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Procter & Gamble Scrubs Up Sparkling Earnings

Yi Ping Ho

Earnings Scorecard
Actual	Estimated*	Year-Ago
$0.93	$0.92	$0.88

Crest and Clearasil maker Procter & Gamble(PG Quote) posted second-quarter earnings this morning that beat analysts' expectations by a penny, but sales for the quarter were flat amid a dip in worldwide sales.

Cincinnati-based P&G said second-quarter earnings, excluding charges, were $1.31 billion, or 93 cents a share, compared with $1.26 billion, or 88 cents a share, in the same period last year. The 13 analysts polled by earnings tracker First Call/Thomson Financial expected second-quarter earnings of 92 cents a share.

Including a $120 million restructuring charge, the company earned $1.19 billion, or 84 cents a share, up from $1.13 billion, or 78 cents a share.

Sales for the quarter were $10.18 billion, down from $10.59 billion in the year-ago period. The amount of laundry being washed by Cheer and Tide must be tapering off. P&G said the lower sales were due, in part, to lower volume in its largest area, fabric and home care, which faced a "continued difficult competitive environment."

Looking ahead, the company said it sees double-digit earnings per share growth for its third quarter, with earnings of 72 cents to 74 cents a share. That would be up from 64 cents a share a year ago and in line with the First Call consensus figure among analysts of 73 cents a share. P&G also remains "comfortable with the high end" of analysts' estimates for earnings per share growth for the year. Analysts are expecting $3.14 a share for full-year 2001, compared with $2.95 a share in 2000.

The company's shares closed at $66.85 in Monday trading on the New York Stock Exchange . Its 52-week high is $101.12..