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CHICAGO, May 3 (Reuters) Procter&Gamble Co. on Wednesday said quarterly profit jumped 37 percent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers.

But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street's targets and P&G's shares slipped 3 percent in premarket trading.

The maker of Crest toothpaste, Duracell batteries and a host of other products earned CHICAGO, May 3 (Reuters) Procter&Gamble Co. on Wednesday said quarterly profit jumped 37 percent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers.

But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street's targets and P&G's shares slipped 3 percent in premarket trading.

The maker of Crest toothpaste, Duracell batteries and a host of other products earned $2.21 billion, or 63 cents per share, in its third quarter, up from $1.61 billion, or 59 cents, a year earlier.

Analysts' average profit forecast was 61 cents per share, according to Reuters Estimates.

''They beat EPS, but questions on a decelerating top line, Gillette, and negatives earnings revisions are going to hit the stock,'' Bear Stearns analyst Justin Hott, who rates P&G ''peer perform,'' said in a research note.

In March, Cincinnati-based P&G said it expected to earn 59 cents to 61 cents per share in the quarter, including a hit of 7 cents to 10 cents from the acquisition of Gillette, which closed in October.

P&G on Wednesday estimated the hit from the Gillette acquisition was 7 cents to 8 cents per share. P&G also saw a penny per share benefit from a lower-than-expected tax rate.

Also in March, P&G gave a cautious quarterly sales forecast, excluding the impact of acquisitions, divestitures and foreign exchange, due to inventory cutbacks by Wal-Mart Stores Inc. and others, along with a tempered outlook for Asia and Eastern Europe.

Those sales rose 6 percent, meeting the high end of the March forecast.

Wal-Mart's plan to reduce what it calls ''clutter'' in its stores has also hit P&G's smaller rivals, such as Playtex Products Inc. and Spectrum Brands Inc.

P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 percent to $17.25 billion, while analysts had expected revenue of $17.52 billion.

Unit volume rose 22 percent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions and divestitures rose 5 percent.

Net sales rose in all of P&G's existing businesses except for baby care and family care, where sales slipped 1 percent to $3.03 billion, including a 3 percent hit from foreign exchange.

Net profit rose in all of the existing businesses.

For the current fiscal year, which ends in June, P&G forecast net sales growth of 19 percent to 20 percent and earnings per share of $2.61 to $2.63, up from a previous forecast of $2.58 to $2.62 per share. The forecast includes 19 cents to 23 cents of dilution related to Gillette.

Analysts, on average, expect a profit of $2.62 per share.

For its fiscal fourth quarter, P&G forecast net sales growth of 20 percent to 24 percent and earnings of 52 cents to 54 cents per share, including 6 cents to 9 cents of Gillette dilution. Analysts, on average, had expected the company to earn 55 cents per share in the quarter.

After the report, P&G's shares traded at $56.31 in premarket trading on Inet, down from Tuesday's closing price of $58.11.

Shares of P&G, a component of the Dow Jones industrial average .DJI>, fell nearly 1.2 percent during the quarter, while the overall index rose more than 3.6 percent.

P&G had 3.51 billion average shares outstanding in the quarter, up from 2.73 billion a year earlier. The company issued shares as part of the Gillette acquisition. P&G has also repurchased $15.8 billion worth of shares since the deal was announced and expects to repurchase about $20 billion in total by mid-calendar year 2006.

REUTERS SBJ KN1858 .21 billion, or 63 cents per share, in its third quarter, up from .61 billion, or 59 cents, a year earlier.

Analysts' average profit forecast was 61 cents per share, according to Reuters Estimates.

''They beat EPS, but questions on a decelerating top line, Gillette, and negatives earnings revisions are going to hit the stock,'' Bear Stearns analyst Justin Hott, who rates P&G ''peer perform,'' said in a research note.

In March, Cincinnati-based P&G said it expected to earn 59 cents to 61 cents per share in the quarter, including a hit of 7 cents to 10 cents from the acquisition of Gillette, which closed in October.

P&G on Wednesday estimated the hit from the Gillette acquisition was 7 cents to 8 cents per share. P&G also saw a penny per share benefit from a lower-than-expected tax rate.

Also in March, P&G gave a cautious quarterly sales forecast, excluding the impact of acquisitions, divestitures and foreign exchange, due to inventory cutbacks by Wal-Mart Stores Inc. and others, along with a tempered outlook for Asia and Eastern Europe.

Those sales rose 6 percent, meeting the high end of the March forecast.

Wal-Mart's plan to reduce what it calls ''clutter'' in its stores has also hit P&G's smaller rivals, such as Playtex Products Inc. and Spectrum Brands Inc.

P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 percent to .25 billion, while analysts had expected revenue of .52 billion.

Unit volume rose 22 percent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions and divestitures rose 5 percent.

Net sales rose in all of P&G's existing businesses except for baby care and family care, where sales slipped 1 percent to .03 billion, including a 3 percent hit from foreign exchange.

Net profit rose in all of the existing businesses.

For the current fiscal year, which ends in June, P&G forecast net sales growth of 19 percent to 20 percent and earnings per share of CHICAGO, May 3 (Reuters) Procter&Gamble Co. on Wednesday said quarterly profit jumped 37 percent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers.

But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street's targets and P&G's shares slipped 3 percent in premarket trading.

The maker of Crest toothpaste, Duracell batteries and a host of other products earned $2.21 billion, or 63 cents per share, in its third quarter, up from $1.61 billion, or 59 cents, a year earlier.

Analysts' average profit forecast was 61 cents per share, according to Reuters Estimates.

''They beat EPS, but questions on a decelerating top line, Gillette, and negatives earnings revisions are going to hit the stock,'' Bear Stearns analyst Justin Hott, who rates P&G ''peer perform,'' said in a research note.

In March, Cincinnati-based P&G said it expected to earn 59 cents to 61 cents per share in the quarter, including a hit of 7 cents to 10 cents from the acquisition of Gillette, which closed in October.

P&G on Wednesday estimated the hit from the Gillette acquisition was 7 cents to 8 cents per share. P&G also saw a penny per share benefit from a lower-than-expected tax rate.

Also in March, P&G gave a cautious quarterly sales forecast, excluding the impact of acquisitions, divestitures and foreign exchange, due to inventory cutbacks by Wal-Mart Stores Inc. and others, along with a tempered outlook for Asia and Eastern Europe.

Those sales rose 6 percent, meeting the high end of the March forecast.

Wal-Mart's plan to reduce what it calls ''clutter'' in its stores has also hit P&G's smaller rivals, such as Playtex Products Inc. and Spectrum Brands Inc.

P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 percent to $17.25 billion, while analysts had expected revenue of $17.52 billion.

Unit volume rose 22 percent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions and divestitures rose 5 percent.

Net sales rose in all of P&G's existing businesses except for baby care and family care, where sales slipped 1 percent to $3.03 billion, including a 3 percent hit from foreign exchange.

Net profit rose in all of the existing businesses.

For the current fiscal year, which ends in June, P&G forecast net sales growth of 19 percent to 20 percent and earnings per share of $2.61 to $2.63, up from a previous forecast of $2.58 to $2.62 per share. The forecast includes 19 cents to 23 cents of dilution related to Gillette.

Analysts, on average, expect a profit of $2.62 per share.

For its fiscal fourth quarter, P&G forecast net sales growth of 20 percent to 24 percent and earnings of 52 cents to 54 cents per share, including 6 cents to 9 cents of Gillette dilution. Analysts, on average, had expected the company to earn 55 cents per share in the quarter.

After the report, P&G's shares traded at $56.31 in premarket trading on Inet, down from Tuesday's closing price of $58.11.

Shares of P&G, a component of the Dow Jones industrial average .DJI>, fell nearly 1.2 percent during the quarter, while the overall index rose more than 3.6 percent.

P&G had 3.51 billion average shares outstanding in the quarter, up from 2.73 billion a year earlier. The company issued shares as part of the Gillette acquisition. P&G has also repurchased $15.8 billion worth of shares since the deal was announced and expects to repurchase about $20 billion in total by mid-calendar year 2006.

REUTERS SBJ KN1858 .61 to CHICAGO, May 3 (Reuters) Procter&Gamble Co. on Wednesday said quarterly profit jumped 37 percent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers.

But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street's targets and P&G's shares slipped 3 percent in premarket trading.

The maker of Crest toothpaste, Duracell batteries and a host of other products earned $2.21 billion, or 63 cents per share, in its third quarter, up from $1.61 billion, or 59 cents, a year earlier.

Analysts' average profit forecast was 61 cents per share, according to Reuters Estimates.

''They beat EPS, but questions on a decelerating top line, Gillette, and negatives earnings revisions are going to hit the stock,'' Bear Stearns analyst Justin Hott, who rates P&G ''peer perform,'' said in a research note.

In March, Cincinnati-based P&G said it expected to earn 59 cents to 61 cents per share in the quarter, including a hit of 7 cents to 10 cents from the acquisition of Gillette, which closed in October.

P&G on Wednesday estimated the hit from the Gillette acquisition was 7 cents to 8 cents per share. P&G also saw a penny per share benefit from a lower-than-expected tax rate.

Also in March, P&G gave a cautious quarterly sales forecast, excluding the impact of acquisitions, divestitures and foreign exchange, due to inventory cutbacks by Wal-Mart Stores Inc. and others, along with a tempered outlook for Asia and Eastern Europe.

Those sales rose 6 percent, meeting the high end of the March forecast.

Wal-Mart's plan to reduce what it calls ''clutter'' in its stores has also hit P&G's smaller rivals, such as Playtex Products Inc. and Spectrum Brands Inc.

P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 percent to $17.25 billion, while analysts had expected revenue of $17.52 billion.

Unit volume rose 22 percent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions and divestitures rose 5 percent.

Net sales rose in all of P&G's existing businesses except for baby care and family care, where sales slipped 1 percent to $3.03 billion, including a 3 percent hit from foreign exchange.

Net profit rose in all of the existing businesses.

For the current fiscal year, which ends in June, P&G forecast net sales growth of 19 percent to 20 percent and earnings per share of $2.61 to $2.63, up from a previous forecast of $2.58 to $2.62 per share. The forecast includes 19 cents to 23 cents of dilution related to Gillette.

Analysts, on average, expect a profit of $2.62 per share.

For its fiscal fourth quarter, P&G forecast net sales growth of 20 percent to 24 percent and earnings of 52 cents to 54 cents per share, including 6 cents to 9 cents of Gillette dilution. Analysts, on average, had expected the company to earn 55 cents per share in the quarter.

After the report, P&G's shares traded at $56.31 in premarket trading on Inet, down from Tuesday's closing price of $58.11.

Shares of P&G, a component of the Dow Jones industrial average .DJI>, fell nearly 1.2 percent during the quarter, while the overall index rose more than 3.6 percent.

P&G had 3.51 billion average shares outstanding in the quarter, up from 2.73 billion a year earlier. The company issued shares as part of the Gillette acquisition. P&G has also repurchased $15.8 billion worth of shares since the deal was announced and expects to repurchase about $20 billion in total by mid-calendar year 2006.

REUTERS SBJ KN1858 .63, up from a previous forecast of CHICAGO, May 3 (Reuters) Procter&Gamble Co. on Wednesday said quarterly profit jumped 37 percent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers.

But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street's targets and P&G's shares slipped 3 percent in premarket trading.

The maker of Crest toothpaste, Duracell batteries and a host of other products earned $2.21 billion, or 63 cents per share, in its third quarter, up from $1.61 billion, or 59 cents, a year earlier.

Analysts' average profit forecast was 61 cents per share, according to Reuters Estimates.

''They beat EPS, but questions on a decelerating top line, Gillette, and negatives earnings revisions are going to hit the stock,'' Bear Stearns analyst Justin Hott, who rates P&G ''peer perform,'' said in a research note.

In March, Cincinnati-based P&G said it expected to earn 59 cents to 61 cents per share in the quarter, including a hit of 7 cents to 10 cents from the acquisition of Gillette, which closed in October.

P&G on Wednesday estimated the hit from the Gillette acquisition was 7 cents to 8 cents per share. P&G also saw a penny per share benefit from a lower-than-expected tax rate.

Also in March, P&G gave a cautious quarterly sales forecast, excluding the impact of acquisitions, divestitures and foreign exchange, due to inventory cutbacks by Wal-Mart Stores Inc. and others, along with a tempered outlook for Asia and Eastern Europe.

Those sales rose 6 percent, meeting the high end of the March forecast.

Wal-Mart's plan to reduce what it calls ''clutter'' in its stores has also hit P&G's smaller rivals, such as Playtex Products Inc. and Spectrum Brands Inc.

P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 percent to $17.25 billion, while analysts had expected revenue of $17.52 billion.

Unit volume rose 22 percent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions and divestitures rose 5 percent.

Net sales rose in all of P&G's existing businesses except for baby care and family care, where sales slipped 1 percent to $3.03 billion, including a 3 percent hit from foreign exchange.

Net profit rose in all of the existing businesses.

For the current fiscal year, which ends in June, P&G forecast net sales growth of 19 percent to 20 percent and earnings per share of $2.61 to $2.63, up from a previous forecast of $2.58 to $2.62 per share. The forecast includes 19 cents to 23 cents of dilution related to Gillette.

Analysts, on average, expect a profit of $2.62 per share.

For its fiscal fourth quarter, P&G forecast net sales growth of 20 percent to 24 percent and earnings of 52 cents to 54 cents per share, including 6 cents to 9 cents of Gillette dilution. Analysts, on average, had expected the company to earn 55 cents per share in the quarter.

After the report, P&G's shares traded at $56.31 in premarket trading on Inet, down from Tuesday's closing price of $58.11.

Shares of P&G, a component of the Dow Jones industrial average .DJI>, fell nearly 1.2 percent during the quarter, while the overall index rose more than 3.6 percent.

P&G had 3.51 billion average shares outstanding in the quarter, up from 2.73 billion a year earlier. The company issued shares as part of the Gillette acquisition. P&G has also repurchased $15.8 billion worth of shares since the deal was announced and expects to repurchase about $20 billion in total by mid-calendar year 2006.

REUTERS SBJ KN1858 .58 to CHICAGO, May 3 (Reuters) Procter&Gamble Co. on Wednesday said quarterly profit jumped 37 percent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers.

But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street's targets and P&G's shares slipped 3 percent in premarket trading.

The maker of Crest toothpaste, Duracell batteries and a host of other products earned $2.21 billion, or 63 cents per share, in its third quarter, up from $1.61 billion, or 59 cents, a year earlier.

Analysts' average profit forecast was 61 cents per share, according to Reuters Estimates.

''They beat EPS, but questions on a decelerating top line, Gillette, and negatives earnings revisions are going to hit the stock,'' Bear Stearns analyst Justin Hott, who rates P&G ''peer perform,'' said in a research note.

In March, Cincinnati-based P&G said it expected to earn 59 cents to 61 cents per share in the quarter, including a hit of 7 cents to 10 cents from the acquisition of Gillette, which closed in October.

P&G on Wednesday estimated the hit from the Gillette acquisition was 7 cents to 8 cents per share. P&G also saw a penny per share benefit from a lower-than-expected tax rate.

Also in March, P&G gave a cautious quarterly sales forecast, excluding the impact of acquisitions, divestitures and foreign exchange, due to inventory cutbacks by Wal-Mart Stores Inc. and others, along with a tempered outlook for Asia and Eastern Europe.

Those sales rose 6 percent, meeting the high end of the March forecast.

Wal-Mart's plan to reduce what it calls ''clutter'' in its stores has also hit P&G's smaller rivals, such as Playtex Products Inc. and Spectrum Brands Inc.

P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 percent to $17.25 billion, while analysts had expected revenue of $17.52 billion.

Unit volume rose 22 percent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions and divestitures rose 5 percent.

Net sales rose in all of P&G's existing businesses except for baby care and family care, where sales slipped 1 percent to $3.03 billion, including a 3 percent hit from foreign exchange.

Net profit rose in all of the existing businesses.

For the current fiscal year, which ends in June, P&G forecast net sales growth of 19 percent to 20 percent and earnings per share of $2.61 to $2.63, up from a previous forecast of $2.58 to $2.62 per share. The forecast includes 19 cents to 23 cents of dilution related to Gillette.

Analysts, on average, expect a profit of $2.62 per share.

For its fiscal fourth quarter, P&G forecast net sales growth of 20 percent to 24 percent and earnings of 52 cents to 54 cents per share, including 6 cents to 9 cents of Gillette dilution. Analysts, on average, had expected the company to earn 55 cents per share in the quarter.

After the report, P&G's shares traded at $56.31 in premarket trading on Inet, down from Tuesday's closing price of $58.11.

Shares of P&G, a component of the Dow Jones industrial average .DJI>, fell nearly 1.2 percent during the quarter, while the overall index rose more than 3.6 percent.

P&G had 3.51 billion average shares outstanding in the quarter, up from 2.73 billion a year earlier. The company issued shares as part of the Gillette acquisition. P&G has also repurchased $15.8 billion worth of shares since the deal was announced and expects to repurchase about $20 billion in total by mid-calendar year 2006.

REUTERS SBJ KN1858 .62 per share. The forecast includes 19 cents to 23 cents of dilution related to Gillette.

Analysts, on average, expect a profit of CHICAGO, May 3 (Reuters) Procter&Gamble Co. on Wednesday said quarterly profit jumped 37 percent, as the addition of Gillette products to its lineup, along with price increases and cost cuts, offset higher commodity costs and inventory cutbacks by retailers.

But sales in the recent quarter and the profit forecast for the current quarter fell short of Wall Street's targets and P&G's shares slipped 3 percent in premarket trading.

The maker of Crest toothpaste, Duracell batteries and a host of other products earned $2.21 billion, or 63 cents per share, in its third quarter, up from $1.61 billion, or 59 cents, a year earlier.

Analysts' average profit forecast was 61 cents per share, according to Reuters Estimates.

''They beat EPS, but questions on a decelerating top line, Gillette, and negatives earnings revisions are going to hit the stock,'' Bear Stearns analyst Justin Hott, who rates P&G ''peer perform,'' said in a research note.

In March, Cincinnati-based P&G said it expected to earn 59 cents to 61 cents per share in the quarter, including a hit of 7 cents to 10 cents from the acquisition of Gillette, which closed in October.

P&G on Wednesday estimated the hit from the Gillette acquisition was 7 cents to 8 cents per share. P&G also saw a penny per share benefit from a lower-than-expected tax rate.

Also in March, P&G gave a cautious quarterly sales forecast, excluding the impact of acquisitions, divestitures and foreign exchange, due to inventory cutbacks by Wal-Mart Stores Inc. and others, along with a tempered outlook for Asia and Eastern Europe.

Those sales rose 6 percent, meeting the high end of the March forecast.

Wal-Mart's plan to reduce what it calls ''clutter'' in its stores has also hit P&G's smaller rivals, such as Playtex Products Inc. and Spectrum Brands Inc.

P&G, which also makes Tide laundry detergent, Folgers coffee and Olay beauty products, said total net sales jumped 21 percent to $17.25 billion, while analysts had expected revenue of $17.52 billion.

Unit volume rose 22 percent, driven by growth in existing businesses and the addition of Gillette. Volume excluding acquisitions and divestitures rose 5 percent.

Net sales rose in all of P&G's existing businesses except for baby care and family care, where sales slipped 1 percent to $3.03 billion, including a 3 percent hit from foreign exchange.

Net profit rose in all of the existing businesses.

For the current fiscal year, which ends in June, P&G forecast net sales growth of 19 percent to 20 percent and earnings per share of $2.61 to $2.63, up from a previous forecast of $2.58 to $2.62 per share. The forecast includes 19 cents to 23 cents of dilution related to Gillette.

Analysts, on average, expect a profit of $2.62 per share.

For its fiscal fourth quarter, P&G forecast net sales growth of 20 percent to 24 percent and earnings of 52 cents to 54 cents per share, including 6 cents to 9 cents of Gillette dilution. Analysts, on average, had expected the company to earn 55 cents per share in the quarter.

After the report, P&G's shares traded at $56.31 in premarket trading on Inet, down from Tuesday's closing price of $58.11.

Shares of P&G, a component of the Dow Jones industrial average .DJI>, fell nearly 1.2 percent during the quarter, while the overall index rose more than 3.6 percent.

P&G had 3.51 billion average shares outstanding in the quarter, up from 2.73 billion a year earlier. The company issued shares as part of the Gillette acquisition. P&G has also repurchased $15.8 billion worth of shares since the deal was announced and expects to repurchase about $20 billion in total by mid-calendar year 2006.

REUTERS SBJ KN1858 .62 per share.

For its fiscal fourth quarter, P&G forecast net sales growth of 20 percent to 24 percent and earnings of 52 cents to 54 cents per share, including 6 cents to 9 cents of Gillette dilution. Analysts, on average, had expected the company to earn 55 cents per share in the quarter.

After the report, P&G's shares traded at .31 in premarket trading on Inet, down from Tuesday's closing price of .11.

Shares of P&G, a component of the Dow Jones industrial average .DJI>, fell nearly 1.2 percent during the quarter, while the overall index rose more than 3.6 percent.

P&G had 3.51 billion average shares outstanding in the quarter, up from 2.73 billion a year earlier. The company issued shares as part of the Gillette acquisition. P&G has also repurchased .8 billion worth of shares since the deal was announced and expects to repurchase about billion in total by mid-calendar year 2006.

REUTERS SBJ KN1858