P&G First Quarter Sales Exceed Expectations

The Procter & Gamble Company (P&G) reported net sales of $19.8 billion for the July-September quarter, which exceeded the company’s guidance. This was a decrease of 6% that was primarily due to unfavorable foreign exchange impacts as the U.S. dollar remained above prior year levels. However, the company had previously guided to a net sales decrease of 7-10% in reports.

Organic sales growth was up 2% versus a guidance range of flat to -3% on better than expected results across most business segments, said the company.

P&G raised its outlook for the October-December quarter and fiscal 2010 organic sales growth citing modestly higher expectation for market growth.

“Our September quarter results give us encouragement we are making the right choices to grow market share profitably,” said President and Chief Executive Officer Bob McDonald. “We are investing in innovation, expanding our portfolio and improving consumer value to serve more consumers, in more parts of the world, more completely. We are driving simplification and improving execution while leveraging scale to create cost efficiencies that help fund these investments and accelerate growth.”

Beauty net sales were down 5% for the quarter to $4.9 billion. Net earnings decreased 1% for the quarter to $777 million.

Fabric care and home care net sales fell 5% to $6.1 billion for the quarter. Fabric care volume was down low single digits due to trade inventory reductions in North America and global market share declines, partially offset by the new product launches and growth in Western Europe behind incremental merchandising activities. Home care volume grew mid-single digits primarily due to new initiative launches in North America and Western Europe.