P&G to raise prices, maintains earnings outlook

AP News
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Posted: Feb 24, 2011 10:43 AM
P&G to raise prices, maintains earnings outlook

Procter & Gamble Co. says it will raise prices to cope with a run-up in commodity costs and turmoil in the Middle East.

The maker of Tide, Pampers and other consumer products would not disclose the size of the increases but said it will release more details in coming months.

Procter & Gamble's Chief Financial Officer, Jon Moeller, reaffirmed the company's full-year guidance but warned these pressures could make it tough to hit the high-end of its ranges.

A number of food and consumer products companies are raising prices to cope with higher costs for aluminum, cotton and other key materials for their products.

Procter & Gamble has already raised some prices, but the company said Thursday that it is facing at least $1 billion in increased commodity costs this year.

However, Moeller also said the cost pressures are not as intense as two years ago when corporations were struggling with another major run-up in commodity costs.

The company is also feeling some impact from issues in Egypt and the larger Middle East.

In January, the Cincinnati-based company said it resumed normal operations in Egypt following the fall of the country's longtime leader Hosni Mubarak. P&G has plants outside of Cairo and a general office in the city that closed amid protests there.

Procter & Gamble said it expects to earn $3.91 per share to $4.01 per share from continuing operations. Analysts polled by FactSet forecast earnings of $3.98 per share.