The Procter & Gamble Company (NYSE: PG) has reported earnings, and the company managed to increase organic sales for the quarter by 3%. That was said to be due to price increases but also offset by geographic mix. The consumer products giant said that its core earnings per share (EPS) came in at $0.82 on a 1% decrease in sales to $20.2 billion. The sales decrease was mostly due to foreign exchange that cut sales by 4%. P&G is showing that four of its five business segments increased sales year over year.

Thomson Reuters had a normalized EPS estimate of $0.77 and sales were expected to be $20.26 billion in the quarter. On a net basis after items, P&G’s net from continuing operations was $0.74 per share. P&G also completed the sale of the Snacks business in the quarter, resulting in a net gain of $0.48 per share. Operating cash flow was $4.0 billion for the fourth quarter and free cash flow was $2.7 billion.

The company is maintaining earnings guidance of $3.80 to $4.00 in core earnings per share for its fiscal 2013. Net sales for fiscal 2013 are expected to be flat to negative by 2% due to a negative 4% impact from foreign exchange. P&G says that its organic sales are expected to rise 2% to 4%, that its pricing should add 2% to sales, and an unfavorable product and geographic mix is expected to reduce sales by 1%.

CEO Bob McDonald said:

We enter fiscal 2013 with very strong developing market momentum, strengthened plans on our core developed market business, and with the benefit of a $10 billion cost savings program, which is well underway. Despite a difficult macro environment, we see significant opportunities for top- and bottom-line growth.

Oddly enough, a keyword search for “activist” did not generate any mention in the press release.

Shares closed at $63.51 Thursday, and shares are indicated marginally higher with the broader market this morning. The 52-week range is $57.56 to $67.95.

JON C. OGG

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