P&G Sees 2Q Sales, Earnings at Top of Range

Procter & Gamble Co. expects sales growth of 25% to 26% for the quarter, near the high end of its prior guidance range of 23% to 26%. It forecasts earnings of 68 cents to 69 cents a share for the quarter, versus its previous forecast of 66 cents to 69 cents a share, citing lower than expected dilution from the Gillette acquisition. Analysts, on average, expected the company to post second quarter earnings of 67 cents a share, according to Thomson First Call. The company still expects Gillette dilution for the fiscal year to be in the 20 cents to 26 cents a share range. P&G expects organic sales growth (which excluding the impact of foreign exchange, acquisitions and divestitures) of 6% to 7%, led by its household care and beauty businesses. The Gillette global business unit is expected to deliver stronger sales growth than initially expected. P&G previously anticipated flat to low single-digit sales growth. Shares closed on Monday at $56.91.