CINCINNATI (TheStreet) -- Procter & Gamble (PG), Colgate-Palmolive (CL) and Unilever (UL) reported that higher commodity costs pressured their financial results in the recent quarter and will continue to do so throughout 2011.
P&G posted a weaker-than-expected 11% rise in fiscal third-quarter earnings, and the firm said commodity inflation led it to cut the high end of its 2011 forecast.
Still, strong sales across its portfolio of consumer brands, and a tax benefit, led P&G's growth last quarter.
P&G said it expects costs to surge to $1.8 billion this fiscal year, about triple what it previously expected at the beginning of 2011. The firm said it would look to cut operational costs before passing higher costs onto consumers.
It now expects full-year core earnings-per-share in a range of $3.91 to $3.96. The upper end of its previous forecast was for earnings of $4.01 per share. Smaller rival Colgate-Palmolive also reported that higher costs pressured its earnings last quarter, though the toothpaste and dishwashing liquid maker met analysts' profit expectations. Colgate has passed some costs on to consumers of its bars of soap and certain other goods. Unilever, maker of Dove soap and Hellmann's mayonnaise, also said it would look to cut operational costs to help offset rising material prices.
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