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Shop Talk

Retailers, consumers and prices

October 30th, 2007

Check Out Line: Higher profits at Procter, Colgate

Posted by: Nicole Maestri
Tags: Shop Talk

Check Out overseas demand for toothpaste, toilet paper and diapers boosting quarterly results at household product makers Procter & Gamble and Colgate-Palmolive.

Profit at P&G — maker of Gillette razors, Charmin toilet paper and Pampers diapers — rose 14 percent, while Colgate – which makes Colgate toothpaste, Mennen deodorant and Hill’s Science Diet pet food – posted a 22 percent gain in its third-quarter results.toilet2.jpg

The reports come as analysts are watching for signs that high oil prices could crimp future results.

P&G said its gross margins are expected to be “temporarily lower” in the current quarter due in part to higher commodity and energy costs. But, it said that gross margins should recover in the second half of the fiscal year due to pricing and increased cost savings from restructuring projects. 

At Colgate, its quarterly gross profit margin, excluding restructuring charges, increased to 57.3 percent from 56.5 percent. It said gross profit margin, excluding restructuring charges, should “be up within our targeted range of 75 to 125 basis points for this year and next year as well.”

Also in the basket:

Liz Claiborne 3rd-qtr profit falls

Avon third-quarter profit higher on better sales

Jarden 3rd-quarter profit tops forecasts

Pernod Q1 sales beat forecast, shares climb

(Photo: Reuters)

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