Earnings Surge at Procter & Gamble

Boosted by gains in diapers and paper products, Procter & Gamble met Wall Street’s third-quarter earnings target with a 23 percent jump in profit Monday. P&G said it earned $1.27 billion, up from $1.04 billion in the year-ago period.

Revenue was $10.66 billion, up 8%, and ahead of the forecast of $10.47 billion. Procter & Gamble forecasted fourth-quarter volume growth of 5-7% and net sales growth excluding foreign exchange of 4-5%.

Core earnings are forecasted to increase by 10-12%. The company reiterated its full-year profit guidance, and said sales growth will be at the top end of its estimate of 4-6%. Earnings per share are expected to grow by 12-13%.

In a separate announcement, P&G said it upped its tender offer for Wella AG in a deal worth about $6.08 billion. BaFin, the German regulatory authority, has approved the publication of the formal tender offer document.

P&G said it increased its offer for preference shares to 65 euros ($71.50) per share, up 3.50 euros from an earlier price. Wella said in a statement that it “welcomes P&G’s decision to increase the offer price.”

P&G Chief Financial Officer Clayt Daley said the latest price “is final and will not change during the tender period.” The company also said it recently signed an agreement to purchase 77.6% of the voting stock in Wella AG from its majority shareholders.