Procter & Gamble Co. (PG) said its fourth-quarter profit
rose 38% as the world's largest consumer products maker continued
to cut costs, while organic sales improved slightly.
For the recently started new fiscal year, the company expects
core earnings per share to grow in the range of mid-single digits,
while net sales growth is expected to be in the low single digit
range. Analysts polled by Thomson Reuters were looking for
per-share earnings growth of 7.6% and revenue growth of 2.6%.
The maker of Tide detergent, Pampers diapers and Olay skin
creams has sought to accelerate cost cuts, increase productivity
gains and sharpen its focus on some of its biggest brands as it
tries to improve profitability and catch up with the faster growth
rates of rivals.
However, currency swings and lackluster growth in certain
product categories have hindered the progress of those efforts.
Chief Executive A.G. Lafley said in a statement Friday that the
company still has "more work to do to deliver the profitable sales
growth and strong cash productivity we are capable of
delivering."
Overall, P&G reported a profit of $2.58 billion, or 89 cents
a share, up from $1.88 billion, or 64 cents a share, a year
earlier. Excluding special items such as restructuring charges, the
impact of the devaluation of Venezuela's currency, among other
things, core earnings rose to 95 cents a share from 79 cents.
Sales edged down 0.1% to $20.18 billion. Organic sales, which
exclude impacts from currency movements and acquisitions and
divestitures, grew 2%.
Analysts polled by Thomson Reuters had expected earnings of 91
cents a share and revenue of $20.48 billion.
Gross margin narrowed to 47.2% from 47.9% as input costs edged
up 0.6% to $10.64 billion.
The company is almost more than three years into a five-year
cost cutting plan, which has so far enabled its profits to grow
faster than sales. Selling, general and administrative expense
decreased 5.1% to $6.41 billion.
Write to Anna Prior at anna.prior@wsj.com
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