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P&G tops 1Q forecasts
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October 22, 1998: 10:39 a.m. ET
Consumer brands giant sees growth accelerating in second half of '99
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NEW YORK (CNNfn) - Consumer brands giant Procter & Gamble Co. Thursday turned in a better-than-expected profit for its fiscal first quarter, adding it expects growth to accelerate in the second half of the fiscal year.
Cincinnati-based P&G reported net income rose 7 percent to $1.17 billion, or 80 cents a share, from $1.09 billion, or 73 cents, a year earlier. That topped the 77 cents consensus estimate analysts had made.
P&G's stock (PG) rose 9/16 to 84-3/8 in early Thursday trading on the New York Stock Exchange.
With products ranging from Tide laundry detergent to Pringles potato chips, P&G registered 2 percent growth in first-quarter sales to $9.5 billion.
"Like many other multinational companies, our sales growth has been negatively impacted in developing markets of the world, especially Russia, Asia and parts of Latin America," John R. Pepper, P&G's outgoing chairman and chief executive, said.
"We expect our sales and earnings growth rate to accelerate in the second half of the fiscal year," he said.
But P&G was able to offset the currency fluctuations in Latin America with higher prices bringing sales up 13 percent. Asian sales fell 7 percent due to unfavorable effects of exchange rates.
Sales in Europe, Middle East and Africa rose 4 percent while North America registered a sluggish 1 percent increase. 
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Procter & Gamble
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