P&G earnings rise 14% amid strong sales growth

CINCINNATI — Consumer products maker Procter & Gamble Co. said Thursday its earnings rose 14 percent in its fiscal second quarter, as strong sales growth and cost-cutting measures more than offset higher commodity costs.

The results prompted the company — which manufacturers products including Tide detergent, Olay skin care and Gillette shavers — to raise its outlook for the full year.

P&G also said it will separate its coffee business into an independent company. Cincinnati-based Folgers Coffee Co., which had sales of about $1.6 billion in 2007, will employ about 1,250 employees at four sites in the United States. Jamie Egasti, president of coffee and global snacks at P&G, was named chief executive of Folgers Coffee.

The company in October said it plans to build a paper-products manufacturing plant in Utah's Box Elder County that will eventually employ 1,000 people.

P&G, also based in Cincinnati, said its net income rose to $3.27 billion, or 98 cents per share, in the October-December period from $2.86 billion, or 84 cents per share, a year ago. Sales grew 9 percent to $21.58 billion from $19.73 billion a year ago.

P&G stock rose 33 cents to close Thursday at $65.42.