P&G; Profit Surges 36%; Shares Jump

Procter & Gamble Co. said Wednesday that its fiscal fourth-quarter profit grew 36% as price increases helped boost revenue, and its shares gained 4.2% on the news.

The company -- maker of such household products as Crest toothpaste, Pampers diapers and Tide detergent -- said quarterly profit was $1.9 billion, or 55 cents a share, compared with $1.39 billion, or 52 cents, a year earlier.

The results for the quarter ended June 30 include a dilution of 6 cents to 8 cents a share from the company’s acquisition of Gillette Co.

Revenue climbed 25% to $17.84 billion. So-called organic sales, which exclude the effects of acquisitions, divestitures and foreign exchange, increased 8%.

Analysts on average had predicted a profit of 54 cents a share on revenue of $17.5 billion, according to a Thomson Financial poll.

“In general, the core business is doing quite well,” said Patrick Schumann, an analyst with Edward Jones & Co. in St. Louis. “Some of the concerns on Gillette, we believe, have been overdone. We continue to think the combination of the two is good long term. We’re upbeat.”

Sales were helped by price increases across several segments and the acquisition of the Gillette business late last year.

In addition, unit volume, or shipments, grew 23%, or 6% excluding newly acquired or former businesses.

For the year, profit grew 25% to $8.68 billion, or $2.64 a share, from $6.92 billion, or $2.53, a year earlier. Revenue rose 20% to $68.22 billion.

“This marks the fifth consecutive year in which P&G; has delivered top-line growth at or above the company’s targets,” Chief Executive A.G. Lafley said.

Shares of P&G; rose $2.36 to $58.29. The stock has traded in a 52-week range of $52.75 to $62.50.