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The profit of Procter & Gamble decreased

The household and healthcare products manufacturer Procter & Gamble announced 28% drop in profit for the last quarter of 2010 after being hit by weak sales in developed markets like the U.S. The same was injured and smaller rival company Colgate-Palmolive, despite policy to run promotions and coupons with which to attract buyers who avoid expensive brands because of the crisis. Both companies marketed new products such as Procter & Gamble offers cheaper versions of some of its most popular products, while Colgate offers a variety of new toothpastes. Procter & Gamble reported higher demand for products with lower prices, which exert pressure on the company's revenue. As a result, the company net profit decreased to 3.33 billion dollars or 1.11 dollars per share, during the second fiscal quarter ended in December. A year ago, profit was the amount of 4.66 billion dollars or 1.49 dollars per share. Much of the difference is due to the extra revenue the company a year ago from the sale of its business with pharmaceutical products. After excluding one-off income and expenses, earnings per share for the last three months of 2010 was 1.13 dollars. The average estimate of analysts was for earnings of 1.10 dollars. The sales of Procter & Gamble rose 2% yoy in issue quarter to 21.3 billion dollars, taking into account the 6% growth in volume of physical sales.
Colgate turn a net profit of 624 million dollars or 1.24 dollars per share, compared with a profit of 631 million dollars or 1.21 dollars per share, a year ago. Sales of the company, which competes with P & G in direct sales of toothbrushes and toothpaste, fell by 2.5 percent annually to 3.98 billion dollars. The management of Procter & Gamble expects net earnings per share in the range of 3.91 to 4.01 dollars this year and sales growth of 4 to 6 per cent. Household products manufacturer Procter & Gamble announced 28% drop in profit for the last quarter of 2010 after being hit by weak sales in developed markets like the U.S.