CINCINNATI, Ohio (
Procter & Gamble
is maintaining its 2010 earnings forecast amid expectations of greater organic sales growth this year.
For the full-year fiscal 2010, P&G has maintained its previously communicated guidance of $4.02 to $4.12 per share, while analysts had been predicting earnings of $4.15.
The company says net sales growth is estimated to be 3% to 6% for fiscal year 2010. Foreign exchange is expected to increase net sales by 0% to 1%, while the net impact of acquisitions and divestitures is not expected to have a material impact on net sales. The company increased its expectations for organic sales growth to 3% to 5%, versus the previous guidance of 2% to 4%.
For the current January-to-March quarter, P&G expects net sales to increase 7% to 10% and organic sales to grow 4 to 6%. Foreign exchange is expected to increase net sales by 3% to 4%, while the net impact of acquisitions and divestitures is not expected to have a material impact on net sales.
For this quarter, P&G expects diluted net earnings per share, diluted net earnings per share from continuing operations and core EPS to each be 77 cents to 82 cents. Diluted net earnings per share are expected to decline 2% to 8%, while diluted net earnings per share from continuing operations and core EPS are expected to be down 5% to a 1% increase versus the prior-year period, reflecting commodity, market and investment trends.
P&G reported net earnings of $4.7 billion in the fiscal second quarter Thursday, or $1.49 per share, compared with $5 billion, or $1.58 per share in the same period a year ago.
P&G arrived at net sales of $21 billion, up 6% from the previous year.
Analysts surveyed by Thomson Reuters had expected earnings of $1.43 per share on revenue of about $21 billion.
"We are pleased with the top- and bottom-line underlying results for the quarter," the company's chief executive Bob McDonald said.
"Our investments in innovation, portfolio expansion, marketing support and consumer value are working. We continue to drive simplification and leverage our scale to create cost advantages and accelerate growth."
-- Reported by Andrea Tse in New York
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