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P&G's Sales Flat, Net Earnings Soar

January 20, 2017

Volume up, but forex dampens results

Procter & Gamble said volume rose 1% during its second quarter ended Dec. 31, 2016, but forex effects resulted in flat sales of $16.9 billion, However, net earnings soared 145% to nearly $7.9 billion. While health care sales rose 5% to nearly $2.1 billion during the period, beauty, grooming, fabric & home care, and baby, feminine & family care businesses all reported a 1% decline in sales.

“We delivered good results in the second quarter in a difficult operating environment,” said Chairman, President and Chief Executive Officer David Taylor. “Stronger top-line performance in the first half of the fiscal year is enabling us to increase our organic sales growth outlook for the full year - another step towards the levels of balanced top-line, bottom-line, and cash flow growth that will consistently put P&G shareholder value creation among the best in our industry.”

For the six months, sales were flat at $33.3 billion, while net earnings jumped 82% to $10.6 billion. Beauty care sales fell 1% to $5.9 billion, grooming sales declined 1% to $3.4 billion, health care sales were up 4% to $3.9 billion, fabric & home care sales were flat at $10.5 billion, and baby, feminine & family care sales fell 1% to $9.2 billion.