NEW YORK (CNN/Money) - Procter & Gamble Co. said Tuesday that it expects third-quarter earnings to post double-digit growth and exceed analysts' estimates of 81 cents a share due to strong volume and cost reductions.

Cincinnati-based P&G, which makes Pampers diapers, Tide detergent, Folgers coffee and other consumer products, also said it sees third-quarter sales growth, excluding the effect of currency exchange, in the high-single digits. The company said monetary exchange will hurt its top line by about 3 percent due to weakness in the euro, yen and Argentine peso.

"We are pleased that we are delivering increased top and bottom line growth," said Procter & Gamble's president and chief executive, A.G. Lafley. "While we still have more to do, we feel good about P&G's progress."

The company expects third-quarter volume growth of 9-to-10 percent due to its Clairol acquisition from Bristol-Myers (BMY: Research, Estimates) and performance of its health care and home care product lines.

In addition, P&G said it expects core earnings in fiscal year 2002 to grow at a rate higher than the prior year, but short of its long-term growth target of double digits. The company also sees sales growth in 2002, excluding currency exchange, higher than last year's rate, but shy of its long-term target of 4-to-6 percent.

The 2002 estimates include the impact of the company's sale of its Jif and Crisco brands to J.R. Smucker Co. (SJM: Research, Estimates), which P&G said will dilute earnings per share in the fourth quarter.

Procter & Gamble said it is comfortable with its previous guidance for fiscal year 2002. Wall Street expects Procter & Gamble (PG: up $1.53 to $89.19, Research, Estimates) to earn $3.51 a share in 2002, according to research firm First Call.