Procter&Gamble, Colgate warns of bigger hit to gross margin

Procter & Gamble’s quarterly profit dipped 2% from a year ago, the consumer products company reported Thursday, as it struggled to accelerate volume growth and lost market share in North America and Western Europe due to price increases.

P&G, whose large roster of household staples ranges from Duracell batteries to Tide detergent, also issued a profit forecast for the October to December period that fell short of current analyst expectations by as much as 10 cents a share.

Still, the company PG +0.48% backed its fiscal June 2012 earning forecast of $4.17 to $4.33 a share, indicating profit growth will advance later in its fiscal year on price increases and cost cuts.

P&G shares rose a nickel to $65 in midday trades. The stock, which has lagged rival consumer staples companies, is up 1% for the year.

Consumer staples makers are battling a prolonged economic slump that’s making sales growth challenging in economically developed countries while a surge in raw material and packaging costs is pinching margins.

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By Matt Andrejczak, MarketWatch

SAN FRANCISCO (MarketWatch) — Procter & Gamble’s quarterly profit dipped 2% from a year ago, the consumer products company reported Thursday, as it struggled to accelerate volume growth and lost market share in North America and Western Europe due to price increases.
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U.S. growth accelerates

U.S. GDP grew 2.5% in the third quarter as consumers and businesses boosted spending. Separately, new claims for jobless benefits were mostly flat at 402,000.

P&G, whose large roster of household staples ranges from Duracell batteries to Tide detergent, also issued a profit forecast for the October to December period that fell short of current analyst expectations by as much as 10 cents a share.

Still, the company PG +0.48% backed its fiscal June 2012 earning forecast of $4.17 to $4.33 a share, indicating profit growth will advance later in its fiscal year on price increases and cost cuts.

P&G shares rose a nickel to $65 in midday trades. The stock, which has lagged rival consumer staples companies, is up 1% for the year.

Consumer staples makers are battling a prolonged economic slump that’s making sales growth challenging in economically developed countries while a surge in raw material and packaging costs is pinching margins.