NEW YORK: US consumer products giant Procter & Gamble said on Thursday that profit fell two percent in its latest quarter, under pressure from higher commodity costs.
The maker of Crest toothpaste, Braun shavers and other global brands reported fiscal first-quarter net earnings of $3.02 billion, down from $3.08 in the July-September period in 2010.
Earnings per share rose one percent to $1.03, in line with analyst expectations.
Net sales rose nine percent to $21.92 billion, better than the market forecast of $21.55 billion.
The company said its gross margin was squeezed mainly due to higher commodity costs.
But Bob McDonald, P&G chairman, president and chief executive, said the first quarter was a "good start" to the fiscal year.
"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."
The Cincinnati, Ohio-based company has a presence in about 180 countries and sells such well-known brands as Tide laundry detergent, Gillette razors, Wella hair care products and Duracell batteries.
The company reiterated it expects a pick-up in operating profit growth in the second-half of its fiscal year.
"The improvement is expected to be driven by an increasing benefit from price increases, a declining impact from higher commodity costs and accelerating productivity improvements and cost savings," it said.
P&G, which says it serves about 4.4 billion people around the world, predicted sales would grow between three to six percent in fiscal 2012, lowering its prior guidance of five to nine percent growth.
However, it reaffirmed its forecast of earnings per share of $4.17 to $4.33.
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