Procter & Gamble Co. (NYSE:PG) posted strong fourth-quarter results thanks to Fusion razors and Tide detergent. It also raised its forecast for the year.
Net income was $2.86 billion, or 84 cents a share compared with $2.55 billion, or 72 cents, a year earlier. Sales rose 7.6 percent to $19.7 billion in the three months through December, the slowest pace in five quarters, according to Bloomberg News. This beat the consensus views of 83 cents profit and revenue of $19.57 billion.
The company increased its 2007 profit forecast to $2.99 to $3.03 a share from its earlier projection0n of $2.97 to $3.02. Analysts were predicting $3.02 per share, according to Thomson Financial. Shares fell in pre-market trading,
Clearly, 2005's acquisition of Gillette Co. is paying off for Procter & Gamble as is the cost-cutting undertaken by the management team. Sales of razors rose 11 percent to $1.28 billion. Fabric care and home care net revenue soared 11 percent to $4.68 billion .Baby Care and Family Care rose five percent to $3.12 billion, while Snacks, Coffee and Pet Care rose 3 percent to $1.25 billion.
Another positive for the company is the growing confidence of U.S. consumers. Lower energy prices helped push up consumer sentiment in January to higher levels than economists had expected.
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