Procter & Gamble cheers markets

P&G weathers the slump in consumer confidence

Consumer goods giant Procter & Gamble (P&G) has provided investors with a ray of hope as global stock markets renewed their downward slide.

The company said on Tuesday that profits before one-off costs for the three months to September came in at $1.46bn (£93.5bn), 30% up on the same period last year, crediting strong sales of electric toothbrushes and hair care products.

Overall sales for the period posted their fastest growth rate in nearly seven years, rising by 11% compared with the previous three months.

On Wall Street, P&G shares were 2% higher at $87.98 in midday trade, bucking the trend in a market that was falling sharply overall in response to news that US consumer confidence had fallen to a nine-year low.

Recovery on track

"It still seems that they're performing above the levels of their peers right now, and given consumer confidence today, this is still a pretty good place to be invested," said Dan Popowics, an analyst at Fifth Third Bank, a P&G shareholder.

The figures suggest that P&G, owner of iconic household good brands such as Pampers nappies and Pringles crisps, has bounced back convincingly after struggling to hit its financial targets two years ago.

Since then, the Cincinnati-based firm has cut production of some items and shed jobs in as part of a restructuring programme.

It has also stepped up efforts to promote its best-known brands, and introduced a range of well-received new products including electric toothbrushes and deodorant soap.