Consumer products maker Procter & Gamble raised its quarterly outlook due to strong sales volume in several businesses and to more favorable currency translations.
P&G is undergoing a massive restructuring after years of seeing profit pressured by high costs, currency weakness in overseas markets and a lack of focus on its major brands.
P&G said it expects a high-teen percentage increase in earnings before restructuring items for the fourth quarter ending on June 30th, up from the low-teens growth rate it forecast in late April.
Earnings should also exceed Wall Street estimates, the company said. Analysts on average forecast earnings of 72 cents per share for the quarter, with estimates ranging from 70 cents to 73 cents, according to research firm Thomson First Call.
Before the market opened, P&G shares rose to $90.80 on Instinet, up 2 per cent from yesterday's close of $89 on the New York Stock Exchange.
P&G forecast a 9 per cent to 10 per cent rise in volume, a measure of units sold that excludes foreign exchange and price fluctuations. That's up from an April forecast of high-single-digit percentage growth.
The company said volume is benefiting from its Clairol hair-care business, acquired last year, and strong sales in beauty care, fabric and home care and health care.
P&G raised its sales growth outlook for the quarter to a mid-to-high single-digit percentage rate, excluding foreign exchange, from the mid-single digits.
Exchange rates will still cut reported sales by 1 percent to 2 per cent, but that rate is less than expected as the euro and yen have strengthened during the quarter, the company said.
Since the beginning of the year, P&G stock has rallied more than 13 per cent as sales and unit volume have shown double-digit gains, helped by the Clairol acquisition. The stock has outperformed the Dow Jones Industrial Average, which has fallen about 5 per cent.