Procter & Gamble earnings down as sales fall

Procter and Gamble, the consumer products company, said Thursday its fiscal first quarter profits fell 6.7 percent from slumping sales and hits from foreign exchange shifts. P&G said net earnings in the quarter to September 30 fell to $2.8 billion from $3.0 billion a year earlier, driven by a 3.7 percent fall in sales to $20.7 billion. Basic earnings per share came in at $1.00, down from $1.08 a year ago. The company said net sales growth in its beauty and groomings products businesses, which include brands like Wella, Gillette and Pantene, fell seven percent after a "significant" negative impact from foreign exchange. Its health care business, with brands like Tampax and Always, was down four percent, and baby care sales were off two percent. But the company maintained its forecasts for the coming year of two to four percent organic growth, though it warned that foreign exchange losses could take a two to three percentage point hit out of this. "Our first quarter results put us on track to deliver our commitments for the fiscal year," said chief executive Bob McDonald. "Results were at the high end of expectations on the top line and ahead of plan on operating profit, earnings per share and cash."