2014-01-24 10:22 PM
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 flat sales globally.
But its adjusted earnings beat Wall Street expectations and the company reiterated its 2014 guidance. Its shares edged higher in premarket 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.
The company 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.
Excluding restructuring costs in the latest period, earnings were $1.21 per share, a penny above expectations of analysts surveyed by FactSet.
Revenue rose less than 1 percent to $22.28 billion, short of the $22.34 billion analysts expected.
The company reiterated that it expects 3 percent to 4 percent sales growth excluding acquisitions and currency exchange, and 5 percent to 7 percent earnings per share growth, excluding one-time items.
Shares rose 71 cents to $78.95 in premarket trading.