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Wednesday, 31 October 2007, 03:51 GMT

US firms overcome commodity costs

American singer Katharine McPhee helps launch the Gillette Fusion razor last year Sales of new products and cost cuts helped Proctor & Gamble and smaller rival Colgate Palmolive to shrug off high commodity costs over the quarter.

Profits at the household goods to babycare firm P&G jumped 14% to $3.1bn (£1.5bn) from July to September.

The firm behind Pampers nappies, Ariel and Gillette razors also benefited from a weak dollar, which boosted the value of non-US sales.

The favourable exchange rate was also beneficial for Colgate.

Colgate, the maker of the eponymous toothpaste and Hill's Science Diet pet food said profit was $420.1m for its third quarter, compared with $344.1m a year earlier.

The New York firm is about three years into a four-year restructuring program, with the savings boosting the company's marketing budget.



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Related to this story:
Profit jump lifts P&G to new high (27 Jan 06 |  Business )
Procter cleared for Gillette deal (30 Sep 05 |  Business )
Gillette sharpens up its profits (04 Aug 05 |  Business )
Colgate toothpaste in US recall (15 Jun 07 |  Business )
P&G to acquire Gillette for $57bn (28 Jan 05 |  Business )
Judge cuts through razor ads row (23 Apr 04 |  Business )

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