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P&G, Colgate: On track
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December 12, 2000: 11:29 a.m. ET
Leading consumer-products makers affirm profit outlooks, stocks rise
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NEW YORK (CNNfn) - Shares of Procter & Gamble and Colgate-Palmolive rose sharply on Tuesday after the two leading consumer-product companies reaffirmed their optimistic outlook for quarterly earnings.
Colgate-Palmolive shares jumped 5 percent to $59.41 a share, boosted by the company's affirmation of Wall Street analysts' estimates. According to earnings tracker First Call, Colgate, known for such staples as Ajax cleaning products and Colgate toothpaste, analysts see fourth-quarter profits at 45 cents a share and 2000 fiscal-year earnings at $1.69 a share.
"Operating profits will be up nicely," said Reuben Mark, Colgate chairman and chief executive, in a statement. "We expect another good quarter, with unit volume up in every operating division, solid upward movement in gross profit margin and a worldwide increase in advertising support."
Procter & Gamble, maker of Tide detergent, Crisco cooking oil and Crest toothpaste, also stood behind its previous guidance, and its stock climbed to $72.81, also up 5 percent. In a federal filing, it stated that it "continues to be comfortable" with estimates that earnings per share for the second quarter, which ends in December, would be in the range of 91 cents to 93 cents, on par with First Call's estimate of 92 cents.
In addition, the company estimated that fiscal 2001 earnings per share would increase 7 to 10 percent. Analysts surveyed by First Call had expected a profit of $3.15 a share for the fiscal year, which ends in June.
Strength in shares of Proctor & Gamble (PG: Research, Estimates) and Colgate (CL: Research, Estimates), help energize the influential Dow Jones Industrial average, of which both stocks are a component. The Dow climbed about 56 points to 10,782 in late-morning trade on Tuesday.
Investors seeking a safe haven from the volatility of the technology market and the uncertainty sparked by the presidential election and the slowing economy have flocked to so-called "staple" stocks such as Colgate and Proctor & Gamble.
Even in uncertain times, consumers are unlikely to stop buying personal grooming and home-cleansing items such as soap and toothpaste. P&G is the No. 1 U.S. maker of household products, although Colgate is the top seller of toothpaste. 
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