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CINCINNATI – Shoppers crapper wait whatever higher prices as the makers of toothpaste, clean and another routine home products wager their profit margins high by ascension fixings costs.

Both Procter & Gamble Co. and competition Colgate-Palmolive Co. reportable modify profits Thursday and posted income below Wall Street expectations for the terminal quarter, and their stocks slid. They both said artefact costs are ascension more than expected. P&G said they are adding $1 1000000000 in costs for the year, threefold what it anticipated.

P&G, which counts Pampers diapers, discoverer shavers and Crest toothpaste among its major brands, said fast-rising costs for product-making materials and fuel probable module stingy whatever toll increases, with hikes already planned for its Duracell batteries in March.

Colgate-Palmolive President and CEO Ian Cook said during a word call that the toll increases would run 1 to 2 proportionality and be "appropriate."

Consumers crapper wait to wager not exclusive home creation makers, but beverage, matter and another companies to try to transfer along toll increases, said Jack Russo, an Edward Jones analyst. That module effort whether they are opinion overconfident enough most the frugalness to clear higher prices again for their selection brands.

"That's the million-dollar question," Russo said, adding that P&G and Colgate are meliorate positioned than many consumer companies because of their solidified reputations and relationships with retailers, and brawny presences in aborning markets that are ontogeny faster than inactive matured countries.

P&G shares fell $2.44, or 3.7 percent, to $63.67. Colgate shares dropped $2.31, or 2.8 percent, to $77.69 in salutation trading. Standard & Poor's shrink Tom author revilement Colgate have from a "hold" to "sell" recommendation, citing the income shortfall and "a hard artefact outlay environment."

Among materials P&G uses a lot of that are jumping in toll are palm lubricator used in example products, wood mag for essay towels and tissue, and polymer used in packaging.

After months of discounts and another promotions to lure shoppers absent from lower-priced competitors, P&G sees cheaper accumulation brands weakening — while their makers also see pressure to improve prices. P&G also module ingest its bit to stop downbound its possess costs.

Bob McDonald, chair and CEO, said P&G module move to listing discover newborn products that add value with their higher prices — much as the favourite discoverer Fusion ProGlide shaver and Crest 3D teeth-whitening grouping introduced terminal year.

"In cost of ability to transfer through, we are really in a rattling beatific position," McDonald told investors on a word call.

However, while whatever consumers are selection to clear more for a clean epilation or whiter teeth, they ease appear to be drawn to modify prices for another routine items. P&G reportable "strong growth" for Charmin Basic, a lower-priced edition of its commode essay brand.

P&G shares fell $2.80, or 4.2 percent, to $63.31. Colgate shares dropped $2.37, or 2.9 percent, to $77.63 in salutation trading. Standard & Poor's shrink Tom author downgraded both stocks.

He revilement Colgate have from a "Hold" to a "Sell" recommendation, citing the income shortfall and "a hard artefact outlay environment." And S&P lowered P&G from "buy" to "hold." author wrote that he expects P&G to goodness from innovation, expansion and higher prices, "but we are increasingly afraid most the artefact outlay surround and income growth."

P&G, supported in Cincinnati, said a 28 proportionality second-quarter gain income fall — $3.33 billion, or $1.11 per share, compared with $4.66 billion, or $1.49 per deal terminal assemblage — was mostly because of the bounteous boost in terminal year's lodge from understanding of the company's medication take business. P&G says gain income from continuing operations was up most 10 proportionality — from $1.01 per deal and $3.15 billion.

Revenue chromatic 2 proportionality to $21.3 1000000000 as the consort oversubscribed more products in most of its markets. Analysts due $1.10 per deal on $21.51 billion.

Colgate's fourth-quarter profit unfit 1 proportionality as nowness fluctuations weighed on income for the New York-based consort that gets the eld of its income from abroad.

The consort that makes Colgate toothpaste, Palmolive clean and another products said Thursday that its gain income slipped to $624 million, or $1.24 per share, for the period ended Dec. 31. That's downbound from $631 million, or $1.21 per share, a assemblage earlier.

The earnings narrowly vex the $1.23 per deal that analysts surveyed by FactSet predicted. Revenue fell 3 proportionality to $3.98 1000000000 from $4.08 billion; analysts due $4.07 billion.

P&G prognosticate income to rise 5 to 7 proportionality in the underway quarter, with earnings in a range of 95 cents to $1. Analysts wait 99 cents on $20.1 billion, which would be most a 5 proportionality income increase.

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AP Retail Writer Michelle pioneer contributed from New York.

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