P&G reports flat profit, buys Merck health unit

NEW YORK— Procter & Gamble Co. reported flat fiscal thirdquarter profit as it faces increased competition for consumer products such as shaving cream and household goods.

The Cincinnati company also said it is paying $4.2 billion (U.S.) for Merck KGaA’s consumer health unit, adding products and geographic reach.

Products include nutritional supplements for pregnant women, cod liver oil capsules and back pain balm.

P&G’s profit in the three months ended March 31 remained essentially flat at $2.51 billion, though it rose two cents on a per-share basis to 95 cents. Earnings, adjusted for restructuring costs and pretax expenses, were $1 per share.

Revenue rose 4 per cent to $16.28 billion.

Both figures topped Wall Street expectations.

Revenue was driven mainly by a boost in beauty product sales, helping to offset price reductions for its shaving products. P&G moved to cut prices on items including razor blades and shaving cream as it faces increased competition in that sector. President and CEO David Taylor said the company is facing a challenging “macro environment” and that markets it operates within are being transformed.

Looking ahead, the company adjusted its earnings guidance and now expects a 6-per-cent to 8-per-cent boost.

Previously, it forecast a 5-percent boost at the low end of the range.