The Procter & Gamble Company (NYSE:PG) increased organic sales for the April-June quarter by three percent driven by price increases, partially offset by geographic mix. Net sales were $20.2 billion, a decrease of one percent versus the prior year period. Foreign exchange reduced net sales by four percent. The Company continued to deliver broad-based organic sales growth, with four of five business segments increasing versus the prior year.
Diluted net earnings per share from continuing operations were $0.74, including non-core charges of $0.08 per share. Core net earnings per share were $0.82, consistent with the prior year period and $0.03 per share above the top-end of the Company’s guidance range. Additionally, P&G completed the sale of the Snacks business in the quarter, resulting in a net gain of $0.48 per share.
“We enter fiscal 2013 with very strong developing market momentum, strengthened plans on our core developed market business, and with the benefit of a $10 billion cost savings program, which is well underway,” said Chairman, President and Chief Executive Officer, Bob McDonald. “Despite a difficult macro environment, we see significant opportunities for top- and bottom-line growth.”
- Organic sales increased three percent for the quarter.
- Organic sales growth was broad-based, with four of five business segments increasing organic sales.
- Core operating profit increased four percent. Including non-core charges, operating profit decreased four percent.
- Core net earnings per share were in line with the prior year period at $0.82. The benefits from cost savings and pricing were offset by the decrease in net sales and higher commodity costs.
- Diluted net earnings per share were $1.24, an increase of 48 percent due to the gain on sale of the Snacks business, partially offset by non-core charges. The non-core items included incremental restructuring charges due to the productivity and cost savings plan.
- Diluted net earnings per share from continuing operations were $0.74, a decrease of 10 percent due to non-core restructuring charges.
- Operating cash flow was $4.0 billion for the quarter and free cash flow, which is operating cash flow less capital spending, was $2.7 billion. Adjusted free cash flow productivity was 142 percent of net earnings.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV