US consumer products giant Procter & Gamble reported a jump in second-quarter earnings Tuesday, despite a strong dollar that continued to depress the value of foreign sales. Net income of $3.21 billion was up 35.1 percent from the year-ago period as it cut costs and focused on products with higher profit margins.
Earnings were $1.12 per share, while core EPS was $1.04, beating the 98 cents projected by analysts. Revenues slumped nine percent to $16.9 billion in the quarter ended in December, in line with expectations. The Cincinatti, Ohio-based company said the decline was mainly due to the stronger dollar and a smaller impact from changes in its accounting of the Venezuela business following foreign exchange policy changes in the South American country.
But stripping out the foreign exchange factor and investments and divestitures, so-called "organic" sales increased two percent. "We are encouraged by our return to organic sales growth in the quarter," said David Taylor, the company's new president and chief executive, in a statement. "With the top-line improvement and continued cost reduction, we delivered solid core operating income and EPS growth in the face of significant macroeconomic and geopolitical headwinds." Taylor took the helm of P&G on November 1, succeeding AG Lafley who led the company's restructuring focused on strengthening its brand portfolio.
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