NEW YORK - Procter & Gamble Co. (PG) on Tuesday reported a boost in second-quarter profit that topped expectations as higher pricing and lower costs offset a decline in sales.
The world's largest consumer products maker has been trying to refocus its efforts on core brands by slimming down its offerings and cutting costs. The measures, meant to help the company regain its standing as a top competitor, helped push closely watched organic sales higher by 2 percent.
The world's largest consumer products maker reported a 35 percent boost in profit to $3.21 billion, or $1.12 per share. Earnings, adjusted to account for discontinued operations, were $1.04 per share.
The results beat Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 98 cents per share.
The maker of Pantene shampoo, Crest toothpaste and Charmin toilet paper reported a 9 percent drop in revenue to $16.92 billion as a stronger U.S. dollar cut into product sales. The results fell short of Street forecasts. Eight analysts surveyed by Zacks expected $16.96 billion.
But, product costs fell 11 percent to just under $8.5 billion while general expenses fell 14 percent to $4.6 billion, helping to offset the revenue decline.
Looking ahead, the Cincinnati-based company expects revenue to decline in 2016 because of a stronger dollar and brand divestments. But, it expects organic sales, which excludes foreign currency swings, to rise.
Shares of P&G rose $1.15 to $78 in premarket trading.
P&G shares have fallen 3 percent since the beginning of the year, while the Standard & Poor's 500 index has declined 8 percent. The stock has dropped 15 percent in the last 12 months.