Consumer products giant Procter &
Gamble Co. on Tuesday revised downward its third-quarter
and fiscal 2000 earnings estimates, citing
higher-than-anticipated costs and a delay in U.S. approval of
its osteoporosis drug Actonel.
However, the company also forecast sales growth of 7 to 8
percent for the fiscal 2000 second half, and fiscal 2001 sales
growth of 6 to 8 percent and earnings per share growth of 13 to
P&G; said it expects third-quarter earnings per share on a
diluted basis to be down 10 to 11 percent from a year earlier.
It previously forecast a rise of 7 to 9 percent.
Analysts on average expect P&G;, whose best known products
include Tide laundry detergent and Crest toothpaste, to earn 78
cents a shares in the quarter, compared with 72 cents a year
earlier, according to tracking firm First Call/Thomson
Per-share growth for the full fiscal year is expected to be
about 7 percent, down from the 13 percent rise originally
anticipated, P&G; said.
Analysts expect the company to earn $3.21 a share for the
year, a 12.6 percent increase over fiscal 1999's $2.85,
according to First Call.
P&G; said fourth-quarter earnings per share are expected to
grow 16 to 18 percent from a year earlier. That compares with
the 21.8 percent growth forecast by analysts polled by First
Call. Wall Street expects earnings of 67 cents a share, up from
55 cents a year earlier.
P&G; attributed the lower earnings forecasts to
higher-than-anticipated costs for pulp and petroleum-based raw
It also cited a shift in milestone payment and minor asset
sales from the January-to-March period to the April-to-June
period and said the majority of this impact was associated with
a delay in U.S. approval of Actonel, P&G;'s drug for
P&G; said it expects sales growth of 7 to 8 percent for the
second half of fiscal 2000 and said it was comfortable with
guidance of 6 to 8 percent sales growth in fiscal 2001 and an
increase in earnings per share at the upper end of 13 to 15