Procter & Gamble Sees Solid Fourth Quarter

Procter & Gamble (PG Quote) said it expects fourth-quarter earnings to come in at the high end of its previous forecast, thanks to strong sales, organic volume and sound gross margins.

Excluding restructuring charges, the Cincinnati-based consumer products maker expects earnings to grow 12%, which, the company said, matches analysts' consensus of 86 cents a share. The company had previously forecast earnings growth of 10% to 12%. P&G earned 77 cents a share in the fourth quarter last year.

Earnings including charges are expected to grow at a lower rate than those excluding charges, P&G said.

The company said it adjusted sales and volume growth projections to reflect the two-week interruption of business after a tornado struck its Jackson, Tenn., Pringles potato chip manufacturing plant in May. Sales are expected to be up 6% to 7%, with foreign exchange adding about 3% to 4% and acquisitions and divestures deducting 1%.

Analysts expect fourth-quarter revenue of $10.7 billion. Total sales in the fourth quarter last year were $10.2 billion.

P&G now expects volume to increase 4% to 6%. Organic volume growth is projected to be up 5% to 7% and excludes a negative 1% impact from acquisitions and divestitures.

Shares of P&G, a member of the Dow Jones Industrial Average, were down 52 cents to $91.85 on the New York Stock Exchange.