By  on September 11, 2009

Procter & Gamble Co. Thursday lifted its full-year earnings guidance and said that it expects sales to rebound this fall as it cuts prices, invests in new products and continues restructuring.

The news sent P&G shares up $2.28, or 4.2 percent, to $56.04 at the end of trading Thursday. The company offered its revised outlook at the Barclay Capital Back-to-School Consumer Conference in Boston.

The Cincinnati-based firm said it anticipates organic sales growth to return in the second quarter to between 1 and 4 percent, following two quarters of declines. But for the current quarter, P&G forecasts organic sales to be in the flat to down 3 percent range. Earnings are still expected to be 95 cents to $1 a share. Analysts are looking for 97 cents.

“We clearly see that we are approaching an inflection point in P&G’s organic sales trends,” said chief financial officer Jon Moeller. “The innovations we are launching and the investments we are making are having an impact in the market. In addition, prior-year results will get easier as we move into the second quarter.”

The maker of household and beauty products reaffirmed fiscal 2010 sales guidance of flat to up 3 percent, as well as the outlook for organic sales growth of 1 to 3 percent. Full-year earnings guidance was raised to $3.99 to $4.12 a share, up from $3.65 to $3.80 a share, due largely to the $3.1 billion sale of its pharmaceutical business to Ireland’s Warner Chilcott plc announced last month.

P&G said it would report first-quarter results on Oct. 29.

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