P & G Reports 15% earnings increase

02/08/05 The Procter & Gamble Company (NYSE: PG) announced strong top- and bottom-line growth for the April - June quarter and the fiscal year. The company posted net sales growth of 10 percent for both the quarter and fiscal year. Diluted net earnings per share were $0.56 for the quarter, a 12 percent increase, and $2.66 for the fiscal year, a 15 percent increase.

This is the fourth consecutive fiscal year the company delivered results at or above its long-term annual growth rate targets for sales, earnings per share and free cash flow productivity. Unit volume grew six percent for the quarter and eight percent for the fiscal year. Organic volume, which excludes the impact of acquisitions and divestitures, increased seven percent for the quarter and eight percent for the fiscal year.

All business segments, regions and each of the company's top 16 brands posted volume growth for the fiscal year.Net sales for the quarter increased 10 percent to $14.26 billion. For the fiscal year, sales also grew 10 percent to $56.74 billion.

Organic sales, which exclude the impacts of acquisitions, divestitures and foreign exchange, grew nine percent for the quarter and eight percent for fiscal year.Diluted net earnings per share increased 12 percent for the quarter and 15 percent for the fiscal year.Earnings for both periods improved behind top-line growth, the benefits of a balanced portfolio and a strong innovation program, despite a challenging cost and competitive environment.

"We delivered another year of strong top- and bottom-line results despite significant challenges from higher commodity costs, increased competitive spending and continued economic weakness in Western Europe and Japan," said Chairman of the Board, President and Chief Executive A.G. Lafley. "Our balanced brand, customer and geographic presence and focus on consumer value and innovation leadership continue to drive P&G's sustained growth. Today, P&G is well positioned to deliver its growth targets, and the combination with Gillette will provide further upside over the mid- and long-term," Lafley added