Gillette Helps Lift Profit 29% at P

Procter & Gamble Co. said Friday that the addition of Gillette Co. helped its second-quarter earnings jump 29% and that profit would be better than expected for the rest of its fiscal year because of strong demand for its wide array of products.

The news sent P&G; stock to a new 52-week high, and one portfolio manager said the strong report should end any investor worries that P&G; bit off too much by buying the razor and battery maker.

The Cincinnati-based maker of Tide detergent, Crest toothpaste and other household brands said it earned $2.55 billion in its second quarter ended Dec. 31, up from $1.98 billion a year earlier. Per-share profit was steady at 72 cents, as the number of shares outstanding increased to 3.55 billion from 2.75 billion.

Sales grew 27% to $18.34 billion. Excluding acquisitions, divestitures and currency fluctuations, sales were up 8%, P&G; said. Analysts polled by Thomson Financial forecast earnings of 69 cents a share and sales of $18.23 billion.

“This quarter’s results, a robust innovation pipeline and good progress on the Gillette integration give us the confidence to raise the earnings outlook for the fiscal year,” said A.G. Lafley, P&G;’s chairman, president and chief executive.

The $57-billion deal with Gillette, which closed Oct. 1, gave P&G; brands such as Duracell, Braun and Oral B. It was a deal that some questioned because of its price and size when it was announced one year ago.

P&G; shares rose 92 cents, or 1.6%, to $59.74.

For its third quarter, P&G; projects earnings of 58 cents to 61 cents a share, compared with analysts’ mean estimate of 60 cents.

P&G; upped its full-year earnings forecast to $2.58 to $2.62 a share.