NEW YORK—Consumer products giants Proctor & Gamble Co. (P&G) and Colgate-Palmolive Co. reported higher quarterly sales on a modest recovery in consumer spending.
The Cincinnati, Ohio-based P&G, makers of Bounty towels and Tide laundry detergent, reported higher sales and lower quarterly profit, but both results beat analyst expectations for its fiscal second quarter.
Net income fell 7 percent from a year ago to $4.7 billion, or $1.49 per share, when its results were distorted due to a gain on the sale of its Folgers coffee business. But top-line sales increased 6 percent to $21 billion on an improving global economy and consumer spending.
“We are pleased with the top- and bottom-line underlying results for the quarter,” said Chief Executive Officer Bob McDonald in a statement. “Our investments in innovation, portfolio expansion, marketing support, and consumer value are working.”
P&G is one of the biggest benchmarks for consumer spending patterns as it is the maker of hundreds of brands of household, beauty, and consumer products.
In an interview with Reuters, JP Morgan analyst John Faucher called the results “encouraging.” P&G stood by its fiscal year 2010 sales forecasts as the company digests uncertainties surrounding how fast the global economy would recover, as well as other issues such as Venezuela’s devaluation of its currency and raw material costs.
The company expects P&G to grow its sales in emerging markets such as China and India, and increase total customers by 1 billion by 2014.
For Colgate, worldwide sales were $4.1 billion, up 11.5 percent versus a year ago and unit volume increased 3 percent. Colgate is perceived by analysts to be less affected by the recession as most of its products are necessities such as toothpaste and dish liquid.
Both companies said they increased promotional and advertising spending to counter the global recession, and so far, the strategy appeared to have worked.
“Overall, despite difficult economic conditions around the world and the currency devaluation in Venezuela, our strong top- and bottom-line momentum should continue, which bodes well for another year of double-digit earnings per share growth in 2010,” said Ian Cook, Colgate CEO, in a company statement.
The Cincinnati, Ohio-based P&G, makers of Bounty towels and Tide laundry detergent, reported higher sales and lower quarterly profit, but both results beat analyst expectations for its fiscal second quarter.
Net income fell 7 percent from a year ago to $4.7 billion, or $1.49 per share, when its results were distorted due to a gain on the sale of its Folgers coffee business. But top-line sales increased 6 percent to $21 billion on an improving global economy and consumer spending.
“We are pleased with the top- and bottom-line underlying results for the quarter,” said Chief Executive Officer Bob McDonald in a statement. “Our investments in innovation, portfolio expansion, marketing support, and consumer value are working.”
P&G is one of the biggest benchmarks for consumer spending patterns as it is the maker of hundreds of brands of household, beauty, and consumer products.
In an interview with Reuters, JP Morgan analyst John Faucher called the results “encouraging.” P&G stood by its fiscal year 2010 sales forecasts as the company digests uncertainties surrounding how fast the global economy would recover, as well as other issues such as Venezuela’s devaluation of its currency and raw material costs.
The company expects P&G to grow its sales in emerging markets such as China and India, and increase total customers by 1 billion by 2014.
For Colgate, worldwide sales were $4.1 billion, up 11.5 percent versus a year ago and unit volume increased 3 percent. Colgate is perceived by analysts to be less affected by the recession as most of its products are necessities such as toothpaste and dish liquid.
Both companies said they increased promotional and advertising spending to counter the global recession, and so far, the strategy appeared to have worked.
“Overall, despite difficult economic conditions around the world and the currency devaluation in Venezuela, our strong top- and bottom-line momentum should continue, which bodes well for another year of double-digit earnings per share growth in 2010,” said Ian Cook, Colgate CEO, in a company statement.
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