Procter & Gamble profit up 14 percent

CHICAGO (Reuters) - Procter & Gamble Co (PG.N: Quote, Profile, Research, Stock Buzz) on Tuesday posted a 14 percent increase in quarterly profit, helped by sales of Gillette razors, Charmin toilet paper and Pampers diapers, the weaker dollar and cost-cutting measures.

The company said profit was $3.08 billion, or 92 cents a share, in the fiscal first quarter that ended September 30, compared with $2.70 billion, or 79 cents a share, a year earlier.

Excluding a one-time tax benefit, earnings were 90 cents a share. Analysts on average had forecast 90 cents a share, according to Reuters Estimates. On September 18, the company reiterated its forecast of 88 to 90 cents a share.

Sales rose 8 percent to $20.20 billion. Analysts on average had forecast $20.25 billion, according to Reuters Estimates. Organic sales, which exclude the impact of acquisitions, divestitures and foreign exchange, increased 5 percent during the quarter, in line with the company's target range, P&G said.

P&G has been boosting sales in emerging markets, focusing on new products such as its Crest Pro-Health oral-care line, and looking at selling off some brands. At the same time, the company is raising prices on a number of products to help offset rising costs for oil, resin and pulp.

P&G said it expects earnings of $3.46 a share to $3.49 a share in fiscal year 2008, raising its forecast range by 2 cents to account for the tax benefit. Sales are expected to grow 6 percent to 8 percent, with currency accounting for about 3 percent, the company said. Analysts on average have forecast $3.47, according to Reuters Estimates.

For the second quarter, the company forecast earnings of 95 to 97 cents a share, with sales up 6 to 8 percent.

P&G shares closed at $71.83 on Monday on the New York Stock Exchange. The stock trades at 20.7 times estimated 2008 earnings per share, compared with a multiple of 19.9 for rival Colgate-Palmolive Co (CL.N: Quote, Profile, Research, Stock Buzz).

(Reporting by Brad Dorfman, editing by Gerald E. McCormick)