Proctor & Gamble Sees 33% Increase In Profits

Cincinnati, OH (AHN) - Helped by tax benefits and a lower tax rate, Procter & Gamble says its fourth-quarter profits rose by a whopping 33 percent.

That translated to $3.02 billion or 92 cents per share, from $2.27 billion or 67 cents per share for the same quarter a year earlier for the Cincinnati-based company, maker of Tide laundry detergent and Head & Shoulders shampoo.

Not counting taxes, the consumer products company says its shares were 80 cents. Revenue climbed to $21.27 billion, up from $19.27 billion, while analysts had predicted a rise to $21.05 billion.

For the first quarter, P&G expects 98 cents to $1 in earnings per share while analysts are predicting $1 per share. As for 2009 adjusted profits, P&G is forecasting $3.80 to $3.87 per share while analysts envision $3.50 per share.

Proctor & Gamble Chief Executive A.J. Lafley announced price increases on Pantene hair products, Gillette shaving cream and Ivory soap to deal with skyrocketing costs of oil used in plastic packaging and pulp used in Bounty paper towels and Charmin toilet paper. P&G also raised prices In the past year, P&G has raised prices on Cascade dishwashing detergent, Lams pet food and Gillette razors, which have also helped booster fourth quarter sales.

P&G said last in July that it will raises prices in September by as much as 16 percent for its hair care products, shaving and soaps. These increases would be the largest in a year and a half.