Procter and Gamble posts 35% earnings jump

US consumer products giant Procter and Gamble reported a jump in second-quarter earnings Tuesday, despite a strong dollar that continued to depress the value of foreign sales.

Net income of $3.21 billion was up 35.1 percent from the year-ago period as the company cut costs and focused on products with higher profit margins.

Adjusted earnings were $1.12 per share, a gain of 37 percent and solidly beating the 98 cents projected by analysts.

Revenues slumped nine percent to $16.9 billion in the quarter ended in December, mainly due to the impact from the stronger dollar. The sales number was in line with expectations.

But stripping out the foreign exchange factor and investments and divestitures, so-called "organic" sales increased two percent.

"We are encouraged by our return to organic sales growth in the quarter," said David Taylor, the company's new president and chief executive, in a statement.
"With the top-line improvement and continued cost reduction, we delivered solid core operating income and EPS growth in the face of significant macroeconomic and geopolitical headwinds."

The maker of Tide detergent, Crest toothpaste and Pampers diapers said it had bought back $2.0 billion of common stock and paid $1.9 billion in dividends to shareholders in the quarter.

Shares in Dow member P&G rose 1.1 percent to $70.70 in pre-market trade.