The results are the first since Chief Executive Officer A.G. Lafley rejoined P&G two months ago.
P&G reported net income that fell 48% to $1.88 billion, or 64 cents a share, from the same period a year ago. Excluding items, P&G said its profit came to 79 cents a share, beating analysts' estimates of 77 cents, according to Thomson Reuters.
Sales rose 2.2% during the period to $20.66 billion, surpassing analysts' expectations of $20.55 billion.The company has been in the midst of a turnaround plan that has reorganized its product segments and aims to save $10 billion in costs by fiscal 2016. Lafley, who was previously CEO of P&G from 2000 to 2009, returned to the helm on May 23, replacing CEO Bob McDonald. Looking ahead, the company said it expects fiscal-year earnings of $4.25 a share to $4.33 a share, a rise of 5% to 7%. Analysts expect earnings of $4.32 a share.
Royal Dutch Shell (RDS.A - Get Report) reported a 20% drop in second-quarter earnings, as challenges in Nigeria and impairment charges weighed on results. Shell reported profit that fell to $4.6 billion during the quarter, excluding items, from $5.7 billion a year ago. The results missed analysts' expectations for profit of $6 billion and was the company's largest miss since 2008. The company reported net profit of $1.74 billion, down from $4.08 billion in the same period last year, dragged down by a $2.2 billion impairment charge on its shale oil assets in North America. The oil company has also experienced losses in Nigeria due to theft and other attacks on its operations. CEO Peter Voser, who is set to retire next year, also attributed higher costs, exploration charges and adverse currency exchange rate effects to the lower-than-expected results. Voser will be replaced by Ben van Beurden, who currently is the head of the company's refining and chemicals marketing businesses.