P&G feels recession

CINCINNATI — Even Procter & Gamble Co., the world's largest consumer products maker, is getting dragged down by the spreading recession that has households around the globe looking for ways to tighten their budgets.

P&G reported Friday that its second-quarter profit jumped 53 percent, but that was boosted by the sale of its Folgers coffee business last year. The current outlook isn't so robust, and P&G stock tumbled 6 percent Friday to close at a 52-week low.

The company dropped its earning projections for the full year and expects total sales to fall in the current quarter and possibly for the year. Chairman and CEO A.G. Lafley had warned in December that P&G, long considered a safe harbor in economic tempests, is recession-resistant — but not recession-proof. Friday, he told investors that he remains confident for the long term, but there could be more turbulence in the meantime.

The company is building a plant in Box Elder County that will manufacture paper products and initially employ 300 people. The plant's first phase, representing a $300 million investment, is scheduled to begin operation by the second half of 2010.