Procter & Gamble earnings more than doubleStaff writer ▼ | January 25, 2013
P&G increased core earnings per share by 12 percent to $1.22 for the October – December quarter. Diluted net earnings per share were $1.39, an increase of 144 percent. Non-core items include restructuring charges of $0.05 per share and a $0.21 per share holding gain resulting from P&G’s purchase of the balance of P&G’s Baby Care and Feminine Care joint venture in Iberia, which was completed on October 22, 2012.
Organic sales grew three percent. Net sales were $22.2 billion, an increase of two percent versus the prior year period including a negative one percent impact from foreign exchange. The Company delivered broad-based organic sales growth, with all business segments increasing organic sales by two percent or more versus the prior year.
P&G held or grew market share in businesses representing nearly 50 percent of sales in the October - December quarter, as measured on a constant currency value basis. In the U.S. market, P&G held or grew value share in businesses representing nearly 60 percent of sales.
"Our second quarter results were at the high end of our expectations on the top-line and well ahead of forecast on operating profit, earnings per share and cash flow. Our strong first half results have enabled us to raise our sales, earnings and share repurchase outlook for the fiscal year, while we strengthen investments in our innovation and marketing programs," said Bob McDonald, chairman, president, and chief executive officer.
The company increased its core earnings per share guidance for the year to $3.97 to $4.07, up 3% to 6% versus prior year core EPS of $3.85, behind strong productivity improvement and resulting cost savings. Procter & Gamble also raised its all-in GAAP earnings per share guidance to a range of $4.04 to $4.14, equating to growth of 10 percent to 13 percent versus prior year GAAP EPS of $3.66. ■