-OPERATING INCOME, NET 193 180

EARNINGS BEFORE INCOME TAXES 4,252 3,876 10%

INCOME TAXES 1,173 1,178

NET EARNINGS 3,079 2,698 14%

EFFECTIVE TAX RATE 27.6% 30.4%

PER COMMON SHARE:

BASIC NET EARNINGS $0.97 $0.84 15%

DILUTED NET EARNINGS $0.92 $0.79 16%

DIVIDENDS $0.35 $0.31 13%

AVERAGE DILUTED SHARES OUTSTANDING 3,354.2 3,413.3

COMPARISONS AS A % OF NET SALES Basis Pt Chg

COST OF PRODUCTS SOLD 47.1% 47.2% (10)

GROSS MARGIN 52.9% 52.8% 10

SELLING, GENERAL & ADMINISTRATIVE

EXPENSE 31.0% 31.2% (20)

OPERATING MARGIN 21.9% 21.6% 30

EARNINGS BEFORE INCOME TAXES 21.1% 20.6% 50

NET EARNINGS 15.2% 14.4% 80

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
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