P&G Earnings Drop 28% in 2Q

Jan. 27, 2011
However, net sales worldwide were up 2% to $21.3 billion.

Procter & Gamble said on Jan. 27 that while net earnings dropped 28%, net earnings from continuing operations rose 6% as it expanded sales and market share worldwide.

Net earnings for the three months that ended December 31 were $3.33 billion, down from $4.66 billion a year earlier. But the 2009 second quarter included $1.5 billion from discontinued operations; with this component removed, earnings jumped 6%.

Net sales worldwide were up 2% to $21.3 billion. The company said higher raw material costs and "unfavorable product mix" forced its operating margins to shrink 2.1%.

But it claimed solid growth in key markets and for its key brands.

"Volume was up 6% behind growth in all major geographic regions, 16 of 17 top countries, five of six business segments and 19 of 23 billion-dollar brands," the giant consumer goods company said.
"This is driving strong volume and sales growth ahead of market levels," said chief executive Bob McDonald.

"Core EPS is ahead of year-ago levels, and we are on track to deliver seven to nine percent growth for the year."

Copyright Agence France-Presse, 2011

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