Earnings report: P&G records 16% net surge, citing cost cuts, Clairol buy; Tricon Global beats the Street; media mixed.(Brief Article)

Advertising Age, May, 2002 by Cardona, Mercedes M.

In a positive sign for the advertising market, Procter & Gamble Co. said it increased marketing spending last quarter and vowed to boost marketing efforts in the year ahead,

P&G, the nation's No. 2 advertiser, said earnings for the fiscal third quarter ended March 31 rose 16% to $1 billion vs. a year ago, largely due to cost reductions and the impact of the company's November acquisition of Clairol hair-care products. Unit volume growth was up 10%, while revenue rose 4% to $9.9 billion. Clairol accounted for all of the quarter's gain in dollar sales.

Chief Financial Officer Clayton Daley said marketing spending for the quarter was up both in absolute terms and as a percent of sales as P&G incorporated the more marketing-intensive Clairol business. He...

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