PG Procter and Gamble Co

PROCTER & GAMBLE

Pampers Maker Enjoys Higher Sales

Procter & Gamble Co. increased sales of staples from laundry detergent to toothpaste in the most recent quarter, which boosted the company's shares despite a warning that growth will be spotty in the months ahead.

The maker of Gillette razors and Pampers diapers on Tuesday posted an unexpected rise in profit for the quarter and said organic sales -- a closely watched metric that strips out currency moves, acquisitions and divestments -- grew 3%, the biggest increase in more than a year. In 4 p.m. New York trading Tuesday, the company's shares were up 3.4% at $86.97.

In all for the latest quarter, P&G reported profit of $2.71 billion for the first quarter ended Sept. 30, up 4.2% from a year earlier. Revenue was essentially flat at $16.5 billion.

The company backed its 2017 forecast for per-share earnings growth in the mid-single digits from fiscal 2016 and sales growth of about 1%.

--Sharon Terlep and Anne Steel

UNITED TECHNOLOGIES

Profit Rises Despite Cost of Engine Rollout

United Technologies Corp. reported strong earnings and sales growth, dodging pressure that has hurt rival industrial firms, even as it struggles with the rollout of its new jet engine.

The third quarter showed that the company has been able to balance out the rising cost of making the new jet engine -- the product of more than a decade and $10 billion in investment -- with strong performance across its other businesses, including its air conditioning and building controls businesses and its aerospace systems maker.

"Balance still works at UTC," Chief Executive Gregory Hayes said on a conference call. Shares of the company rose about 1.85%, closing at $101.36.

The company reported a 8.7% increase in third-quarter profit while revenue grew 4.1% to $14.35 billion. The company raised its 2016 profit and sales forecasts.

At the same time, the company warned that profits will be flat next year, weighed down by costs of building new jet engines and clawing back market share for elevators.

--Anne Steele

MERCK

Cancer Drug Sales Provide a Boost

Merck & Co. posted increases in third-quarter revenue and profit, helped by higher sales of a closely watched cancer treatment and vaccines. Merck is trying to overcome pressure on sales of its top products. The Kenilworth, N.J., company is counting on rising sales of its new cancer drug Keytruda.

For the third quarter, Keytruda posted sales of $356 million, up from $159 million in the same quarter last year.

The company posted a profit in the quarter of $2.18 billion, or 78 cents a share, up from $1.83 billion, or 64 cents a share, a year prior. Excluding restructuring and acquisition-related costs and other items, per-share earnings rose to $1.07 from 96 cents. Sales grew 4.6% to $10.54 billion.

Analysts polled by Thomson Reuters had forecast per-share earnings of 99 cents a share on revenue of $10.18 billion.

For the year, Merck now projects per-share adjusted earnings between $3.71 and $3.78 on revenue between $39.7 billion and $40.2 billion. It had previously expected earnings of $3.67 to $3.77 and revenue of $39.1 billion to $40.1 billion.

--Peter Loftus and Austen Hufford

(END) Dow Jones Newswires

October 26, 2016 02:48 ET (06:48 GMT)

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