Procter & Gamble (PG) was not joining in the party that erupted on Wall Street after European leaders came to a bailout and bank recapitalization, as the consumer products giant met expectations by raising prices in a difficult economic environment. Shares dipped slightly in pre-market trading even as Dow futures soared 230 points.
P&G posted $1.03 in EPS, in line with analysts’ expectations, on $21.92 billion in revenue against expectations for $21.53 billion. Organic sales rose 4%, at the high end of the company’s forecast. The company raised prices on most of its brands and its sales volume also grew 2%. But gross margin slid to 49.5% from 51.9%. The company maintained its full-year EPS guidance.
“We maintained strong top-line growth momentum in a difficult operating environment. We are well positioned � due to continued top-line strength, recently implemented price increases and our productivity improvement and cost savings efforts � to improve earnings growth as we progress through the fiscal year,” said CEO Bob McDonald.
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