Procter & Gamble

(PG) - Get Report

said earnings in its fiscal first quarter rose 9% to $3.35 billion, or $1.03 a share, from $3.08 billion, or 92 cents a share, a year earlier as sales rose 9%.

Analysts surveyed by

Thomson Reuters

expected the company to earn 98 cents a share in the quarter.

Sales were $22.03 billion, compared with year-earlier sales of $20.2 billion on growth in the company's beauty, fabric care and home care, and baby care and family care segments. Organic sales rose 5%. The company's target range was 4% to 6%.

The consumer products company said operating margin in the first quarter declined 60 basis points as higher commodity costs offset a reduction in selling, general and administrative expenses.

The company widened its fiscal-year earnings outlook to $4.15 to $4.25 a share, maintaining the high end of its previous outlook. The outlook includes a gain of about 50 cents a share from the Folgers transaction and about 12 cents a share from restructuring charges.

For the fiscal year, P&G said it expects organic sales to increase by 4% to 6%, in line with its long-term target range and unchanged versus prior guidance. The company said a combination of pricing and product mix is expected to impact sales growth by a positive 2% to 3%.

Second-quarter earnings are expected to be $1.45 to $1.50 a share, P&G said. Organic sales are seen rising by 4% to 6%.

The company said it maintains credit ratings in the top 5% of all publicly traded companies.

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