Analysts predict stability for Procter & Gamble

Shares in Procter & Gamble rose yesterday as analysts reacted positively to its mixed quarterly financial results, and predicted a more stable outlook for the company.

Shares rose 6.88% to $64.18 (£44.86) at close of trade yesterday, after the company reported that third-quarter earnings before restructuring costs rose to $1.01bn, (£705.11m) or 71 cents a share. Sales fell 3% to $9.51bn (£6.65bn) and the company admitted it had lost market share in several core brands as a result of last year's attempt to raise prices.

However, the company's chief executive Alan Lafley said P&G has taken a "hard look" at its pricing in an attempt to increase market share. Prices were reduced in some product categories during the quarter, and the company recently announced that further reductions would be made.

Analysts said that this would help translate future sales growth into earnings growth for the company, which is facing strong competition from rivals.

P&G's chief financial officer Clayt Daley said the company expects to meet analysts' fourth-quarter estimates, with sales growth in the "low single digits" and operating profit "up at least mid-single digits".



Louise Banbury recommends

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