P&G’s Net Soars in Q4

Procter & Gamble Co. (NYSE:PG) reported fourth quarter net income far above Wall Street’s expectations. Net income jumped 74% to $3.63 billion, as revenue fell 1.2% to $20.2 billion.

“We enter fiscal 2013 with very strong developing market momentum, strengthened plans on our core developed market business, and with the benefit of a $10 billion cost savings program, which is well underway,” said Chairman, President and Chief Executive Officer Bob McDonald. “Despite a difficult macro environment, we see significant opportunities for top- and bottom-line growth.”

For the year, net sales increased 3% to $83.7 billion. Unit volume was flat. Organic sales grew 3%. Price increases across all segments improved net sales by 4%, partially offset by unfavorable geographic and product mix which reduced net sales by 1%. Diluted net earnings per share fell 7% to $3.66 a share.

Gross margin contracted 160 basis points due mainly to higher commodity costs, unfavorable geographic and product mix and restructuring charges, which were partially offset by positive pricing and cost savings, according to P&G.