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Procter & Gamble 2Q profit falls, tops estimates

Published on NewsOK Modified: January 24, 2014 at 9:05 am •  Published: January 24, 2014
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CINCINNATI (AP) — Procter & Gamble's second-quarter net income fell 16 percent as the world's largest consumer products maker faced a tough comparison with year ago results, the stronger dollar and nearly flat sales globally.

But its adjusted earnings beat Wall Street expectations and the company reiterated its 2014 guidance. Its shares rose 3 percent in morning trading.

The Cincinnati-based company, whose products range from Tide detergent to Crest toothpaste and Gillette razors, is in the midst of a turnaround plan that includes focusing on its most profitable core businesses and cutting costs to save $10 billion by fiscal 2016.

Net income for the three months ended Dec. 31 fell to $3.43 billion, or $1.18 per share. That's down from $4.06 billion, or $1.39 per share, last year. The results a year ago included a 21 cent per share gain related to acquiring the rest of its joint venture in Iberia.

Procter & Gamble, like other consumer products makers, has been trying to drive market share amid slow growth in developed markets. Emerging markets have been a growth driver, but there have been signs that the emerging market growth rate is slowing too. P&G said its sales results were in line with the overall consumer products market growth, from flat to up 1 percent in developed markets and up 7 to 8 percent in developing markets. Its market share growth overall was flat, and it held or grew market share in about 55 percent of its product and country categories.

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