P&G's quarterly profit jumps 37 pct on cost cuts


Procter & Gamble Co <PG.N>, the world's largest household products maker, reported a 37 percent rise in quarterly profit as its cost cutting efforts paid off and organic sales rose in its home care business.

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Shares of the maker of Pampers diapers and Tide detergent rose more than 2 percent before the bell.

P&G has sought to cut expenses by streamlining management, lowering overhead and marketing costs, and cutting jobs under a five-year, $10 billion restructuring plan announced in February 2012.

The company's operating expenses fell 7 percent $6.28 billion in the fourth quarter ended June 30.

Organic sales, which excludes the impact of divestitures and acquisitions, rose 1 percent in P&G's fabric care and home care division.

The business, which is the company's largest revenue contributor, sells products such as Febreze air freshener and Duracell batteries.

Total organic sales rose 2 percent, but currency headwinds wiped out the gains. Net sales fell 1 percent to $20.16 billion.

Net profit attributable to the company rose to $2.58 billion, or 89 cents per share, from $1.88 billion, or 64 cents per share, a year earlier.

P&G's core earnings, which excludes one-time items, was 95 cents per share.

Analysts on average expected the company to earn 91 cents per share on revenue of $20.48 billion, according to Thomson Reuters I/B/E/S.

P&G's shares were up 2.2 percent at $78.99 in premarket trading on Friday.