Procter & Gamble Co. (NYSE: PG) managed to turn in a profit gain of less than 2%, due to lower expenses — a theme that is very common yet again this earnings season. Unfortunately, its revenue was basically flat, if you include the change in foreign exchange and currencies.

P&G turned in a profit of some $2.61 billion, or $0.90 per share. This was up from the $2.57 billion a year ago, and up from $0.88 per share a year ago as well. If you back out the special and unusual items for its core operating earnings, this figure (used by analysts) rose to $1.04 per share in the first quarter, versus $0.99 a year ago. Revenues were $20.56 billion, but organic sales were said to be up 3% in a comparable basis.

The Thomson Reuters consensus was $1.01 in earnings per share, with expectations of $20.68 billion in revenue. What seems to have helped the most was that SG&A (selling, general and administrative) expenses were down by about 5% to $6.5 billion.

P&G further said that on a currency-neutral basis, core earnings rose by 17% per share for the first quarter.

Unfortunately, this is just another example of how a company is growing only by cost cutting and expense management. Chairman, President and Chief Executive Officer A.G. Lafley even started his quote out by saying:

We’re operating in a slow-growth, highly competitive environment, which places even greater importance on strong innovation and productivity improvement.

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For 2014 guidance, P&G continues to expect organic sales growth of 3% to 4%. Its “all-in sales growth” is expected to be approximately 1%, including a negative foreign exchange impact of 2% to 3%. P&G’s core earnings per share are expected to grow 3% to 5%for 2014, with earnings per share growth of 1% to 4%.

P&G shares were down more than 1.5% at $80.28 in the early trading indications.

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