Procter & Gamble profit jumps 19%

CINCINNATI -- The company also confirmed its earnings-per-share guidance for fiscal 2008 and announced plans to substantially increase its stock buyback.

Net income for the quarter ended June 30 rose to $2.27 billion, or 67 cents per share, from $1.9 billion, or 55 cents per share, a year earlier.

Sales for the quarter rose 8% to $19.27 billion from $17.84 billion, led by double-digit increases in blades and razors, fabric and home care, and health care. Sales from businesses it has owned more than a year rose 5%, while foreign exchange contributed 3% to sales growth.

On average, analysts surveyed by Thomson Financial forecast a quarterly profit of 66 cents per share on sales of $19.11 billion. But P&G's earnings guidance for the next quarter and year was a little below analysts' forecasts.

P&G shares fell in morning trading.

Sales in its blades and razors business were up 18%, to $1.4 billion, for the quarter, as the Gillette Fusion shaving system, launched last year, and this year's Venus Breeze shaver for women posted strong sales. P&G said its integration of Gillette, acquired in 2005, is ahead of schedule.

Meanwhile, new products under such brands as Tide detergent, Crest toothpaste and Olay skin care added to sales growth for the quarter and the year. P&G said sales were $76.5 billion for its fiscal year, up 12% from $68.2 billion, including double-digit increases in developing markets.

The company said its board has approved buying $24 billion to $30 billion in stock over the next three years; a rate of $8 billion to $10 billion a year, compared with the past year's $5.6 billion in stock buybacks.

"Our strong cash generation results and our confidence in the business outlook have enabled us to substantially increase our share repurchase commitment for the next three years," A.G. Lafley, P&G's chairman and chief executive, said.