Procter & Gamble's third quarter profits up 6%

Wednesday 24 April 2013 13.02
Procter & Gamble's quarterly revenue falls short of expectations
Procter & Gamble's quarterly revenue falls short of expectations

Procter & Gamble said its net income rose 6% in the fiscal third quarter, as the company cut costs and gained market share in North America.

But revenue fell short of analyst expectations.

P&G also issued a weak fourth-quarter earnings outlook, as it is facing a weakened European economy and slowdown in China.

The US-based company's products range from Crest toothpaste and Gillette razors.

The world's largest consumer product maker said net income for the three months from January to March rose to $2.57 billion, or 88 cents per share.

That compares with net income of $2.41 billion, or 82 cents per share last year.

Excluding restructuring charges and related to the devaluation of the Venezuelan currency, earnings totaled 99 cents per share. Analysts had expected earnings of 96 cents.

"Strong cost savings enabled us to exceed our outlook on the bottom line," chief executive Bob McDonald said in a statement.

P&G is aiming to save $10 billion by 2016. Last year, it admitted mistakes in some emerging markets - which make up nearly 40% of its sales - when it expanded in certain product areas too quickly.

But it then introduced a plan to focus on its 20 biggest new products and its 10 most-profitable emerging markets in an effort to gain more market share.

Revenue in the three month period rose 2% to $20.6 billion. That fell short of analyst expectations of $20.72 billion.

The company said it held or increased market share in categories representing more than 50% of its sales globally and two-thirds of its sales in the US.

The company expects fourth-quarter net income of 69 cents to 77 cents per share, excluding one-time items. Analysts expect 82 cents per share.