CINCINNATI, January 28: Procter & Gamble Co said its earnings jumped 11 per cent in the last quarter, but the consumer products giant warned that its results from Asia during the next two quarters will be well below year-ago levels as the full effect of the Asian economic crisis is felt.The Cincinnati, Ohio-based company, whose fiscal year ends in June, said it earned $1.04 billion, or 76 cents a share, in its fiscal third quarter ended December 31 compared with year-earlier earnings of $944 million, or 67 cents a share.
Revenues rose to $9.64 billion from $9.14 billion.
Despite the warning about the impact of Asia's economic turmoil, P&G said that, overall, the region's problems are not expected to have a major impact on its earnings growth during its current fiscal year.
"The depth and duration of the economic effects are still uncertain," it said in a statement.
Procter & Gamble's stock was up $1.754 at $80.25 on the New York Stock Exchange in late trading.
"Strong volume growth and solidmargin gains continue to drive earnings in line with our aggressive targets," John E Pepper, chairman and chief executive, said of the quarter's overall results.
"Our strength in North America and Europe has allowed us to weather the severe economic issues we have seen to date in Asia," he said. "Long-term, we are confident that Asia, with over four billion people and an increasing standard of living, represents a source of tremendous growth for the company."
The consumer products giant, whose products include Tide detergent, Crest toothpaste, Pringles snacks and Pampers diapers, said sales fell 5 per cent in its Asian unit during the second quarter.
"While Asia was weak, the rest of the business more than made up for it," said Amy Low, analyst for Goldman Sachs.
"Asia's going to be very soft for them in the second half of the year," she said. "I think they can make it up with this continued strength in North America and Europe."
The North American unit saw a gain of 6 per cent in volume growth and7 per cent sales growth during the second quarter, P&G said.
Meanwhile, unit volume in Europe, the Middle East and Africa increased 12 per cent during the second quarter, while net sales rose 4 per cent, the company said.
The Latin America unit posted a gain of 15 per cent in growth unit volume in the second quarter and sales in that region rose 18 per cent, it said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
