P&G second-quarter results beat Wall Street consensus

CINCINNATI -- Consumer products maker Procter & Gamble Co. said Thursday that its earnings rose 14 percent in its fiscal second-quarter as strong sales growth and cost-cutting measures more than offset higher commodity costs.

The results prompted the company to raise its outlook for the full year.

P&G also said it will separate its coffee business into an independent company. Cincinnati-based Folgers Coffee Co., which had sales of about $1.6 billion in 2007, will employ about 1,250 employees at four sites in the United States. Jamie Egasti, current president of coffee and global snacks at P&G, was named chief executive of Folgers Coffee.

P&G said its net income rose to $3.27 billion, or 98 cents per share, in the October-December period from $2.86 billion, or 84 cents per share, a year ago.

Sales grew 9 percent to $21.58 billion from $19.73 billion a year ago.

Analysts surveyed by Thomson Financial expected profit of 97 cents per share on revenue of $21.25 billion.

Looking ahead, P&G raised its 2008 profit outlook to a range of $3.46 to $3.50, up about 15 percent year-over-year and above prior estimates of $3.46 to $3.49. Fiscal third-quarter earnings per share are expected in the range of 79 cents to 81 cents, the company said.

Wall Street has been predicting quarterly profit of 83 cents per share and fiscal 2008 earnings of $3.49 per share.

For the first half of the fiscal year, P&G earned $6.35 billion, or $1.90 a share, up 10 percent from $5.56 billion, or $1.63 a share, in the first half of 2006.